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India and Singapore sign semiconductors and digital cooperation pacts

2024-09-10

India and Singapore have signed a significant bilateral agreement to collaborate in the semiconductor industry, aiming to boost India’s growing semiconductor sector while facilitating the entry of Singaporean companies into the Indian market. This development took place during Prime Minister Narendra Modi's two-day visit to Singapore, where both nations agreed to strengthen their relationship to a ‘Comprehensive Strategic Partnership’ ahead of the 60th anniversary of diplomatic ties next year. As part of the visit, several MoUs were signed, covering areas like semiconductors, digital cooperation, education, skills development, and healthcare. PM Modi, alongside Singaporean Prime Minister Lawrence Wong, visited AEM Holdings Ltd's semiconductor facility, where they were briefed by the Singapore Semiconductor Industry Association.

Singapore, known for its expertise in producing low-end chips essential for electric vehicles and smartphones, has a semiconductor industry that constitutes 7-8% of its GDP and contributes 10% to global semiconductor output. The collaboration will support India’s aim to establish itself as a global semiconductor manufacturing hub, particularly in sectors like electronics and electric vehicles.

The digital cooperation pact focuses on governance frameworks for data protection, enabling secure data flows and cooperation between cybersecurity agencies in both countries. Additionally, both leaders discussed enhancing partnerships in sustainability, green hydrogen, green ammonia, and emerging critical technologies.

Singapore is India's sixth-largest trading partner, with bilateral trade worth $35.3 billion. PM Modi also held meetings with key business leaders from major firms such as Blackstone Singapore, Temasek Holdings, and Singapore Airlines.

(business standard)