India and Singapore Strengthen Cooperation on Artificial Intelligence and Semiconductors

Prime Minister Narendra Modi and Singaporean Minister Lawrence Wong have vowed to strengthen cooperation between their countries in the fields of artificial intelligence and semiconductors, amidst growing tensions with the US over trade policies. The two countries have signed new industry agreements and are accelerating trade partnerships to counter the impact of punitive US tariffs. Singapore's role as a key player in the global chip production and semiconductor equipment output has made it an ideal partner for India's ambitions to roll out its first made-in-India semiconductors by year-end.

Key Takeaways:

• India and Singapore have pledged to strengthen cooperation in artificial intelligence and semiconductors, with new industry agreements signed to accelerate trade partnerships.
• The two countries have inks new pacts spanning shipping, civil aviation, and emerging technologies, with cooperation extending to state-level skill centers in areas such as aviation and semiconductors.
• Prime Minister Modi highlighted Singapore's role in establishing a National Centre of Excellence for Skilling in Chennai, which will help develop manpower for advanced manufacturing.
• The Semiconductor Ecosystem Partnership agreement signed last year has given a new direction to research and development, with enthusiastic participation of Singaporean companies in the 'Semicon India' conference.
• The Bilateral Comprehensive Economic Cooperation Agreement and the Free Trade Agreement with ASEAN will be reviewed in a time-bound manner to accelerate mutual trade.
• Gujarat's GIFT City is helping to connect stock markets in both countries, boosting financial integration.

Statistics:

• Singapore accounts for about 10% of global chip production and 20% of semiconductor equipment output.
• Bilateral trade between India and Singapore stood at $34.26 billion in 2024-25.
• The US has imposed punitive tariffs on Indian imports, doubling levies to 50%.
• India aims to roll out its first made-in-India semiconductors by year-end.

Sources:

• Bloomberg
• Hindustan Times
• Indian government data