India eyes becoming semiconductor powerhouse with new tie-ups

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The governments of India and Singapore have collaborated to develop the semiconductor ecosystem for advanced manufacturing. Simultaneously, India and the United States are promoting strategic semiconductor supply chain partnerships and building new collaborations around artificial intelligence (AI) and advanced computing.

The partnerships come at a time when India is looking to become a semiconductor powerhouse, with Prime Minister Narendra Modi setting ambitious goals to boost the electronics sector from $155 billion to $500 billion by 2030 as part of the country’s push to become self-reliant in manufacturing. According to the Ministry of Electronics & Information Technology (MEITy), the rapid expansion targets to reduce reliance on imports. As the demand for semiconductors surges worldwide, India’s burgeoning semiconductor infrastructure is expected to drive innovation, create jobs, and secure the country’s position as a significant player in the global digital economy.

Singaporean President Tharman Shanmugaratnam was in India earlier in January and held separate talks with Prime Minister Narendra Modi, with a broad focus on further expanding bilateral ties.

“Earlier this evening, met the President of Singapore, Mr. Tharman Shanmugaratnam. We discussed the full range of the India-Singapore Comprehensive Strategic Partnership. We talked about futuristic sectors like semiconductors, digitalisation, skilling, connectivity and more. We also spoke on ways to improve cooperation in industry, infrastructure and culture,” Narendra Modi said in an X post. 

Semiconductors are crucial to modern technology, powering devices from smartphones to advanced industrial systems. The global chip shortage during the COVID-19 pandemic highlighted the urgent need for more diverse and resilient supply chains. 

The Indian state of Odisha has partnered with Singapore-based organizations to boost skill development, driving industrial and economic growth. Odisha signed eight memoranda of understanding (MoUs) with the Singapore government in key sectors including the fintech ecosystem, semiconductors, and skill development.

The MoU on semiconductor skilling in Odisha will assess the demand for skilled workers in India’s semiconductor sector and available job opportunities. It allows Singapore to design a curriculum based on its expertise in areas like semiconductor 
fundamentals, processes, metrology, devices, integrated circuits, industrial automation, cleanroom technology, and design engineering.

India’s recent collaborations highlight the emerging shifts in the global technological landscape, signaling a potential dramatic reconfiguration of global power in the semiconductor industry. As China intensifies efforts to protect and strengthen its semiconductor sector, India is taking ambitious strides to establish its chip manufacturing ecosystem. These moves could reshape the balance of technological influence and innovation in the years to come, especially with the U.S. indicating as much as a 60% tariff on Chinese imports, while considering India as an ally.

India advances collaboration with the US

With the U.S., India is looking to deepen collaboration across key sectors, including semiconductors, biotechnology, cybersecurity, space technology, and advanced telecommunications. India and the U.S. are strengthening their technology partnerships amidst the ongoing trade war between the world’s two largest economies. At the same time, the Modi-led Indian government is positioning India as an alternative for global tech companies seeking to reduce reliance on China in their supply chains.

In a January statement, the White House said that the two nations are building on the U.S.-India semiconductor supply chain and innovation partnership. The countries are promoting secure, resilient, and sustainable semiconductor supply chains through collaboration between the U.S. Department of Commerce and the India Semiconductor Mission, MEITy, including facilitating investments in semiconductor manufacturing. The countries are also strengthening research and development collaboration around state-of-the-art semiconductor and packaging technologies.

The two nations are advancing “A semiconductor partnership between the U.S. Space Force and 3rdiTech to establish a compound semiconductor fabrication plant in India to manufacture infrared, gallium nitride, and silicon carbide 
semiconductors that will be used in national security-relevant platforms. This includes favorably reviewing a technical assistance agreement and export licenses to promote technology transfers,” the White House statement informed. 

India and the U.S. are also working on developing a government framework to promote reciprocal investments in AI and align protections for its diffusion; enhancing cooperation on AI’s national security applications following the U.S. National Security Memorandum; fostering sustained engagement on Quantum Information Science and Technology (QIST), and initiating new quantum science cooperation, including workshops on post-quantum cryptography and technical visits to U.S. quantum institutions.

Big leap in space, defense technology

India’s External Affairs Minister, S Jaishankar, recently said, “Our (India-U.S.) relationship will be heavily based on technology. It will have a much bigger space component because the space domain is just beginning to open up. Defence is a crucial area.”

According to a Reuters report, seven Indian startups have been selected for an India-U.S. space and defense collaboration, opening up strategic opportunities for Indian firms. The companies, including space imaging firm KaleidEO, rocket maker EtherealX, and AI company Shyam VNL, will work on defense and dual-use technologies, partnering with the U.S. Defense Innovation Unit and other agencies on satellite observation and emerging space technologies.

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