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During his 2025 visit to India, Singapore President Tharman Shanmugaratnam announced plans to collaborate with India on semiconductor manufacturing and the creation of a semiconductor ecosystem, marking the 60th anniversary of diplomatic ties between the two nations.

Singapore’s Semiconductor Landscape

• Contribution to Economy: Accounts for ~8% of Singapore’s GDP.
• Global Standing:
  • Produces 10% of global semiconductor output.
  • 5% of global wafer fabrication capacity.
  • 20% of global semiconductor equipment production.
• Comprehensive Ecosystem: End-to-end capabilities from IC design to packaging and testing.
• Infrastructure: Four wafer fabrication parks with advanced facilities.
• Current Limitation: Focused on mature-node chips (28 nm+); lacks high-end logic chip manufacturing (7 nm or below).

India’s Semiconductor Sector

• Market Size (2024): Valued at USD 52 billion; projected to reach USD 103.4 billion by 2030.
• Import Dependency: ~85% of semiconductor needs met through imports.
• Export-Import Gap (2022): USD 5.36 billion (imports) vs. USD 0.52 billion (exports).

India's Advantages:

• Skilled Talent Pool: Large number of STEM graduates.
• Cost Efficiency: Lower manufacturing and operational costs.
• Geopolitical Opportunity: Global supply chain diversification away from China.

Government Initiatives:

• India Semiconductor Mission (ISM)
• Semicon India Programme
• Display & Semiconductor Fab Schemes
• SPECS (Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors)

Foreign Collaborations:

• MoUs with US, Japan, and European Commission.
• Tata–Powerchip (Taiwan) collaboration for a fab in Dholera, Gujarat.

How Singapore Can Support India’s Semiconductor Vision

• Manufacturing Partnerships:
  • Collaborations with Singaporean firms for assembly and testing services.
  • Access to Singapore's advanced manufacturing technologies.
• Talent Development:
  • Academic exchanges in microelectronics and semiconductor engineering.
  • Joint research and PhD programs.
• Infrastructure Development:
  • Replication of Singapore-style wafer fab parks in India.
  • Joint ventures to build specialized semiconductor industrial zones.
• Technology Access & Innovation:
  • Transfer of advanced technologies and critical semiconductor materials.
  • Collaboration on new-generation tech solutions (e.g., AI chips, advanced computing).

Additional Areas of Bilateral Cooperation

• Digital Economy: Exploring data corridor between GIFT City (India) and Singapore.
• Sustainability: Cooperation on green hydrogen, sustainable aviation fuel, and renewable energy.

Strategic Partnership: Upgraded to Comprehensive Strategic Partnership in 2024.