India is taking big steps to strengthen its semiconductor industry, and Singapore is playing a key role in this journey. Recently, Indian Prime Minister Narendra Modi visited Singapore and made some important agreements to boost India’s efforts in this high-tech field. Singapore, known for its strong semiconductor industry, is seen as both a partner and an inspiration for India’s ambitions.
Why Semiconductors Matter:
Semiconductors are the tiny chips that power nearly every modern electronic device—from smartphones to computers to cars. As technology becomes more advanced, the demand for semiconductors keeps growing. India, recognizing this, is working hard to build its own semiconductor industry and reduce its reliance on other countries.
India-Singapore Partnership:
During his visit, Modi and Singapore’s leader Lawrence Wong announced the “India-Singapore Semiconductor Ecosystem Partnership.” This partnership will help India grow its semiconductor sector while tapping into Singapore’s network of companies and expertise in the industry. Essentially, Singapore will share its know-how to help India speed up its progress.
Singapore already holds a powerful position in the global semiconductor market, accounting for 11% of all semiconductors made worldwide. It also produces 20% of the world’s semiconductor manufacturing equipment. With this strong foundation, it’s no surprise that India is looking to Singapore for inspiration.
Modi, during his visit, expressed how Singapore serves as a model for India. He even made a bold statement: “We aim to create multiple Singapores within India.” This shows just how high India is aiming.
India’s Ambitious Goals:
India has already started ramping up its efforts to become a global player in semiconductors. In 2021, India launched the India Semiconductor Mission, dedicating nearly $9 billion to semiconductor and display manufacturing. The goal is to develop a self-sufficient industry that can support the country’s growing tech sector.
In fact, India has already started building semiconductor manufacturing hubs. One of the latest is being developed in Gujarat, Modi’s home state, with a budget of over $390 million. This will be India’s fifth semiconductor hub, following other major projects, such as a $10 billion semiconductor plant planned by the Adani Group and Israel’s Tower Semiconductor in Maharashtra.
The Big Picture:
India’s goal is to transform itself into a major player in the global semiconductor industry. The country’s semiconductor market is projected to be worth $63 billion by 2026. But the semiconductor business is extremely complex, with production currently concentrated in countries like the US, South Korea, Taiwan, China, and Japan. India’s challenge is to build up its own infrastructure and expertise in a market dominated by these established players.
Looking Ahead:
Modi has vowed to make India a “manufacturing hub of semiconductors” during his third term as Prime Minister. The partnership with Singapore is just one of the steps toward achieving that dream. India is setting its sights high, aiming to create a strong, self-reliant semiconductor industry that can compete with the world’s top manufacturers. With Singapore’s help and India’s determination, this vision may soon become a reality.
