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India and Singapore have agreed to deepen cooperation in semiconductors and digital technologies, as they seek to play a greater role in the global chip supply chain that is being transformed by tensions between the US and China.
During a two-day visit by Indian Prime Minister Narendra Modi to the city-state, the countries signed agreements to cultivate talent in chip design and manufacturing and facilitate Singaporean technology investments in India, according to a statement from the Indian government on Thursday. The countries will also work more closely on cybersecurity, fifth-generation mobile networks, supercomputing and artificial intelligence.
Singapore, India and Malaysia are among the Asian economies that have emerged as beneficiaries of the protracted chip war between the US and China, which has shaken the global chip market, which is on track to reach $588 billion in sales this year. Both China and Western countries are rushing to set up independent supply chains to avoid geopolitical risks, creating business opportunities for the industry.
While India’s semiconductor industry is still in its infancy, Singapore has played a major role in the sector for decades. The city-state is home to some of Southeast Asia’s largest chip manufacturing plants, with global names ranging from NXP Semiconductors NV to Micron Technology Inc. The island nation boasts a legion of chip research and engineering talent, as well as abundant venture capital for chip startups.
The partnership also signals Modi’s ambition to transform the world’s most populous country into a technological superpower, for which a strong semiconductor ecosystem is crucial. During his trip to Singapore, he met Prime Minister Lawrence Wong and is expected to meet other key officials in the city-state. The two countries also signed agreements in the areas of health, medicine and skills development.
Closer semiconductor ties with India would help Singaporean companies tap into the fast-growing South Asian market, Singapore’s Foreign Minister Vivian Balakrishnan told reporters last month. “They know that although Singapore is very small, we have a disproportionate share of the global semiconductor manufacturing capacity, and they are studying our system carefully in terms of its ecosystem,” he said.
Modi’s government has launched a $21 billion plan to boost semiconductor capabilities across the country, with a total investment of $15 billion in chip factories announced earlier this year. Singapore’s expertise in memory chips and mature logic processors, which are widely used in electronics and cars, could help India grow its chip industry faster.
–With assistance from Santosh Kumar and Sudhi Ranjan Sen.
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