On Thursday, India and Singapore formalized a significant partnership by signing a Memorandum of Understanding (MoU) to enhance their collaboration in the semiconductor sector. This pivotal agreement was executed in the presence of Indian Prime Minister Narendra Modi and Singaporean Prime Minister Lawrence Wong during Modi’s official visit to Singapore.
The MoU is designed to bolster India’s burgeoning semiconductor industry while providing Singaporean companies and their extensive supply chains with an entry point into India’s rapidly expanding market. According to an official statement, this collaboration is set to support India’s ambitious goal of becoming a major global hub for semiconductor manufacturing. This aspiration is driven by a strong domestic demand in various sectors, including electronics, electric vehicles, and manufacturing.
Under the terms of the MoU, both nations will leverage their respective strengths to develop robust and resilient semiconductor supply chains. While Singapore does not lead in the production of high-end semiconductor chips, it plays a crucial role in the global tech supply chain. Singapore is known for its production of low-end chips, which are essential for a variety of applications including electric vehicles, smartphones, and other consumer electronics.
Singaporean companies may find it advantageous to consider India as a base for assembly and testing operations, particularly due to India’s competitive cost structure. Currently, Singapore is responsible for approximately 10% of global semiconductor output, 5% of global fabrication capacity, and 20% of semiconductor equipment production. Moreover, nine of the top fifteen global semiconductor companies, such as Qualcomm, AMD, Applied Materials, Global Foundries, and Micron, have established operations in Singapore, highlighting its critical role in the semiconductor ecosystem.
In addition to the semiconductor MoU, several other agreements were also signed, focusing on areas such as digital technology, skill development, and healthcare. These agreements reflect a broader commitment to enhancing bilateral cooperation in various sectors of mutual interest.
During his visit, Prime Minister Modi participated in a roundtable discussion with leading business executives and CEOs in Singapore. The conversation centered on deepening economic ties between the two countries and exploring new investment opportunities. Modi emphasized the ongoing reforms in India that are aimed at fostering a more conducive environment for investment and innovation. He extended an invitation to Singaporean business leaders to consider investing in India, particularly in sectors such as aviation, energy, and skill development.
The discussions at the roundtable underscored India’s commitment to becoming a global leader in key industries and highlighted the country’s readiness to engage with international partners in its growth journey. The agreements signed during Modi’s visit are expected to pave the way for stronger economic and technological collaboration between India and Singapore, positioning both nations to benefit from each other’s strengths and capabilities in the evolving global market.
PM Narendra Modi’s visit to Singapore is significant for India’s semiconductor push
Prime Minister Narendra Modi’s recent visit to Singapore marks as a pivotal moment in the realm of chip manufacturing, underscoring of its significant geo-strategic and geo-economic implications. This visit, part of a broader two-nation of the tour of South-East Asia, comes after Modi’s visit to Brunei Darussalam, which was the first by an Indian Prime Minister Modi. This trip to the Singapore was Modi’s fifth visit, emphasizing that the deepening relationship between the two countries.
Singapore’s early and strategic positioning in the semiconductor industry makes it a valuable partner for India as it aims to expand of its footprint in chip manufacturing. Singapore has established by itself as a Pivotal player in the global semiconductor supply chain, particularly in the production of the low-end chips used in a range of technologies from electric vehicles to smartphones. The collaboration with the Singapore, therefore, holds are substantial promise for India, especially in building resilient and competitive semiconductor supply chains.
PM Modi In Singapore: India and Singapore Sign MOUs In Fields Of Digital Technology, Semiconductor
India’s ambition to become as a leader in semiconductor manufacturing is driven by increasing the domestic demand in sectors like electronics, electric vehicles, and advanced manufacturing. By partnering with the Singapore, India seeks to leverage the city-state’s established semiconductor ecosystem, which includes the substantial production capacity and a well-developed network of global semiconductor companies.
In addition to the semiconductor focus, Modi’s visit to Singapore was part of a broader diplomatic and strategic engagement. The trip to Singapore followed Modi’s inaugural visit to Brunei Darussalam, reflecting India’s Act East Policy and its commitment to the strengthening ties within the Indo-Pacific region. Brunei, an important partner in this policy, engaged in discussions with Modi centered around trade, defense, space exploration, and cultural exchanges. These talks with Sultan Haji Hassanal Bolkiah, the world’s longest-reigning monarch, highlighted to the multifaceted nature of India’s engagement with Southeast Asia.
The importance of the MoU with Singapore extends beyond its immediate economic benefits. It also reflects the growing strategic partnership between both India and Singapore in the global tech landscape. Singapore’s role in the semiconductor industry is complemented by its geopolitical positioning, making it an ideal partner for an India’s ambitions in the technology sector.
Modi’s visit underscores a dangerous phase in India’s efforts to enhance that its global standing in high-tech industries. By aligning with Singapore, India is not only tapping into a crucial component of the global supply chain but also reinforcing its strategic position in the Indo-Pacific region. The agreements are signed throughout the visit, particularly in semiconductor manufacturing, are expected to drive substantial growth and innovation, positioning both the nations at the forefront of global technological advancements.