India and Malaysia are working together to create semiconductor partnerships across Asia. They are using their strengths to create new things, boost the economy, and keep the supply chain strong. People in both countries and the area see this partnership as an essential part of their economic ties. Both countries will benefit from joint ventures, technological partnerships, and supply chain integration.
More and more people in the semiconductor business are working together.
Malaysia wants to work more closely with India in the semiconductor industry, believing this will help it become a major player in India’s semiconductor growth story. Liew Chin Tong, the Deputy Minister of Investment, Trade, and Industry in Malaysia, often emphasizes how the semiconductor ecosystems of the two countries work well together. India is good at coming up with new ideas, designing things, and building new factories. Malaysia is good at putting things together, testing them, and packaging them.
Leaders from Malaysia and India are seeking to formalize this relationship by signing a memorandum of cooperation (MoC). This should make it easier for them to work together on chip design, making chips, and research and development. Malaysia believes it could work with ASEAN countries and form trilateral business partnerships, as it already has a strong industrial base and advanced technology.
Plans for investments and strategy
The India Semiconductor Mission (ISM) has helped India quickly build semiconductor manufacturing infrastructure. It has given the go-ahead for several assembly, testing, and fabrication plants in states such as Odisha, Punjab, Andhra Pradesh, and Uttar Pradesh. By 2030, the semiconductor market in India is expected to be worth $109 billion, up from $38 billion in 2023. Now it will be easier for companies to work together.
The semiconductor industry in Malaysia accounts for about 13% of the country’s GDP and has attracted $6 billion in investment. The Government wants to capitalize on this trend by combining its assembly and testing expertise with India’s design and manufacturing capabilities. The partnership is likely to increase trade between the two countries, which is now worth about $18 billion. It will also make trade much bigger by working with semiconductor companies.
In terms of the area and the world
The partnership aligns with broader regional goals, such as improving ties between ASEAN and India and the global semiconductor supply chain’s push to move away from countries like China and Taiwan. RCEP and CPTPP are examples of multilateral trade agreements that both countries are part of. These agreements make it easier for the two countries to work together and trade.
Malaysia’s wise choice to work with India at multiple levels, including state- and industry-specific interactions, shows that it understands the scale and diversity of India’s market. ASEAN sees this semiconductor partnership as a way to bring peace, technological progress, and economic growth to the region, as well as a chance to make money.
Looking Forward
The growing partnership between India and Malaysia could change the game in the Asia semiconductor ecosystem as semiconductor manufacturing becomes increasingly important worldwide. By discussing and agreeing on how to work together, such as plans for joint ventures in advanced chip assembly and packaging, both countries are becoming significant players in this high-tech field.
This partnership should create thousands of jobs, accelerate the development of new technologies, and strengthen the supply chain. This will make India and Malaysia the best partners in Asia’s rapidly evolving semiconductor industry.