Tatas to Select Singapore as Key Partner for Semiconductor Venture

12 Nov, 2024

Tata Sons is set to select Singapore as a key partner for its semiconductor ventures, as confirmed by Singapore's Minister for Home Affairs and Law, K Shanmugam. The announcement came after a meeting between Shanmugam and Tata Sons Chairman N Chandrasekaran. Shanmugam revealed that the semiconductor sector was a significant topic of discussion during their conversation. He, along with Tan See Leng, the Minister for Manpower and Second Minister for Trade and Industry, is visiting Singapore's financial capital on a day-long trip.

Shanmugam emphasized Singapore's established role as a "serious and reliable player" in the global semiconductor industry. He noted that the Tata Group has maintained a presence in Singapore for more than fifty years. Singapore holds a notable 20 percent share in global semiconductor equipment production, despite its relatively small size of just 670 square kilometers. The city-state is home to 25 semiconductor foundries, although the minister acknowledged that the sophistication of these foundries may not be the most advanced worldwide.

Shanmugam suggested that while Tata Sons has the freedom to collaborate with anyone globally, the company is likely to choose Singapore as a "key partner" for its semiconductor endeavors. Tata Group has ambitious plans to invest Rs 91,000 crore in a semiconductor facility in Gujarat and another Rs 27,000 crore in Assam. The company has already partnered with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) for this venture.

When asked about Niti Aayog's call for India to reconsider its decision to not join the Regional Comprehensive Economic Partnership (RCEP), Shanmugam refrained from providing a direct answer. He acknowledged India’s concerns regarding macroeconomic and political issues, noting that it remains uncertain whether those concerns have been addressed.

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