Bangalore, February 3, 2015: India Electronics and Semiconductor Association (IESA), the premier trade body representing the Indian Electronic System Design and Manufacturing (ESDM) industry, has signed a Memorandum of Understanding (MoU) with the Singapore Semiconductor Industry Association (SSIA) to establish and develop trade and technical cooperation links between the electronics and semiconductor industry of both countries.
The announcement was made on the sidelines of IESA's annual flagship event, the Vision Summit, now ongoing.
India has a huge domestic ESDM market, but lacks adequate manufacturing capacity. The demand-supply gap is expected to widen to US $300 billion by 2020 evenas the ESDM Industry size is expected to reach US$400 billion. With approximately 40 IC design companies, 14 silicon wafer fabs and 20 assembly and test units, Singapore on the other hand is one of the leading countries in manufacturing of electronics products and semiconductors.
It was suggested here today, that this opens opportunities for Singapore EDSM companies to move up the value chain by shifting some manpower intensive operations to competitive and proximate locations like India; Indian firms too are benefited through setting up their operations in Singapore, providing them a better understanding of the trends and demands in the South East Asian markets.
Says Ashok Chandak, Chairman, IESA and Senior. Director NXP Semiconductors: “Both Singapore and Indian markets are considered highly importantmarkets in the global EDSM sector. There are emerging opportunities for Singapore companies to support the SPEED UP of the semiconductor fabs setup in India and also the electronics products creations as the demand continues to grow manifold in India. Through this MOU and the Whitepaper on India-Singapore ESDM industry collaboration opportunities, the member companies of both associations can harness the business potentials and strengthen the trade and Investment promotions between Singapore and India.”
Adds Meenu Sarin, Hon. Asst. Secretary, SSIA: “In Singapore, the manufacturing sector is witnessing growth in the value chain of higher margin activities such as research, development, and services. There has been a significant investment increase by semiconductor firms in Singapore with the intention to expand R&D and supply chain operations. Through this partnership, we aim to establish contacts between organizations and encourage reciprocal visits of official business persons and technical specialists between the two countries. Our endeavor will be to maintain a continuing exchange of information, investment promotion and harnessing a healthy environment for research and development as well as business opportunities between the two countries.”
The Singapore Semiconductor Industry Association (SSIA) is the voice of Singapore’s semiconductor industry. Started in 2005 under the name “MIDAS”, it has been operating with an extended charter under the new name “SSIA” since early 2010.
The India Electronics and Semiconductor Association is the premier trade body representing the Indian Electronic System Design and Manufacturing (ESDM) industry and has represented it since 2005. It has over 250 members, comprising both domestic and multinational enterprises. www.iesaonline.org