Friday, Sep 5, 2025
English News
  • Hyderabad
  • Telangana
  • AP News
  • India
  • World
  • Entertainment
  • Sport
  • Science and Tech
  • Business
  • Rewind
  • ...
    • NRI
    • View Point
    • cartoon
    • My Space
    • Olympics
    • Education Today
    • Reviews
    • Property
    • Lifestyle
E-Paper
  • NRI
  • View Point
  • cartoon
  • My Space
  • Reviews
  • Education Today
  • Property
  • Lifestyle
Home | Editorials | Editorial Semiconductor Push

Editorial: Semiconductor push

The MoU with Singapore will help make India an attractive destination for semiconductor manufacturing

By Telangana Today
Published Date - 6 September 2024, 11:59 PM
Editorial: Semiconductor push
whatsapp facebook twitter telegram

The bilateral partnership agreement on semiconductors, signed during Prime Minister Narendra Modi’s just-concluded visit to Singapore, has a huge geostrategic significance at a time when the country is making conscious efforts to reduce its dependence on China for supply of semiconductor chips. The memorandum of understanding (MoU) on the semiconductor ecosystem partnership envisages cooperation to support India’s growing semiconductor industry while facilitating Singapore’s companies and supply chains to enter the Indian market. The pact will create a platform to better connect and strengthen complementary semiconductor ecosystems of the two sides. This marks a significant step forward in making India an attractive destination for semiconductor manufacturing. Given the growing geopolitical tensions due to China’s aggressive moves in the Taiwan Strait and the South China Sea, there is an urgent need for India to develop its semiconductor ecosystem. Unlike India, Singapore has a well-established semiconductor industry, accounting for nearly 10% of global semiconductor output and 5% of global wafer fabrication capacity. Nine of the world’s top 15 semiconductor firms have set up shop in Singapore, and the semiconductor sector contributes significantly to the country’s economic growth. It has players in all segments of the semiconductor value chain: integrated circuit (IC) design, assembly, packaging and testing; wafer fabrication and raw material production. India is a latecomer to this high-tech industry, importing around 80% of its required semiconductors. The promise of a booming domestic semiconductor industry would potentially reduce its import bill, while also creating jobs.

Though India traditionally had a strong base for the semiconductor design industry, the hardware manufacturing has remained elusive. Over the last 15 years, several consortiums made multiple attempts at chip making but things never worked out. There is scope for collaboration with Singapore in talent development and knowledge-sharing about best practices in managing semiconductor industrial parks. India’s abundant land and competitive labour costs could encourage Singaporean semiconductor companies to look at the country for their expansion plans. Building semiconductors domestically is important for India’s vision to emerge as an electronics manufacturing hub and eventually reduce its imports from foreign countries, especially China – which remains the leading destination for the sector. Semiconductors have an all-pervading impact across sectors like automobiles, smartphones, laptops, tablets, consumer durables, gaming consoles and other electronic products. Promoting semiconductor fabs through a set of attractive incentives has become a geopolitical priority now. Through an incentive policy, India seeks to reshape supply chains to cut its reliance on China amid a global chip shortage that has impacted the production of goods. In the current geopolitical scenario, trusted sources of semiconductors and displays hold strategic importance and are key to the security of critical information infrastructure. The global chips market is expected to grow to $1 trillion by 2030. Resource-intensive, it requires highly skilled workers and is already facing a competence gap. Any country that does not learn to make semiconductors will lag.


  • Follow Us :
  • Tags
  • China
  • MoU
  • Prime Minister Narendra Modi
  • semiconductor industry

Related News

  • India, Singapore united against terrorism, says PM Modi

    India, Singapore united against terrorism, says PM Modi

  • China unveils new weapons at WW2 victory parade; Xi calls for ‘global peace’

    China unveils new weapons at WW2 victory parade; Xi calls for ‘global peace’

  • Rahul Gandhi urges PM Modi for special relief package for flood-hit northern states

    Rahul Gandhi urges PM Modi for special relief package for flood-hit northern states

  • PM Modi set to visit Mizoram, Manipur on Sept 13

    PM Modi set to visit Mizoram, Manipur on Sept 13

Latest News

  • Hyderabad sports roundup: Snehit, Sreeja for Asian Table Tennis

    3 mins ago
  • Doubles shuttler Jwala Gutta distributes kit to Telangana fencing squad members

    17 mins ago
  • Mahadev crushes Mayura as Preethesh hits unbeaten 148 in HCA C-Division championship

    28 mins ago
  • Yuvraj launches innovative multi-city Indian Golf Premier League

    36 mins ago
  • The Gambits, a documentary on Global Chess League

    42 mins ago
  • Traffic curbs in Hyderabad for Ganesh idol immersion on Saturday

    47 mins ago
  • 10 indian boxers get bye in first round of World Boxing Championships

    50 mins ago
  • Pro Kabaddi League: Haryana Steelers captain Jaideep’s indefatigable spirit

    59 mins ago

company

  • Home
  • About Us
  • Contact Us
  • Privacy Policy

business

  • Subscribe

telangana today

  • Telangana
  • Hyderabad
  • Latest News
  • Entertainment
  • World
  • Andhra Pradesh
  • Science & Tech
  • Sport

follow us

  • Telangana Today Telangana Today
Telangana Today Telangana Today

© Copyrights 2024 TELANGANA PUBLICATIONS PVT. LTD. All rights reserved. Powered by Veegam