As the Indian Prime Minister Narendra Modi embarked upon the official visit to the city-state, he sealed several deals with Singapore to strengthen technological ties as well as economic cooperation. Earlier on Thursday, meeting with the Deputy Prime Minister of Singapore Lawrence Wong, Modi, together with Wong, inked important agreements that concentrated on forging semiconductor production, digital technologies, and other spheres of mutual interest. The deal between India and Singapore couldn't be better timed, with geopolitical tensions rewriting the rules of global supply chains and both countries positioning themselves as indispensable players in the tech ecosystem.
Singapore: A Model for India's Aspirations
Modi called Singapore during his meeting with Wong both a partner and an inspiration for every developing country. We also want to create many Singapores in India, and I am happy that we are making efforts together in this direction," Modi said in Hindi. Admiration underlines how tiny Singapore belies its rapid rise into a technological and economic powerhouse-a template India is chasing in its dreams of emerging as a global semiconductor manufacturing and digital innovation hub.
India too is eager to replicate this success with its high-tech ecosystem through attracting foreign investments and encouraging home-grown innovation in the field. So far, Singapore has become the largest investor in India, hence both sides attach the utmost importance to their bilateral relationship; Modi's visit is one of those moments when this collaboration will go forward.
Forging New Partnerships: Four MoUs Signed
Probably the most important result of Modi's visit was the inking of four MoUs between both countries. Agreements that will further strengthen cooperation between the countries in key areas, such as:
- Semiconductors: Singapore has been involved in semiconductors for decades and is now sharing its experience to help develop the industry in India into a competitive player in global chip production.
- Digital Technologies: Given the growth in India's digital economy, the agreement will provide access to next-generation technologies in AI, blockchain, and 5G, among others. Singapore companies will take the critical lead in this transformation.
- Skills Development: Recognizing that skilled manpower will always be in demand in a technology-driven future, the two countries agree to collaborate on developing vocational training programs and upskilling initiatives to prepare the workforce for the industries of the future.
- Healthcare: Both countries intend to deepen their cooperation in healthcare technologies while bridging the gap in access to healthcare through digital solutions in medical innovation.
These MoUs form a milestone in the journey that both India and Singapore have embarked upon for mutual technological advancement, especially in semiconductors-a sector that holds the key to the future of global industries, ranging from consumer electronics to electric vehicles.
Singapore Semiconductor Industry Leadership
Despite the country's high operational costs, with its relatively small-sized productive apparatus, Singapore belies expectations and punches above its weight in the global semiconductor market: 10% of the world's production of semiconductors and 20% of the production of semiconductor manufacturing equipment make it one of the most efficient semiconductor hubs in the world 【source 1】. To India, which is scaling up its in-country semiconductor capabilities, Singapore is a natural partner.
It has, over the decades, been able to build an entire semiconductor industry, burgeoning into a vital node of the global technology ecosystem. It makes specialty chips critical to modern products: smartphones, automotive electronics, and advanced medical devices. The chips made in Singapore power key cutting-edge technologies; this makes the partnership with India even more strategic.
The new pact embarks on supply chains for semiconductor manufacturing by the governments of Singapore and India, and a steady inflow of investment. Taking a cue from Singapore, India aims to shift dependence on internally manufactured semiconductors rather than on imports and, in that way, self-sufficiency in the technology sector.
India's Growing Role in Global Chipmaking
India has positioned itself very aggressively as a key player in the supply chain of semiconductors globally. The administration, in the last couple of years, has announced some programs to attract foreign investments in chip production, including the "Make in India" initiative and the Production Linked Incentive (PLI) scheme【source 2】. These stated programs are designed to provide financial incentives to companies that set up semiconductor manufacturing facilities in India.
The COVID-19 pandemic accelerated the chip shortage felt all over the world and stressed the need for diversified production. With its ever-expanding digital infrastructure, India is a great destination for such investment into semiconductor manufacturing, located in a big, hitherto untapped market. That might have been the reason even Western companies like Apple started shifting some of their production to India. For the first time, the U.S. tech giant manufactures its high-end iPhones, including those from the Pro series, in the country.
