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06-09-2024
Bureau Report + Agencies
NEW DELHI: The leaders of India and Singapore on Thursday signed an agreement to partner and cooperate in semiconductors, in a deal aimed at giving Singaporean firms a greater role in supply chains in the Indian market, the two countries said.
A Memorandum of Understanding (MoU) was signed during Indian Prime Minister Narendra Modi’s two-day visit to Singapore, his fifth overall and first since 2018.
“Singapore and India will leverage complementary strengths in their semiconductor ecosystems and tap on opportunities to build resilience in their semiconductor supply chains,” Singapore’s trade ministry said in a statement.
“This will include government-led policy exchanges on ecosystem development, supply chain resilience, and workforce development.”
Tiny Singapore has long punched above its weight in the sector, accounting for 11% of the global semiconductor market, with 20% of global semiconductor equipment manufactured in the country.
Semiconductors are a key plank of India’s business agenda, with a $10 billion package in place to boost the industry’s push to compete in future with countries like chipmaking heavyweight Taiwan. India expects its semiconductor market to be worth $63 billion by 2026.
In February, it gave the go-ahead to construction of three semiconductor plants worth over $15 billion by firms including Tata Group and CG Power, with plans to manufacture and package chips for sectors including defence, autos and telecommunication.
Modi met Singapore Prime Minister Lawrence Wong, President Tharman Shanmugaratnam and former premier Lee Hsien Loong during the visit.
Three other agreements were also signed, on digital technologies, education and skills development and on health and medicine, according to India’s foreign ministry.
In February, India gave the go-ahead to construction of three semiconductor plants worth 1.26 trillion rupees ($15.2 billion) by firms including Tata Group and CG Power on Thursday, as the country pursues its goal of becoming an electronics powerhouse.
India, which is seeking to rival countries such as Taiwan in chipmaking, expects its semiconductor market to be worth $63 billion by 2026, but does not yet have a chipmaking facility.
Prime Minister Narendra Modi wants to make India a chipmaker for the world as his government tries to overcome setbacks faced in its bid to offer $10 billion in incentives to the industry.
Indian Electronics Minister Ashwini Vaishnaw said construction will begin on the plants within the next 100 days, adding that they will manufacture and package chips for sectors including defence, automobiles and telecommunication.
“This is a big decision for the country and a key accomplishment towards making India a self-dependent country,” Vaishnaw told reporters.
He did not give updates on other key chipmaking applicants, opens new tab, including Indian conglomerate Vedanta (VDAN.NS), opens new tab, Taiwan’s Foxconn (2317.TW), opens new tab and Israel’s Tower Semiconductor (TSEM.TA), opens new tab.
Tata will partner with Taiwan’s Powerchip (6770.TW), opens new tab to set up India’s first chipmaking plant worth 910 billion rupees in Gujarat state’s Dholera, he said, while CG Power (CGPO.NS), opens new tab will partner with Japan’s Renesas Electronics Corp (6723.T).
