May 16 (Reuters) – Tata Electronics and ASML on Saturday signed an agreement to build India’s first front-end semiconductor fabrication plant in the state of Gujarat, India’s Ministry of External Affairs said.
The deal was signed in the presence of Indian Prime Minister Narendra Modi and Dutch Prime Minister Rob Jetten, the ministry added.
The two leaders also met chief executives from leading Dutch companies across several sectors including energy, ports and technology, the ministry said.
Modi encouraged Dutch companies to invest in areas such as semiconductors, renewable energy, digital technologies and healthcare, while both leaders called for early implementation of an India-European Union free trade agreement.
India has pledged billions of dollars in subsidies to attract semiconductor fabrication plants and related manufacturing, with eight projects underway including a $14 billion Tata Electronics facility in Gujarat.
Meanwhile, Dutch semiconductor firms are seeking new markets and geographical diversification amid export controls and trade restrictions linked to U.S.-China technology rivalry.
(Reporting by Disha Mishra in Bengaluru. Editing by Mark Potter)