Seizing the Moment

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India and Singapore agreed Thursday to strengthen their partnership in developing and manufacturing semiconductors and digital technologies, a collaboration that analysts say is part of a broader effort to tap into new opportunities created by the US-China trade war that has disrupted global chip supply chains, Bloomberg reported.

The two countries signed a series of deals during a two-day visit by Indian Prime Minister Narendra Modi to the city-state. These memorandums of understanding included cooperation in key areas, such as semiconductors, skills development and healthcare.

Officials of both countries said the agreements are aimed at developing talent in chip design and manufacturing, while encouraging Singaporean tech investments in India, especially in emerging areas such as cybersecurity and artificial intelligence.

This partnership can also help both nations overcome “common challenges,” such as climate change, aging populations and public health, they added.

The agreements come as Singapore, India, and Malaysia emerge as beneficiaries of the prolonged US-China trade war and its impact on the global chip market in which sales are projected to reach $588 billion this year.

Both China and Western nations are racing to establish independent supply chains to mitigate geopolitical risks, creating new business opportunities.

Singapore accounts for 10 percent of the world’s chip production and 20 percent of global semiconductor equipment production, making it a valuable partner for India as it grows its own semiconductor manufacturing base, according to CNBC.

India remains the world’s fastest-growing major economy, but its gross domestic product per capita lags behind developed economies, such as the US and China.

Observers noted that Modi’s visit underscored his ambition to elevate India’s position in the global semiconductor market and digital technology sector.

They added that Singapore can provide expertise to help India, which is building its semiconductor capabilities with a $21-billion plan, fast-tracking its development.

Apple and other tech giants are already investing in Singapore’s state-of-the-art manufacturing facilities, while India has made strides in attracting investments, with companies like Foxconn and Micron Technology set to bolster India’s semiconductor production by 2025.