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Modi visit spotlights ASML choke point as India’s $14 billion chip plant depends on one Dutch firm
India
Published on 16 May 2026
ASML makes the only EUV machines India needs
Modi’s Netherlands tour is being treated as a semiconductor diplomacy moment, because India’s chip push hinges on one Dutch company: ASML of Veldhoven. India’s state-backed effort to cut import dependence includes a $14 billion Tata Electronics mega-fab in Dholera, Gujarat, with Taiwan’s Powerchip. But advanced lithography—the most precise, capital-heavy step—requires ASML equipment. ASML’s grip on EUV systems means India’s silicon sovereignty depends on access and supply continuity from a single global supplier.
- Modi’s visit centers on India’s semiconductor project and ASML meetings
- ASML is the sole supplier of EUV advanced lithography machines
- India’s $14 billion Dholera fab plans to use ASML equipment
- Lithography is the most complex and precision-driven stage of chipmaking
- ASML holds over 80% of the global lithography equipment market
- ASML’s EUV monopoly enables chips at 7nm and below
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times