India and Singapore are building a resilient semiconductor supply chain
Domestic politics may be a key issue for the ruling NDA alliance, however, it has not taken away Prime Minister Narendra Modi’s focus on constantly working on fine-tuning India’s foreign policy. PM Modi recently was in Brunei a first for any Indian Prime Minister on a bilateral state visit, to a country located strategically in the South China Sea.Brunei's visit was topped by the PM’s visit to Singapore, an important technology ally for India in the region. India and Singapore will be entering into the 60th year of diplomatic relationship next year and both countries have decided to upgrade their existing bilateral partnership to a Comprehensive strategic partnership, which would in turn expand the areas of cooperation.
One of the key focus, during PM Modi’s visit to Singapore was expanding the digital cooperation between the countries. The joint statement released read “Both Prime Ministers welcomed the signing of the MoU on cooperation in the field of Digital Technologies and affirmed common interests in data, AI and cybersecurity. Building on this, both Prime Ministers agreed to deepen collaboration in the digital space, including in facilitating trusted cross-border data flows, cybersecurity, and the interoperability of digital systems.” A crucial element of the partnership was a demonstration under the trade trust framework. Singapore is home to many large Technology companies, many of whom have regional headquarters in the island state, with the business geography, spread all across Asia primarily India.
Advance technology manufacturing and semiconductors formed another crucial element of the PM‘s visit. The statement read “Both Prime Ministers agreed to explore cooperation in the area of critical and emerging technologies. Both Prime Ministers agreed that advanced manufacturing, particularly in developing resilient semiconductor supply chains, can be a new pillar of bilateral cooperation.
Both Prime Ministers welcomed the signing of the MoU on the India-Singapore Semiconductor Ecosystem Partnership. Immediately after the PM visited Singapore the US government also announced a new partnership with India to explore supply chain opportunities in India. Funded under the International Technology Security and Innovation (ITSI) Fund, created by the CHIPS Act of 2022 (CHIPS Act) of the US, it allows the department to spend some money on developing a trusted supply chain ecosystem with partners and allies. A US State Department press release read, “The initial phase includes a comprehensive assessment of India’s existing semiconductor ecosystem and regulatory framework, as well as workforce and infrastructure needs. The state anticipates that key Indian stakeholders, such as state governments, educational institutions, research centres, and private companies, will participate in this analysis steered by the India Semiconductor Mission. The insights gained from the assessment will serve as the basis for potential future joint initiatives to strengthen and grow this critical sector. The United States and India are key partners in ensuring the global semiconductor supply chain keeps pace with the global digital transformation currently underway. Manufacturing of essential products ranging from vehicles to medical devices relies on the strength and resilience of the semiconductor supply chain.”
This week India also hosted SEMICON a global conference that attracts investments in the Indian semiconductor ecosystem. India is trying to attract investments for a crucial component of most modern equipment and machinery called chips. The recent visits by the PM to Singapore and the Memorandum of Understanding with the US may provide the much-needed kickstart for India’s semiconductor ecosystem.
(The writer is a policy analyst; views expressed are personal)
