India and Singapore are likely to sign a major agreement on semiconductors during Prime Minister Narendra Modi's upcoming visit to the country.

The pact on semiconductors comes even as India has been strengthening its collaboration in the semiconductor sector with global partners, including the US, Taiwan, the EU, and others, reported WION news channel.

Modi will visit Singapore on Sept 4-5 at the invitation of Prime Minister Lawrence Wong.

The leaders will review the progress of India–Singapore Strategic Partnership and exchange views on regional and global issues of mutual interest.

"During the visit, Prime Minister will call on President of Singapore H.E. Mr. Tharman Shanmugaratnam and interact with Singaporean leadership," the Ministry of External Affairs said in a statement.

The Prime Minister will also meet with business leaders from Singapore.

With the objective to develop a vibrant semiconductor ecosystem, the Union Cabinet chaired by Prime Minister Narendra Modi approved the proposal of Kaynes Semicon Pvt Ltd to setup a semiconductor unit in Sanand, Gujarat.

The proposed unit will be setup with an investment of Rs 3,300 crore. The capacity of this unit will be 60 Lakh chips per day.

The chips produced in this unit will cater to a wide variety of applications which include segments such as industrial, automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.

"The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was notified on 21.12.2021 with a total outlay of Rs. 76,000 crore," read a government statement.

In June, 2023, the Union Cabinet had approved the first proposal for setting up a semiconductor unit in Sanand, Gujarat.

In February, 2024, three more semiconductor units were approved. Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat and one semiconductor unit in Morigaon, Assam. CG Power is setting up one semiconductor unit in Sanand, Gujarat

Construction of all 4 semiconductor units is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the units.

These 4 units will bring an investment of almost Rs 1.5 Lakh crore.

The cumulative capacity of these units is about 7 crore chips per day.