The Dutch firm ASML, a key manufacturer of advanced chipmaking equipment, is increasingly optimistic about India's potential in the semiconductor supply chain and is planning to expand its presence in the country. ASML aims to have its engineers collaborate with Indian chipmakers to strengthen its foothold in Asia's semiconductor industry.

ASML's chief executive officer, Christophe Fouquet, stated in an interview that while the company is not currently investing hundreds of millions in India, they are bullish on the country due to its rapidly developing economy. He added that ASML is bringing more executives to India and sees an opportunity for its engineers to work more closely with Indian semiconductor companies to build a more robust presence in the Asian semiconductor supply chain.

ASML's interest in India comes as the country is striving to establish a comprehensive semiconductor supply chain, including the indigenization of semiconductor components. The company's expansion will align with the growth of the semiconductor industry in India, with plans to establish a larger presence for its core technologies as more chip testing and packaging facilities are established and chip fabs become operational.

ASML holds a unique position in the semiconductor industry as the sole manufacturer of extreme ultraviolet (EUV) lithography machines, which are essential for creating advanced microchips. These machines use ultraviolet or low-frequency light to etch integrated circuits onto silicon wafers and are crucial for top chip manufacturers like Nvidia and Taiwan Semiconductor Manufacturing Co. Ltd.

India's semiconductor sector is projected to reach $55 billion by 2026, driven by demand for smartphones, cars, and data centers. ASML recognizes India as a strategic market in the global chip ecosystem and views Semicon India as an important platform to connect with India's ecosystem and explore long-term opportunities.

ASML's increased focus on India underscores the growing confidence in India's semiconductor ambitions. International players recognize India's potential to become a global hub for semiconductors, supported by government initiatives, new chip fabs, and growing international interest. ASML's presence in India signifies the country's shift from being just a participant in the chip race to setting the pace.

Despite some concerns about the 2026 outlook due to customer hesitation and market uncertainty, analysts remain positive about ASML's long-term prospects, citing its technological leadership and complex supply chain as barriers to entry for competitors. The company's long-term revenue outlook of €44 billion to €60 billion by 2030 remains unchanged, offering a positive outlook for long-term investors.