India a future design, innovation hub in semiconductor industry: Singapore business chief

India has positioned itself not just as a backend assembler but as a future design and innovation hub in the semiconductor industry, a top official of the Singapore Manufacturing Federation (SMF) has said.

In a commemorative publication released here on Wednesday, SMF President Lennon Tan wrote that strategic projects announced under the India Semiconductor Mission highlight a clear intent to build full-stack capabilities from design to fabrication.

Tan's comments were published in the 112-page coffee-table book “Celebrating 60 years of India-Singapore partnership”.

“The approved investments and pilot plants already in production reflect strong momentum. It’s encouraging to see India position itself not just as a backend assembler but as a future design and innovation hub,” said Tan.

He also highlighted a strong base of the semiconductor industry in Singapore and collaboration between the two countries in areas like joint skilling, streamlined equipment movement and R&D in chip design.

“These are practical steps towards building a resilient supply chain,” he underlined.

Tan, who heads over 5,000 company members in SMF, noted that Singapore and India both understand the importance of the semiconductor sector, and cooperation between the two countries is evolving accordingly.

SMF acts as a connector, facilitating business missions and joint ventures with Indian states like Tamil Nadu, Gujarat and Karnataka.

He elaborated, “Think long-term and think together. Whether you are a young entrepreneur in Pune or a precision engineer in Singapore’s Tuas industrial district, there’s opportunity in collaboration.” Tan also pointed out that the semiconductor sector is complex, but it rewards consistency and partnership. “Let’s continue building this shared industrial fabric – strong, smart, and future-ready.” Singapore companies can strengthen their collaboration with Indian stakeholders and provide value-added services – in semiconductors, Industry 4.0 solutions or furniture manufacturing, said Tan Soon Kim, Deputy Managing Director at Enterprise Singapore, a global business and investment promotion state agency here.

Singapore companies have thus far signalled their intent for long-term partnerships in India’s high-growth sectors like sustainability and infrastructure, including opportunities in green hydrogen, net-zero industrial parks, business parks and data centres, he said.

“Notably, manufacturing, especially for 4.0 and semiconductors, is a huge area of opportunity for Singapore businesses,” said Tan, pointing out that Singapore’s investment into India grew to SGD 109 billion in 2023, up 17 per cent on the year, a trend which is expected to continue in tandem with India’s rapid economic transformation.

Singapore and India have signed a Memorandum of Understanding (MoU) to cooperate in the semiconductor industry and digital technologies.

The MoU was signed in September 2024 to support India’s growing semiconductor industry while facilitating Singapore’s ecosystem of semiconductor companies and related supply chains to participate in the fast-growing Indian market, according to the Ministry of Trade and Industry.

Singapore remains India’s largest investor from the Southeast Asia region, contributing nearly USD 174.88 billion in cumulative foreign direct investment in the past 25 years, around 24 per cent of the total inflows into the country, wrote Piyush Gupta, the former CEO of DBS Group, in the book.

“India and Singapore are strengthening their role as digital finance leaders in the region by forging a strategic fintech corridor, linking India’s fast-growing financial landscape with Singapore’s globally connected ecosystem,” said Gupta. “This corridor acts as a gateway for India into ASEAN and the broader Indo-Pacific,” he underlined.

The book, published by Singapore-based Sun Media and supported by SMF and the High Commission of India in Singapore, was launched jointly by Indian envoy Shilpak Ambule and SMF President Tan. It is part of the ongoing celebrations for 60 years of India-Singapore diplomatic relations.