It’s A “Fab” Deal!

What a chip factory in Gujarat and a Dutch machine company reveal about the modern world.

Two days back, Tata Electronics signed an agreement with Dutch company ASML, for the latter to help Tata build India’s first chip fabrication plant. The deal was signed in the presence of Indian PM Narendra Modi and Dutch counterpart Rob Jetten.

You have perhaps not heard much about ASML. But in the semiconductor world, it is an absolute giant. It is Europe’s largest technology company and, more importantly, it holds a near-monopoly over something essential for making advanced chips anywhere in the world. What exactly does ASML make? We’ll get to that in a bit.

In Dholera, Gujarat, Tata Electronics is building a 300mm “fab” with a monthly capacity of 50,000 wafers for Analog and Logic IC chips based on 28nm to 110nm technologies. That sounds impressive. But what the heck does any of that mean?

And finally, why were the Prime Ministers of two countries present when two private companies signed an MoU? Does it have something to do with national ambitions and geopolitics?

As always, you’ll find answers to all these questions and more. But to understand why a factory in Gujarat or a machine from the Netherlands is such a big deal, we first need to look at how any computer brain is “born”…

Curious? Read or listen to how the deal between Tata Electronics and the Dutch company ASML is part of a much larger global story on Dot.

Find the full story here: https://www.dot.news/post/6a09a275a9b7590002dbdcb3

*Dot is a reader-supported platform for better journalism.*

We publish simple and friendly explainers every day across policy, business, technology & culture. These stories not only tell you what happened, but also why it matters. All it asks is 5 minutes of your time.

No ads, no propaganda, no noise — made possible entirely by our subscribers. Together, let’s unhate news!

[embed]Dot News | Simple and Significant News need not be boring, confusing, or misleading.www.dot.news