Tata Group Chooses Singapore as Key Partner for Semiconductor Initiative

Tata Sons has decided to choose Singapore as a key partner in its ambitious semiconductor plans, a senior government minister from Singapore confirmed. During a meeting with Tata Sons Chairman N. Chandrasekaran, Singapore's Minister for Home Affairs and Law, K. Shanmugam, highlighted that semiconductors were a major topic of discussion.

Shanmugam mentioned, “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 a partner but a key partner.”

Singapore has long been a reliable player in the global semiconductor industry, Shanmugam noted. The Tata Group, which has had a presence in Singapore for over 50 years, is likely to benefit from the country's strong semiconductor ecosystem. Singapore contributes to 20% of the global semiconductor equipment production, despite its small size of just 670 square kilometers. The country is home to 25 semiconductor foundries, although their level of sophistication may not be the highest globally.

The Tata Group’s semiconductor venture includes significant investments, with Rs 91,000 crore allocated for a facility in Gujarat and Rs 27,000 crore for another in Assam. This initiative also involves a partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC).

In a separate discussion, when asked about India's stance on joining the Regional Comprehensive Economic Partnership (RCEP), Shanmugam did not provide a direct answer. He noted that India’s decision to step away from the negotiations in 2019 was based on macroeconomic and political factors, and it remains uncertain if those issues have been resolved.

Shanmugam also spoke about the possibility of changes in global trade dynamics, especially with potential increases in import duties in the US. He emphasized the importance of being "nimble" in responding to such shifts. The minister also addressed the potential for international partnerships in cross-border payments, saying that like-minded countries might collaborate in the future.

As part of strengthening India-Singapore relations, Shanmugam pointed out that the ties now extend beyond trade to include cooperation in energy, semiconductors, and strategic security. He added that Singapore, despite its small size, has a unique ability to attract global business leaders and organizations.

Additionally, Singapore’s High Commissioner to India, Simon Wong Wie Kuen, mentioned that the Port of Singapore Authority (PSA) is exploring investment opportunities at the upcoming Wadhavan port in Maharashtra, once foreign stakeholders are invited. PSA already operates a terminal at India’s largest container port, JNPA, and is keen on expanding its investment in India.

The Singaporean ministers are also attending events such as the anniversary celebration of Singapore’s DBS Bank and a luncheon hosted by Temasek, Singapore’s investment arm. They are also meeting with industry leaders in a session organized by the Confederation of Indian Industry (CII), featuring notable figures such as Jamshyd Godrej, Zia Mody, and Naushad Forbes.

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