With such partnerships with countries like Singapore, India is looking to cut reliance on Chinese imports and position itself as a vital link in the semiconductor supply chain. The Indian government is also in conversation with Malaysia, another powerful semiconductor player in Southeast Asia, to discuss further avenues for cooperation【source 4】.
**The Geopolitical Drive Behind the Chip Deal
Equally important is the geopolitical backdrop to this deal between India and Singapore. Set against growing tensions between the West and China, countries and companies are actively seeking to move production to more diversified networks. As China dominates semiconductor production amidst ongoing trade wars, global firms look at alternatives in an attempt to reduce their supply chain risks.
Competition in technology between the U.S. and China has put pressure on companies to move toward new markets. India, with its growing economy and geography, is becoming the go-to destination. A partnership with Singapore-already home to key manufacturing hubs for U.S. firms like Applied Materials and Micron Technology-would align India further into global tech supply chains.
In the larger perspective, the India-Singapore deal goes beyond economic gains to strategic positioning vis-à-vis emerging global power dynamics.
**Expanding the Scope of Cooperation
Modi's visit to Singapore forms part of the broader push to ramp up relations with key Asian economies. Ahead of visiting Singapore, Modi visited Brunei, where again regional economic cooperation was discussed. This visit comes within weeks after a ministerial roundtable between India and Singapore identified new areas of cooperation in areas such as:
- Digitization
- Sustainability
- Skills Development
- Health
- Advanced Manufacturing
- Connectivity
The diversity of the industries represented underscores the multi-dimensional, resilient nature of the India-Singapore relationship well beyond semiconductors and digital technologies. Building upon these, both countries look forward to unlocking the opportunities for innovation and growth in an increasingly complex world economy.
The Future of India-Singapore Collaboration
The world has become aggressively demanding for semiconductors and digital technologies-from drones used in agriculture to data centers being employed in campus-level applications.
With the never-ending demand for semiconductors, both India and Singapore are poised to capitalize on the future opportunities of the sector. Specialty chips, including high-value chips that power everything from advanced automobiles to smartphones, are highly specialized industries in Singapore and a critical part of Singapore's role in the global semiconductor industry. While Taiwan and South Korea are dominant in high-end chip manufacturing, Singapore is exceling at making chips that will be required for the next wave of products. 】【source 6】.
The partnership is to be two-way, where the country of Singapore would implement decades of semiconductor experience to actually support the recent growth aspirations of India within the sector. On the other side, India offers the companies of Singapore access to a huge and rapidly growing market. The Indian government has actually moved to upgrade infrastructure, ease regulations, and offer incentives in making the country more welcoming for the international tech firms.
Conclusion
Upon signing, these agreements mark a turning point in the relations between India and Singapore as both grow closer in semiconductors, digital technologies, and a host of other areas. At a time when the semiconductor industry has reached the cauldron of geopolitical flux, this coming together of India and Singapore isn't too early but exceedingly well-timed and strategic. Coming together enables both to bargain better for the fast-changing contours of global technology and manufacturing.
This deal is likely to boost India's "Make in India" campaign, accelerate the country's digital journey, and position the country as one of the vital contributors to the global semiconductor supply chain. For Singapore, this agreement has cemented it as one of the leading countries in manufacturing semiconductors, creating innovation within technology while strengthening its economic ties with one of the fastest-growing large economies in the world.
As the semiconductor race gets hot, the collaboration between India and Singapore will play an important role in shaping up the future of global technology. More than an economic alliance, this partnership is a strategic move that may just reshape the global tech production matrix over the coming years.
External Links:
- India's Semiconductor Mission
- Apple Starts iPhone Production in India
- Semiconductor Manufacturing in Singapore
- Make in India Initiative
- India-Singapore Partnership