India and Singapore have signed a Memorandum of Understanding (MoU) that will see the two countries work together to strengthen their respective semiconductor ecosystems.

The agreement was signed during Indian Prime Minister Modi’s two-day visit to Singapore. The two countries also agreed to collaborate on other issues, including digital technologies, skills, and health care.

Currently, around 20 percent of global semiconductor equipment is manufactured in the city-state, whilst the Indian government has passed a number of pieces of legislation to boost its domestic semiconductor sector.

In February 2024, it was reported that the Indian government had received 18 proposals for the construction of semiconductor fabs as a result of schemes aimed at boosting semiconductor manufacturing in the country.

These schemes include the Modified Programme for Semiconductors and Display Fab Ecosystem, an 828 billion rupee ($10bn) scheme that was authorized by the Indian government in December 2021. The program allows companies to apply for up to 50 percent of capital costs for eligible semiconductor and display manufacturing projects.

The following month, the government approved three proposals to build semiconductor manufacturing plants in the country worth a combined 1.26 trillion rupees ($15.2 billion), having previously also green-lit a Micron ATMP (assembly, testing, marking, and packaging) facility.

"Singapore and India will leverage complementary strengths in their semiconductor ecosystems and tap on opportunities to build resilience in their semiconductor supply chains," said Singapore's trade ministry in a statement.

"This will include government-led policy exchanges on ecosystem development, supply chain resilience, and workforce development."