India and Singapore have signed an MoU to collaborate on semiconductor ecosystems, the government announced on Thursday.

The MoU was exchanged in the presence of prime ministers Narendra Modi and Lawrence Wong during Modi's visit to Singapore.

"The MOU aims to support India's growing semiconductor industry while facilitating Singapore's ecosystem of semiconductor companies and related supply chains to participate in the fast-growing Indian market," an official statement said.

India is seeking to become a global semiconductor manufacturing hub, driven by strong domestic demand in electronics, electric vehicles and manufacturing sectors.

Under the MoU, Singapore and India will leverage their complementary strengths to build resilient semiconductor supply chains.

Singapore, while not a major high-end chip manufacturer, plays a significant role in the global tech supply chain by producing low-end chips for electric cars, smartphones and other devices.

Singapore-based firms may also consider India for assembly and testing operations due to its lower costs.

The nation accounts for about 10 per cent of global semiconductor output, 5 per cent of global fabrication capacity and 20 per cent of semiconductor equipment production.

Nine of the top 15 global semiconductor firms, including Qualcomm, AMD, Applied Materials, Global Foundries and Micron, have a presence in Singapore.

Besides semicondctors, MoUs were exchanged on digital technology, skill development and healthcare.

Modi held a roundtable with top business leaders and CEOs in Singapore, where he talked about ways to deepen economic linkages.

Highlighting the reforms underway in India, which will encourage investment and innovation, he invited Singaporean business leaders to look at investment opportunities in India in sectors such as aviation, energy and skill development.