September 19, 2024 /SemiMedia/ — According to Reuters, India and Singapore have signed an agreement to cooperate in the semiconductor sector, aiming to strengthen supply chains and increase Singaporean firms' role in the Indian market. The Memorandum of Understanding (MoU) was signed during Indian Prime Minister Narendra Modi's visit to Singapore, his first since 2018.

The partnership will focus on leveraging the complementary strengths of both countries' semiconductor ecosystems and improving supply chain resilience. Singapore, a key player in the global semiconductor market, accounts for 11% of the sector and manufactures 20% of the world's semiconductor equipment.

Semiconductors are also a priority for India, which has introduced a $10 billion package to bolster its semiconductor industry, with plans for its market to reach $63 billion by 2026. India recently approved the construction of three semiconductor plants, worth over $15 billion, to produce chips for industries such as defense, automotive, and telecommunications.

During his visit, Modi also met with Singapore's Prime Minister Lawrence Wong and President Tharman Shanmugaratnam. In addition to the semiconductor deal, agreements on digital technologies, education, skills development, and health were signed.