Overview
The semiconductors sector received a major push in 2026 when Prime Minister Narendra Modi visited the Netherlands (16‑17 May 2026). During the visit, India and the Netherlands elevated their ties to a Strategic Partnership and signed 17 pacts covering chips, critical minerals, defence, migration and renewable energy.
Key Developments
- MoU for a 300 mm fab: ASML and Tata Electronics signed a Memorandum of Understanding to set up a 300 mm (12‑inch) semiconductor fabrication plant in Dholera, Gujarat. This plant will rely on EUV lithography machines, the only technology capable of producing cutting‑edge chips.
- Brain bridge in research: A Memorandum of Cooperation links Eindhoven University of Technology, University of Twente with six Indian institutes (IISc Bangalore, IIT‑Bombay, IIT‑Delhi, IIT‑Gandhinagar, IIT‑Guwahati, IIT‑Madras) for joint semiconductor research.
- Defence and migration pacts: Structured tri‑service interaction for defence cooperation and a joint effort to curb irregular migration while facilitating skilled mobility.
- GaN plant approval: The Union Cabinet cleared a Rs 3,068 crore project by Crystal Matrix Ltd. to fabricate and assemble GaN (Gallium Nitride) chips for Mini/Micro‑LED displays.
- ISM expansion: India Semiconductor Mission (ISM) 2.0, launched in February 2026, now covers semiconductor equipment, design tools, R&D and supply‑chain resilience.
Important Facts
EUV lithography uses light of 13.5 nm wavelength, close to the X‑ray range. The process projects a mask pattern onto a photosensitive silicon wafer, shrinking the features and allowing multiple passes to build complex circuits.
Moore’s Law predicts a periodic doubling of transistor count, which translates into higher performance and lower cost. EUV lithography is the key enabler that keeps this trend alive by making smaller nodes economically viable.
GaN devices conduct higher voltage, generate less heat and allow tighter stacking, resulting in compact, high‑efficiency power converters and LED modules.
Exam Relevance
For GS 3 (Science & Technology), the article covers emerging chip technology, the role of EUV lithography, and the strategic importance of GaN – all potential prelim and mains topics. For GS 2 (Polity), the elevation to a Strategic Partnership illustrates India’s diplomatic outreach in high‑tech domains. Understanding the MoU framework and the “brain bridge” helps answer questions on international research collaboration.
Way Forward
To sustain momentum, India must focus on:
- Building a skilled workforce through specialised training in EUV lithography and GaN processing.
- Ensuring a resilient supply chain for critical materials, chemicals and equipment.
- Strengthening public‑private partnerships, especially with global leaders like ASML, to secure technology transfer.
- Leveraging the ISM 2.0 roadmap for coordinated investment across design, fabrication and packaging.
These steps will help India move from a chip‑consumer to a chip‑producer, aligning with the nation’s broader goal of technological self‑reliance.