India and Singapore have signed a Memorandum of Understanding (MoU) to collaborate on developing the semiconductor ecosystem during Prime Minister Modi’s visit to Singapore. This agreement will enable Singaporean semiconductor companies to enter the Indian market and foster cooperation in key areas such as talent development, knowledge sharing, and manufacturing.

During his visit, Prime Minister Modi met with leading CEOs from Singapore’s semiconductor industry, encouraging them to consider India as a potential site for expansion. An official highlighted that while Singapore faces constraints in land and labor, India has abundant land and a skilled workforce, making it an attractive option for Singapore’s semiconductor companies looking to expand their operations.

The MoU also aims to establish a strong and resilient semiconductor supply chain between the two nations, aligning policy regulations to support semiconductor manufacturing. This partnership is expected to leverage India’s resources and Singapore’s advanced capabilities to strengthen the semiconductor industry in both countries.

Singapore plays a significant role in the global semiconductor industry, accounting for 10% of global semiconductor output, 5% of fabrication capacity, and 20% of semiconductor equipment production. Additionally, nine of the top 15 global semiconductor companies, including Qualcomm, AMD, Applied Materials, Global Foundries, and Micron, have a presence in Singapore, further emphasizing the importance of this partnership.