Leaders of India and Singapore Ink Deal to Collaborate on Semiconductors
India and Singapore signed an agreement to collaborate on semiconductors during PM Modi's visit. The partnership aims to boost Singaporean companies' presence in the Indian semiconductor market. Despite its size, Singapore has a significant presence in the global semiconductor industry.

The agreement focusses on partnering and cooperating in the semiconductor industry with the goal of increasing Singaporean companies' involvement in supply chains within the Indian market, according to the two countries.
The agreement, formalised in a Memorandum of Understanding (MoU), represents a strategic move to combine the strengths of both countries' semiconductor ecosystems. Singapore's trade ministry stated that the collaboration will aim to improve resilience in semiconductor supply chains through initiatives such as policy exchanges on ecosystem development, supply chain resilience, and workforce training.
Despite its small size, Singapore has a significant presence in the semiconductor industry, accounting for 11% of the global semiconductor market and manufacturing 20% of the world's semiconductor equipment. This collaboration is designed to capitalise on Singapore's sector expertise.
India has actively promoted semiconductors as a critical component of its economic strategy, with a substantial $10 billion package set aside to boost the industry's competitiveness, particularly against established chipmaking giants such as Taiwan. The Indian semiconductor market is expected to reach US$63 billion by 2026.
In a significant move earlier this year, India approved the construction of three semiconductor plants worth more than $15 billion. Companies such as Tata Group and CG Power are expected to lead these projects, which will focus on chip production and packaging for a variety of industries including defence, automotive, and telecommunication.
During his visit, Modi met with Singaporean leaders including Prime Minister Lawrence Wong, President Tharman Shanmugaratnam, and former Prime Minister Lee Hsien Loong. According to India's foreign ministry, three other agreements were signed that cover digital technologies, education and skill development, and health and medicine.
India and Singapore signed an agreement to collaborate on semiconductors during PM Modi's visit.
The partnership aims to strengthen Singaporean firms' presence in the Indian semiconductor market.
Singapore, despite its size, holds a significant share in the global semiconductor industry.
Source: REUTERS