6 Sept 2024
Amid the tension between the US and China, India and Singapore signed a deal to collaborate to manufacture semiconductor chips and digital technologies.
Prime Minister Narendra Modi signed several agreements during his two-day visit to Singapore to promote chip design and manufacturing and attract Singapore tech companies to invest in India. The two nations will also work closely in cybersecurity, supercomputing, AI, and fifth-generation mobile networks.
The $588 billion global semiconductor chip market has been severely impacted by the US-China war. It has jolted many global economies to build independent domestic supply chains unhindered by geopolitical dynamics and attracting business opportunities, too.
Singapore is home to some of Southeast Asia's biggest chip manufacturing plants, including Micron Technology Inc. and NXP Semiconductors NV, and many venture capitalists investing in chip startups.
The Indo-Singaporean deal is a step towards making India a technological superpower, wherein semiconductor manufacturing will play a crucial role. The Indian government has planned a $21 billion investment to ramp up semiconductor capabilities, including $15 billion in chip manufacturing facilities nationwide.