Why Does Dutch Chip Giant ASML Praise PM Modi's Investor Accessibility?

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Why Does Dutch Chip Giant ASML Praise PM Modi's Investor Accessibility?

Synopsis

A senior ASML executive highlighted the contrasting accessibility of European and Indian political leaders, praising PM Modi for his approach to foreign investment. This engagement is vital as ASML explores opportunities within India's semiconductor landscape, aiming to enhance local chip production amid global uncertainties.

Key Takeaways

  • ASML is a leading player in the semiconductor industry.
  • Prime Minister Modi's accessibility to investors sets India apart.
  • India's semiconductor mission is rapidly advancing.
  • ASML's partnership could boost India's chip production.
  • Global trade tensions are prompting ASML to diversify markets.

New Delhi, Oct 2 (NationPress) A high-ranking official from the Dutch semiconductor powerhouse ASML has expressed concerns regarding the European Union's accessibility to its local companies. In stark contrast, Prime Minister Narendra Modi has been commended for his remarkable availability to investors looking to expand in India, as reported by various media outlets.

When questioned by journalists from Politico about whether ASML had adequate access to prominent European leaders, including Commission President Ursula von der Leyen, ASML's Executive Vice President of Global Public Affairs, Frank Heemskerk, stated: "It's not always straightforward."

Heemskerk's remarks followed a revelation that ASML’s CEO, Christophe Fouquet, had a lengthy two-hour discussion with Prime Minister Modi. "After listening intently for an hour and a half, he (Modi) remarked, 'You seem quite friendly; let me know how we can improve,'" Heemskerk shared.

Heemskerk further emphasized, "Political leaders should engage directly with the companies that are investing capital," according to the report by Politico.

ASML, the renowned Dutch chip equipment manufacturer, is actively seeking partnerships and enhancing its footprint in India amid global uncertainties. ASML stands as the sole supplier of extreme ultraviolet (EUV) lithography machines, crucial for crafting advanced microchips deployed in AI, electric vehicles, and various digital technologies.

The firm intends to share its cutting-edge lithography solutions and knowledge, potentially through collaboration, to assist Indian semiconductor fabs in achieving state-of-the-art chip production.

This initiative is designed to leverage India's robust governmental support for domestic chip manufacturing, its burgeoning tech ecosystem, and a skilled labor pool, while simultaneously diversifying ASML's market reach in light of global trade challenges.

ASML's expertise could empower emerging Indian fabs to produce high-performance, energy-efficient chips, thereby fortifying India's role in the global semiconductor landscape.

As a critical supplier to major chip manufacturers such as TSMC and Samsung, ASML aims to broaden its market presence due to escalating global trade tensions and export limitations impacting other areas.

ASML also showcased its commitment by participating in SEMICON India 2025, viewing it as an opportunity to connect with the Indian ecosystem and explore future avenues.

Under the India Semiconductor Mission, ten semiconductor plants have received approval, with construction progressing rapidly.

A pilot production line in one of the facilities has already commenced operations in Sanand, and within a year, four additional units are projected to begin production. Major global players like Applied Materials, Lam Research, Merck, and Linde are investing in support factories and supply chains. This collaborative ecosystem embodies Prime Minister Modi’s vision for the long-term growth of the industry in Bharat," stated IT & Electronics Minister Ashwini Vaishnaw.

Point of View

The ongoing dialogue between ASML and Prime Minister Modi underscores a commitment to fostering foreign investment in India's semiconductor sector, highlighting a collaborative approach that could set new benchmarks for industry growth.
NationPress
02/10/2025

Frequently Asked Questions

What is ASML's role in the semiconductor industry?
ASML is the sole manufacturer of extreme ultraviolet (EUV) lithography machines, essential for producing advanced microchips used in various technologies.
How is PM Modi facilitating investment in India?
PM Modi is known for being highly accessible to foreign investors, creating a favorable environment for business expansion in India.
What is the India Semiconductor Mission?
The India Semiconductor Mission aims to establish a robust semiconductor manufacturing ecosystem in India, with various plants approved and under construction.
Why is ASML interested in Indian semiconductor fabs?
ASML seeks to collaborate with Indian fabs to enhance chip production capabilities, leveraging India's skilled workforce and government support.
What challenges does ASML face in Europe?
ASML has criticized the EU for its inaccessibility to companies, which complicates engagement with key policymakers.
Nation Press