September 5, 2024 – The leaders of India and Singapore have signed a significant agreement to enhance cooperation in the semiconductor sector. This partnership aims to strengthen Singaporean firms’ roles within India’s supply chains, marking a pivotal development in both countries’ economic collaboration.
The Memorandum of Understanding (MoU) was formalized during Indian Prime Minister Narendra Modi’s two-day visit to Singapore, his fifth trip to the city-state and first since 2018.
“Singapore and India will leverage complementary strengths in their semiconductor ecosystems and tap into opportunities to build resilience in their semiconductor supply chains,” stated Singapore’s trade ministry in an announcement.
This agreement includes government-led policy exchanges focusing on ecosystem development, supply chain resilience, and workforce development.
Despite its small size, Singapore has established itself as a powerhouse in the semiconductor industry, contributing 11% of the global market and manufacturing 20% of the world’s semiconductor equipment.
Semiconductors are a key focus of India’s business strategy, supported by a $10 billion initiative aimed at bolstering the industry to compete with global leaders like Taiwan. India’s semiconductor market is projected to reach $63 billion by 2026.
In February, India approved the construction of three semiconductor plants valued at over $15 billion, with participation from major firms including Tata Group and CG Power. These facilities will focus on manufacturing and packaging chips for critical sectors such as defense, automotive, and telecommunications.
During his visit, Prime Minister Modi also met with Singapore Prime Minister Lawrence Wong, President Tharman Shanmugaratnam, and former Prime Minister Lee Hsien Loong. Additionally, three other agreements were signed covering digital technologies, education and skills development, as well as health and medicine.
