Tata Group to Forge Strong Semiconductor Partnership with Singapore

In a significant development for India’s semiconductor sector, Tata Sons is poised to select Singapore as a “key partner” for its ambitious semiconductor plans, according to a statement made by Singapore's Home Affairs and Law Minister, K. Shanmugam. The announcement follows a crucial meeting between Shanmugam and Tata Sons Chairman N. Chandrasekaran, where the topic of semiconductor collaboration took center stage.

Shanmugam addressed the media following the meeting, highlighting Singapore's growing prominence in the semiconductor industry. “If they (Tatas) want to, they can do business with anybody in the world. It's not that they need to do it in Singapore, but they will, I think, choose Singapore as a key partner, not only partner, but as a key partner,” Singapore's Home Affairs and Law Minister, K. Shanmugam remarked. This declaration underlines Singapore's role as an integral player in the global semiconductor market and the growing ties between the two nations.

Singapore’s Strategic Position in Semiconductor Production

Singapore’s long-standing presence in the semiconductor sector was emphasized during the minister's visit. He pointed out that the Southeast Asian country commands a substantial 20% share in global semiconductor equipment production. Despite its relatively small size of just 670 square kilometers, Singapore is home to 25 semiconductor foundries, marking it as a serious and reliable player in this highly competitive market.

Tata Group's involvement with Singapore in this sector is not new. The company has been operational in the city-state for over five decades, contributing to the robust economic and industrial ties between the two nations. With Singapore’s well-established infrastructure and advanced manufacturing capabilities, the city-state is well-positioned to support Tata’s semiconductor ambitions.

Tata Group's Semiconductor Investment Plans

The Tata Group has been making significant strides in the semiconductor manufacturing space. The conglomerate has committed a massive investment of ₹91,000 crore for a state-of-the-art semiconductor manufacturing facility in Gujarat, and ₹27,000 crore for another facility in Assam. This is in partnership with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC), one of the leading players in the industry. These investments underscore the Tata Group's long-term vision of making India a key hub for semiconductor production.

Future Trade and Regional Partnerships

During the visit, Shanmugam also commented on India’s stance regarding the Regional Comprehensive Economic Partnership (RCEP). He acknowledged that India had withdrawn from the RCEP negotiations in 2019 due to macroeconomic and political reasons but did not comment on whether these concerns had been addressed. This leaves the door open for potential future discussions on India’s participation in the trade pact.

Deepening India-Singapore Ties Beyond Trade

Shanmugam highlighted the expanding scope of the India-Singapore relationship, emphasizing that the partnership is moving beyond traditional trade concessions to encompass strategic areas like energy, semiconductors, and security. The minister underscored Singapore’s ability to attract global businesses and thought leaders despite its size, positioning it as a crucial ally for India in various sectors.

As part of the growing partnership, the Singaporean government is also exploring investment opportunities in India's upcoming greenfield Wadhavan port in Maharashtra. The Port of Singapore Authority (PSA), which already operates a terminal at Jawaharlal Nehru Port (JNPA), is keen on expanding its presence in India.

Minister’s Visit and Engagement with Industry Leaders

The ministers’ visit also included meetings with various business leaders, including prominent industry figures like Jamshyd Godrej, Zia Mody, Naushad Forbes, and R Mukundan, in addition to a luncheon hosted by Temasek, Singapore’s investment arm. The delegation's activities underline the growing ties between the two nations, particularly in strategic sectors.