India to Become Big Power in Semiconductors, Partners With Singapore

India and Singapore have tied up to enhance mutual cooperation in semiconductors and digital technology. This can increase the importance of these two countries in the international supply chain of semiconductors. Tensions between the US and China are causing changes in the semiconductor segment.

During the two-day visit of Prime Minister Narendra Modi to Singapore, both the countries have signed an agreement to increase cooperation in chip design and manufacturing. Apart from this, Singapore’s chip manufacturing facility will be established in India. Take Investment will also be increased. In a statement issued by the central government, it has been told that India and Singapore will also work together in cyber security, fifth generation mobile network, super computing and artificial intelligence (AI).

The tension between the US and China has affected the supply in the international chip market. India, Singapore and Malaysia can benefit from this. This year the sales of the international chip market can reach around $ 588 billion. To avoid geopolitical risks, Western countries and China are engaged in creating separate supply chains. The semiconductor industry in India is in its initial stages. However, Singapore is playing an important role among the countries in this segment. Some of the large chip manufacturing plants in Southeast Asia are in Singapore. These include NXP Semiconductors NV to Micron Technology. Prime Minister Modi plans to make India a superpower in technology. A strong semiconductor ecosystem will be important in this.

India and Singapore have also signed agreements in the areas of health and skill development. Singapore’s Foreign Minister Vivian Balakrishnan recently told reporters that strong relations with India would benefit in the fast-growing South Asian market. He said, “You know Singapore is a very small country. We have a large share of international semiconductor manufacturing.” The central government has prepared a $21 billion plan to increase semiconductor manufacturing in India. Singapore has expertise in memory chips and mature logic processors used in electronic devices and automobiles. India can benefit from this in rapidly expanding its chip industry. The demand for semiconductors has increased rapidly in the last few years. However, their supply is less in comparison.