India Electronics and Semiconductor Association (IESA), the premier trade body representing the Indian Electronic System Design and Manufacturing (ESDM) industry, has entered into an agreement with Singapore Semiconductor Industry Association (SSIA) in order to establish and develop trade and technical cooperation links between the electronics and semiconductor industry of both countries.
The MoU opens opportunities for Singapore EDSM companies to shift some manpower intensive operations to India and Indian firms are benefited through setting up their operations in Singapore, providing them a better understanding of the trends and demands in the South East Asian markets, a statement said.
The Singapore government has introduced programs including incentives for locally conducted R&D along with infrastructure and human resource development programs for high-end manufacturing. Such developments in either economies make both markets conducive and attractive for investments.
The demand-supply gap is expected to widen up to US$300 billion by 2020 as the ESDM industry size is expected to reach US$400 billion while local production and services is estimated to be around US$100 billion. On the other hand, Singapore has approximately 40 IC design companies, 14 silicon wafer fabs and 20 assembly and test units.
Ashok Chandak, Chairman, IESA and Sr. Director NXP Semiconductors said, “Both Singapore and Indian markets are considered highly important markets in the global EDSM sector. There are emerging opportunities for Singapore companies to support the SPEED UP of the semiconductor fabs setup in India and also the electronics products creations as the demand continues to grow manifold in India.
Through this MOU and the Whitepaper on India-Singapore ESDM industry collaboration opportunities, the member companies of both associations can harness the business potentials and strengthen the trade and Investment promotions between Singapore and India.”