New Delhi has been ramping up efforts to make forays into the lucrative chip market
India has entered into an agreement with Singapore to boost its semiconductor industry, the countries said in a joint statement said on Thursday during a visit by Indian Prime Minister Narendra Modi to the country.
The India-Singapore Semiconductor Ecosystem Partnership aims to support New Delhi’s growing semiconductor industry “while facilitating Singapore’s ecosystem of semiconductor companies and related supply chains,” a statement said.
Modi and his Singaporean counterpart Lawrence Wong agreed that advanced manufacturing, particularly in developing resilient semiconductor supply chains, could be a new pillar of bilateral cooperation, according to New Delhi’s readout.
During his stay in Singapore, the Indian leader also visited AEM, a major Singaporean company in the semiconductor and electronics sector. Modi also interacted with the CEOs of leading companies in the city-state. “Singapore is not just a partner country. It serves as an inspiration for every developing nation. We aim to create multiple Singapores within India,” Modi was quoted by Hindustan Times as saying.
My visit to Singapore has been a very fruitful one. It will certainly add vigour to bilateral ties and benefit the people of our nations. I thank the government and people of Singapore for their warmth. pic.twitter.com/hx0DVl71WX
— Narendra Modi (@narendramodi) September 5, 2024
Singapore accounts for 11% of the global semiconductor market, with 20% of global semiconductor equipment manufactured in the country. Meanwhile, New Delhi has been ramping up its efforts to boost domestic chip production in recent years. In 2021, the government announced the India Semiconductor Mission for the development of semiconductor and display manufacturing in the country, with a budget of nearly $9 billion.
Earlier this week, the Indian cabinet approved a proposal for the establishment of a semiconductor manufacturing unit in Modi’s home state, Gujarat, with an outlay of over $390 million. The project would be India’s fifth major semiconductor manufacturing hub. Another major project was announced by the chief minister of another state, Maharashtra, where Israel’s Tower Semiconductor and Indian conglomerate Adani Group are planning to invest around $10 billion for a semiconductor plant.
Overall, India expects its semiconductor market to be worth $63 billion by 2026, Reuters reported. In an address to parliament earlier this year, Modi vowed to make the country a “manufacturing hub of semiconductors” during his third term. At present, the semiconductor value chain – including the design, manufacturing, and sale of final products – is a complex global network concentrated in the US, South Korea, the Netherlands, Japan, Taiwan, and China.
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