‘Advance our partnership in semiconductors’: India, Malaysia pledge deeper semiconductor push

Prime Minister Narendra Modi wrapped up a two-day official visit to Malaysia on 7–8 February, responding to an invitation from Malaysian Prime Minister Dato’ Seri Anwar Ibrahim. Both the nations pledged to deepen their semiconductor ties as the Indian Ocean neighbours ramp up trade and security links.          

PM Narendra Modi reached Malaysia on Saturday where he inked a number of agreements with his Malaysian counterpart, including deals on renewable energy, health care and artificial intelligence.                        

Discussions centred around security

A central element of the discussions centred on security, with both leaders agreeing to reinforce cooperation in counter-terrorism, intelligence sharing and maritime security to tackle shared concerns in the Indo-Pacific. PM Modi emphasised that defence ties would be expanded to contribute more effectively to regional stability.  

“Along with AI and digital technologies, we will advance our partnership in semiconductors, health, and food security,” PM Modi said.  

Sixth position worldwide in semiconductor exports

“This meeting and these exchanges are very vital, very strategic and critical to advance and enhance relations between India and Malaysia,” the Malaysian Prime Minister added at a news conference in Malaysia’s administrative capital Putrajaya.

Standing at the sixth position worldwide in semiconductor exports, Malaysia contributes around 25 per cent of gross domestic product, according to Malaysian government figures.

India’s foreign ministry said the Southeast Asian nation had a “very strong semiconductor ecosystem”.

Collaboration with Malaysia 

“They have almost 30 to 40 years of experience in those areas,” the ministry added in a statement ahead of Modi’s arrival.

“Our companies are… interested in collaborating with Malaysia,” it said, including in research and development and building manufacturing and testing plants.

Previous year, India exported at least $7.32 billion goods, mainly in engineering and petroleum products, according to the India Brand Equity foundation.  

Imports from Malaysia amounted to $12.54 billion, mainly minerals, vegetable oil and electrical machinery and equipment.

PM Modi highlighted the CEO Forum held on the sidelines, which had unlocked promising avenues for trade and investment, and affirmed that the partnership would drive “economic transformation based on strategic trust.”

“This living bridge of three million people is one of our greatest strengths,” PM Modi said, noting that welfare measures for the community provide bilateral ties with a “humane foundation”.