India inks chip deal with Singapore

India and Singapore agreed to ramp up collaboration in semiconductors and digital technologies, seeking a bigger role in a global chip supply chain being reshaped by tensions between the US and China, according to Bloomberg.

During a two-day visit by Indian Prime Minister Narendra Modi to the city-state, the countries signed agreements to cultivate talent in chip design and manufacturing and facilitate Singaporean tech investment in India, according to a statement from the Indian government on Thursday. The nations will also work more closely together in cybersecurity, fifth-generation mobile networks, super-computing and artificial intelligence.

Singapore, India and Malaysia are among Asian economies that have emerged as beneficiaries of the prolonged US-China chip war that has rattled the global chip market, which is on track to hit $588 billion in sales this year. Both China and western countries are racing to establish stand-alone supply chains to avoid geopolitical risks, creating business opportunities for the industry.

While India’s semiconductor industry is in its infancy, Singapore has played a significant role in the sector for decades. The city-state is home to some of the largest chip manufacturing plants in Southeast Asia, hosting international names from NXP Semiconductors NV to Micron Technology Inc. The island nation boasts a legion of chip research and engineering talent as well as abundant venture capital for chip startups.

The tie-up also showcases Modi’s ambition to turn the world’s most populated country into a technology superpower, in which a strong semiconductor ecosystem is crucial. During his trip to Singapore he met with Prime Minister Lawrence Wong and is expected to meet with other key officials in the city-state.