India Gains Backing On Chips And AI

(MENAFN- The Arabian Post)

Strong international validation for India's ambitions in semiconductors and artificial intelligence has emerged during Union minister Ashwini Vaishnaw's visit to Veldhoven, the Netherlands, where he held discussions centred on advanced manufacturing technologies and long-term collaboration. Vaishnaw described the engagement as a major opportunity to understand cutting-edge systems and align partnerships that could accelerate India's high-technology ecosystem.

The visit to Veldhoven, home to the world's most sophisticated chipmaking equipment capabilities, comes at a time when New Delhi is pushing to anchor itself more firmly in global semiconductor supply chains while building domestic capacity. Vaishnaw indicated that interlocutors acknowledged India's policy direction and scale as compelling factors for deeper cooperation across semiconductors and artificial intelligence, two areas that are increasingly intertwined in next-generation computing and industrial automation.

Discussions during the trip focused on lithography technologies, supply-chain resilience and skills development, according to people familiar with the engagements. India's pitch rests on a combination of policy incentives, a large engineering workforce and expanding demand from electronics, automotive and data-driven sectors. Officials accompanying the minister underlined that partners in Europe see India as a credible long-term manufacturing and innovation base rather than merely a consumption market.

The Netherlands occupies a critical position in the global chip industry because of its dominance in extreme ultraviolet lithography, a technology essential for producing advanced semiconductors. India's engagement with Dutch stakeholders is therefore viewed as strategically important, particularly as countries and companies diversify supply chains amid geopolitical and commercial pressures. Vaishnaw's meetings sought to map pathways for collaboration spanning equipment ecosystems, materials, precision engineering and research linkages.

See also Merz signals EU–India trade pact push

Artificial intelligence featured prominently in the conversations, reflecting the convergence between advanced chips and AI workloads. Executives and policymakers discussed how specialised processors, high-performance computing and data infrastructure underpin AI deployment across sectors such as healthcare, mobility, energy management and public services. Indian officials emphasised the country's growing base of AI startups, public digital platforms and applied research, arguing that closer alignment with global technology leaders would strengthen both sides.

The endorsement referenced by Vaishnaw also reflects broader international assessments of India's semiconductor strategy, which combines fiscal incentives with infrastructure support and regulatory facilitation. Several fabrication and assembly projects have been announced across different states, while partnerships with global firms aim to address gaps in design, packaging and testing. Industry analysts note that execution risks remain, including timelines, talent depth in specialised manufacturing and integration into mature supply networks, yet acknowledge that momentum has improved.

From the Dutch perspective, collaboration with India offers access to a fast-growing market and diversification beyond traditional hubs. European technology firms have been recalibrating their engagement with Asia, balancing commercial interests with strategic considerations. India's emphasis on trusted partnerships and standards-based cooperation resonates in this context, particularly in areas linked to critical technologies.

Vaishnaw's visit also included interactions with research institutions and industry representatives to understand best practices in precision manufacturing and workforce training. Officials highlighted the importance of skilling programmes that align academic curricula with industry needs, a factor seen as decisive for sustaining semiconductor operations. India has been expanding such initiatives, including specialised training for chip design and manufacturing processes.

See also Mauritius tax route ruling shakes investors

The talks in Veldhoven are part of a broader diplomatic and industrial outreach aimed at positioning India within high-value segments of global technology chains. Previous engagements with partners in East Asia and North America have similarly stressed co-development, supply assurance and innovation partnerships rather than transactional sourcing. The Netherlands visit adds a European dimension to that strategy.

Notice an issue? Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.

MENAFN24012026000152002308ID1110644114