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India and Singapore ink agreement for semiconductor collaboration
India to invest $10b in semiconductor market, aiming to compete with chipmaking heavyweight Taiwan.
The leaders of India and Singapore have signed a deal to collaborate on semiconductors, with the goal of increasing the involvement of Singaporean companies in India's supply chains.
The Memorandum of Understanding was signed during Indian Prime Minister Narendra Modi's visit to Singapore—his fifth overall and first since 2018—and focused on leveraging both countries' strengths in the semiconductor industry.
Singapore's trade ministry stated that the partnership will involve sharing knowledge on ecosystem development, supply chain resilience, and workforce development.
Despite its small size, Singapore has a significant presence in the global semiconductor market, accounting for 11% of the global market, with 20% of global semiconductor equipment produced in the country.
India, meanwhile, is investing heavily in its semiconductor sector, with a $10 billion package designed to compete with countries like Taiwan, a global leader in chipmaking. The country aims to grow its semiconductor market to $63 billion by 2026.
During his visit, Modi also signed three other agreements with Singaporean officials on digital technologies, education, and healthcare. This cooperation between the two countries aims to strengthen the semiconductor industry and foster economic growth.
