Singapore, India strengthen semiconductor partnership with nnew MOU

Singapore and India formalized a Memorandum of Understanding (MOU) to collaborate in the semiconductor sector. This partnership aims to bolster India’s growing semiconductor industry while enabling Singapore’s ecosystem of semiconductor companies and related supply chains to engage in the rapidly expanding Indian market.

The exchange of the MOU took place in the presence of India’s Prime Minister Narendra Modi and Singapore’s Prime Minister Lawrence Wong during Prime Minister Modi’s official visit to Singapore. The agreement had been signed earlier on August 26, 2024, by Singapore's Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, and India’s Minister of Electronics and Information Technology, Ashwini Vaishnaw, during the India-Singapore Ministerial Roundtable.

India is positioning itself as a global hub for semiconductor manufacturing, driven by domestic demand in sectors such as electronics, electric vehicles (EVs), and manufacturing. Singapore, with its well-established semiconductor ecosystem, offers a strong cluster of companies eager to support India’s ambitions in the semiconductor space.

The MOU sets the stage for both nations to leverage their complementary strengths in semiconductor ecosystems and strengthen supply chain resilience. Key areas of cooperation include policy exchanges focused on ecosystem development, workforce enhancement, and supply chain stability. To facilitate these efforts, Singapore’s Ministry of Trade and Industry (MTI) and India’s Ministry of Electronics and Information Technology (MeitY) will create a Policy Dialogue to oversee collaboration and exchange best practices.

A business-to-business Cooperation Forum, spearheaded by Enterprise Singapore and the India Semiconductor Mission (ISM), will encourage private sector partnerships between the two countries, driving further innovation and growth.

Commenting on the MOU, Deputy Prime Minister Gan Kim Yong said, “This agreement reaffirms the commitment of both India and Singapore to collaborate in addressing the global demand for semiconductors. It will also help strengthen the resilience of semiconductor supply chains and open up new markets and opportunities for businesses in both countries.”

Deputy Managing Director of Enterprise Singapore, Tan Soon Kim, added, “Singapore is a crucial player in the global semiconductor supply chain. Our companies have extensive expertise through partnerships with major semiconductor players, providing services, solutions, and components to global chipmakers and manufacturers. These capabilities make Singaporean companies ideal partners for India’s semiconductor growth.”

In support of this partnership, Enterprise Singapore has led several delegations to India this year, with positive feedback from both Singaporean companies and Indian partners. Tan encouraged more companies to seize the opportunities created by this latest MOU to tap into India’s burgeoning semiconductor market.

Strengthening Semiconductor Ecosystems

As part of his visit to Singapore, Prime Minister Modi, accompanied by Prime Minister Wong and Minister for Home Affairs and Law K Shanmugam, visited AEM Singapore, a key player in Singapore’s semiconductor ecosystem. The visit included a presentation by the Singapore Semiconductor Industry Association (SSIA) on the country’s semiconductor sector and its potential for collaboration with India. Prime Minister Modi also toured AEM’s facilities and met with representatives from ecosystem players such as APP Systems, Century Water, Ecsal Technologies, NexGen Wafer Systems, PEP Innovation, and Temasek Polytechnic.

Showcasing Singapore’s Semiconductor Expertise

Looking ahead, Enterprise Singapore is partnering with the Singapore Precision Engineering & Technology Association (SPETA) to showcase Singapore’s semiconductor capabilities at SEMICON India, held from September 11-13, 2024, in New Delhi. More than 20 Singaporean companies will participate in the event, showcasing their solutions and seeking cross-border partnerships. Additionally, SSIA is planning a business mission to India in collaboration with the India Electronics and Semiconductor Association (IESA).

These initiatives are part of a broader effort to raise awareness of Singapore’s semiconductor expertise. In July and August 2024, Enterprise Singapore led delegations to Gujarat and Maharashtra to explore collaboration opportunities between Singapore’s semiconductor ecosystem and key Indian stakeholders.