The Hague (AFP) – Dutch tech giant ASML signed a deal with Tata Electronics Saturday to help build and scale up a semi-conductor plant in India, overseen by Prime Minister Narendra Modi on his tour of the Netherlands. ASML, which makes cutting-edge machines to manufacture semi-conductors, said it would “enable the establishment and ramp-up” of the Dholera plant in Modi’s home state of Gujarat in western India.
The Dutch firm would deploy its advanced lithography tools in the plant, which enable the rapid mass production of high-tech microchips, found in everything from cars to mobile phones. The deal came as the Netherlands and India struck an economic partnership accord, following on from a free-trade agreement between India and the European Union that Modi dubbed “the mother of all deals.” ASML, Europe’s biggest tech firm by market value, said it saw “many compelling opportunities” in the Indian semi-conductor sector.
“We are committed to establishing long-term partnerships in the region,” said ASML’s chief executive officer Christophe Fouquet in a statement. Tata Electronics’ plant, with a planned investment of $11bn, will make semi-conductor chips for the AI sector, as well as the car industry and other economic segments. New Delhi sees the European bloc as an important source of much-needed technology and investment to rapidly upscale its infrastructure and create millions of new jobs.
On the other side, the EU has eyed India — the world’s most populous nation and a fast-growing economy — as an important market for the future. “India’s strides in the world of semi-conductors offers immense opportunities for the youth of our nation,” said Modi. “This is a sector in which we will keep adding vigour in the times to come.”
– ‘Invest heavily’ – Prime Minister Rob Jetten told reporters that Dutch companies “can help India enormously to invest heavily there in the coming years and to create new employment for Indians.” “It offers Dutch companies tremendous opportunities to invest in India, but also to attract Indian talent to the Netherlands,” said the Dutch PM.
Modi’s trip to the Netherlands was his second since 2017, as the two countries seek to boost bilateral trade from the $27.8 billion (23.7 billion euros) last year. Earlier Saturday, Modi also addressed a large crowd of Indian ex-pats and visited Dutch King Willem Alexander. During his trip, he inspected the centuries-old Chola Plates, rings with engraved copper plates, that are being returned to India by Leiden University.
The Indian leader is on a whirlwind five-nation tour that has already taken in the United Arab Emirates and will see Modi also visit Sweden, Norway, and Italy. In the UAE, home to 4.5 million Indians, Modi on Friday stressed the need for a “free, open and safe” Strait of Hormuz, the key oil shipping route blocked due to the US-Israeli war with Iran.
Modi heads to Sweden on Sunday, where he will address a European business leaders’ forum alongside EU chief Ursula von der Leyen, before heading to Norway a day later for an India-Nordic Summit. Modi’s final leg will be Italy on May 19, where Modi will meet Prime Minister Giorgia Meloni — with whom he has a close friendship.
© 2024 AFP
