India and Singapore signed on Thursday a Memorandum of Understanding (MoU) to collaborate on semiconductors, aiming to strengthen Singaporean firms' involvement in Indian supply chains. The agreement was signed during Indian Prime Minister Narendra Modi's two-day visit to Singapore. Both countries will leverage their complementary strengths in the semiconductor sector to enhance supply chain resilience and workforce development. Singapore, a major player in the global semiconductor industry, accounts for 11 per cent of the market and manufactures 20 per cent of global semiconductor equipment. Semiconductors are a strategic priority for India, with a $10 billion package in place to boost its semiconductor industry and compete with countries like Taiwan. India's semiconductor market is projected to reach $63 billion by 2026. In February, India approved the construction of three semiconductor plants worth over $15 billion by firms such as Tata Group and CG Power. These plants will manufacture and package chips for sectors like defence, automotive, and telecom. In addition to the semiconductor MoU, three other agreements were signed covering digital technologies, education and skills development, and health and medicine. Attribution: Reuters Subediting: M. S. Salama
