NEW DELHI — India’s push to build a homegrown semiconductor industry is rapidly attracting companies from Singapore, as businesses across the chip supply chain look to establish a stronger presence in one of Asia’s fastest-growing technology markets.
At SEMICON India 2026, the number of Singapore-based companies exhibiting at the Singapore Pavilion reached a record 27, up from just 10 in 2024.
The increase reflects growing commercial interest in India as the country attempts to develop a semiconductor ecosystem spanning manufacturing, equipment, materials, testing, logistics and supporting technologies.
India’s Chip Market Could Top US$200 Billion
India’s semiconductor market is projected to grow from about US$64 billion today to more than US$200 billion by fiscal 2035, according to figures cited by The Straits Times.
The Indian government is seeking to reduce dependence on imported chips while developing domestic manufacturing capacity, attracting investment and creating highly skilled jobs.
Singapore companies are positioning themselves to benefit from that expansion.
Tan Soon Kim, deputy managing director of Enterprise Singapore, described semiconductors as a sector that is poised to expand significantly in India.
Singapore Firms Already Have More Than US$180 Million in Contracts
The interest is no longer simply exploratory.
Singapore-based companies have secured more than US$180 million in semiconductor-related contracts in India since 2024, according to the report.
They have also invested more than US$20 million in the country and hired more than 300 employees to support projects linked to India’s developing semiconductor ecosystem.
The companies cover different parts of the supply chain.
Some provide semiconductor equipment and factory automation. Others specialize in high-purity piping, logistics, equipment installation and materials.
That breadth gives Singapore an opportunity to contribute expertise beyond chip fabrication itself.
Specmax Techno’s India Business Has Surged
One example is Singapore-based engineering company Specmax Techno, which specializes in semiconductor manufacturing engineering and high-purity piping.
The company began operating in India in 2024 with business worth roughly 100 million rupees (S$1.33 million).
Its India business has since surpassed 1 billion rupees.
But the rapid growth has exposed one of the challenges facing India’s emerging chip ecosystem: access to locally available equipment and components.
Specmax currently imports some equipment, including gas valves from Taiwan, with shipments sometimes taking as long as 18 weeks to arrive.
To reduce that dependence, the company is building a manufacturing facility in Tindivanam, Tamil Nadu, with an investment of around 2 billion rupees.
The facility is expected to begin production in June 2027 and will also include a training institute for workers.
India’s Big Chip Projects Are Creating Demand
Singapore firms are also being drawn by some of India’s biggest semiconductor projects.
Among them is the planned fabrication plant in Dholera, Gujarat, being developed by Tata Electronics with Taiwan’s Powerchip Semiconductor Manufacturing Corporation.
The project represents an investment of around US$11 billion and is expected to be commissioned in 2028.
Another major development is Micron Technology’s semiconductor assembly and test facility in Sanand, Gujarat, developed with an investment of approximately US$2.75 billion.
Micron’s facility began commercial production in 2026.
These projects require far more than chip-making equipment.
They need specialized engineering, logistics, testing, materials, clean-room infrastructure and other services — creating opportunities for companies throughout the semiconductor supply chain.
Singapore Brings a Different Piece of the Puzzle
Singapore has spent decades building its semiconductor ecosystem.
The country’s industry covers research and development, front-end manufacturing, back-end testing, equipment and supporting services.
The Singapore Semiconductor Industry Association says that experience is one of the country’s advantages as companies expand into India.
Singapore itself remains a major semiconductor hub. CNA reported in June that the city-state produces about one in every 10 chips worldwide and accounts for roughly one-fifth of global semiconductor equipment output.
That established ecosystem is now being connected with India’s much larger domestic market and rapidly expanding manufacturing ambitions.
Logistics and Talent Remain Major Challenges
India’s semiconductor opportunity comes with obstacles.
Companies have reported difficulties finding and retaining specialized talent, while differences in language, business practices and planning processes can complicate operations.
Import procedures are another concern.
Some semiconductor equipment and components can spend weeks or even months in transit because of customs and regulatory requirements, potentially disrupting project schedules.
Indian officials have said the government is working on customs-related issues raised by industry participants. Enterprise Singapore also plans to provide companies with a checklist aimed at helping shipments move more smoothly.
A New Semiconductor Supply-Chain Map Is Taking Shape
The growing Singaporean presence comes as India seeks to establish itself as a significant semiconductor manufacturing and technology center.
Five of the 12 projects approved under the first phase of India’s semiconductor programme had begun production, according to figures presented at SEMICON India 2026.
India approved a second phase of the programme in July with a budget of 1.27 trillion rupees, while officials said contracts worth about US$12 billion had already been secured under the new programme.
The scale of the investment is attracting companies that may never manufacture a chip themselves but provide the equipment, engineering, materials and logistics needed to make semiconductor production possible.
For Singaporean businesses, India therefore represents more than another export market.
It is becoming a place to build operations, develop local talent and establish long-term positions inside a semiconductor supply chain that India is rapidly trying to construct.
And with India’s chip market projected to exceed US$200 billion by 2035, the Singapore firms arriving now are betting that the biggest part of the transformation has yet to come.
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