On March 16, 2024, Prime Minister Narendra Modi spoke at a media conclave reaffirming India’s dedication to turning into a semiconductor energy inside the subsequent 5 years. The authorities launched the Indian Semiconductor Mission (ISM) in 2021, allocating ₹76,000 crore for semiconductor manufacturing, packaging, and design models. The ISM is a strategic initiative aimed toward bolstering India’s semiconductor ecosystem and establishing the nation as a world electronics manufacturing and design hub. While the ISM enjoys a specialised and impartial enterprise standing, it’s below the general purview of the Digital India Corporation.

Semiconductors are crucial parts in cutting-edge applied sciences similar to electrical autos, manufacturing unit automation, Artificial Intelligence, and the IT sector. They energy an enormous array of digital gadgets, from smartphones and laptops to family home equipment. Due to the continuing United States (US)-China semiconductor competitors and the Covid-19 pandemic-induced disruptions, main economies worldwide are creating their capabilities on this sector. The pandemic highlighted the significance of semiconductor parts in quite a few companies as additionally the truth that many of the chip manufacturing is concentrated in international locations similar to Taiwan, Japan, Malaysia, Singapore, the US and China. Therefore, it’s pure for India, now the third largest economic system on the earth, to determine itself as a semiconductor energy.

International collaboration emerges as an important issue for India’s development on this sector. Malaysia and Singapore, with their well-established electronics manufacturing sectors, stand out as India’s potential key companions. In his tackle to the Indian neighborhood in Kuala Lumpur on March 27 throughout his go to to the nation, exterior affairs minister S Jaishankar underscored the significance of stronger India-Malaysia semiconductor cooperation — some extent reiterated throughout his go to a couple of days in the past in Singapore as nicely.

Collaboration within the semiconductor sector can’t solely elevate ties to the subsequent stage but in addition consolidate their positions within the extremely aggressive and very important semiconductor enterprise. A scientific and long-term partnership between India and its Southeast Asian companions, Malaysia and Singapore, and East Asian companions, similar to Taiwan, has the potential to make a qualitative addition to India’s Act East coverage.

India and Singapore have established joint ventures and funding initiatives to develop semiconductor manufacturing prowess. Singapore’s competence in exact engineering and provide chain administration, coupled with India’s expert workforce and market measurement, can represent a mutually helpful partnership to speed up the event of semiconductor manufacturing services.

Large international firms similar to Intel, Infineon, and Micron have invested and developed meeting and testing services in Penang, Malaysia’s key semiconductor manufacturing hub, to streamline the complete manufacturing course of. This reinforces Malaysia’s place as an important participant within the improvement and provide of semiconductor merchandise to the worldwide market, in addition to its place within the semiconductor provide chain.

Malaysia can play a crucial function in strengthening the availability networks required for India’s semiconductor manufacturing targets. Malaysia’s intensive electronics manufacturing ecosystem may also help safe the availability of crucial supplies and parts wanted for semiconductor fabrication. This contains uncooked elements, specialised chemical substances, and quite a few parts which might be important to the chip manufacturing course of. Strengthening these provide chains may also help to minimise dangers and prices, and enhance the effectivity and reliability of semiconductor manufacturing.

Research and Development (R&D) is one other space the place these international locations may vastly profit from Singapore’s high-tech ecosystem, Malaysia’s expertise in electronics manufacturing, analysis institutes and innovation centres from each international locations can work with Indian establishments and expertise companies to conduct up to date semiconductor analysis.

Building capacities through expertise alternate initiatives play an important function within the semiconductor sector, which calls for extremely specialised abilities. Joint coaching programmes, internships, and workshops on semiconductor design, manufacturing, and testing might be applied, utilizing Malaysia-Singapore’s sturdy technical training system and India’s giant pool of engineering expertise.

Bilaterally, India can work with each Malaysia and Singapore in outlining an optimum coverage that promotes the expansion and sustainability of the semiconductor business. This may entail working collectively on commerce guidelines, tariffs, and regulatory requirements to make sure clean cross-border flows of semiconductor merchandise and applied sciences. These collaborations also can open up new markets and develop their international attain. By combining forces, all three international locations can higher place themselves to satisfy the rising international demand for semiconductors, which is spurred by developments in expertise and the rising digitalisation of economies worldwide.

In essence, India-Malaysia-Singapore cooperation within the semiconductor sector presents a transformative alternative to redefine international technological management. India can work each as an enormous market and a supply of human useful resource provide in constructing capacities within the semiconductor sector. By pooling assets, abilities, and geographical benefits, these international locations can improve financial resilience and contribute considerably to a extra strong international semiconductor ecosystem. This partnership underscores the significance of worldwide cooperation in addressing advanced international challenges and fostering innovation on a world scale.

This article is authored by Rahul Mishra, senior analysis fellow, German-Southeast Asian Center of Excellence for Public Policy and Good Governance, Thammasat University, Thailand, and affiliate professor, Centre for Indo-Pacific Studies, Jawaharlal Nehru University, New Delhi.