Putrajaya, Malaysia ¨C India and Malaysia pledged Sunday to deepen their semiconductor partnership as the Indian Ocean neighbors ramp up trade and security links during a visit by Prime Minister Narendra Modi.
Modi touched down in Malaysia on Saturday, his first visit in more than a decade, where he inked a number of agreements with Malaysian counterpart Anwar Ibrahim, including deals on renewable energy, health care and artificial intelligence.
¡°Along with AI and digital technologies, we will advance our partnership in semiconductors, health and food security,¡± Modi said.
¡°This meeting and these exchanges are very vital, very strategic and critical to advance and enhance relations between India and Malaysia,¡± Anwar added at a news conference in Malaysia¡¯s administrative capital Putrajaya.
Malaysia ranks sixth in worldwide exports of semiconductors, while the sector contributes around 25% of gross domestic product, according to Malaysian government figures.
India¡¯s foreign ministry said the Southeast Asian nation had a ¡°very strong semiconductor ecosystem.¡±
¡°They have almost 30 to 40 years of experience in those areas,¡± the ministry added in a statement ahead of Modi¡¯s arrival.
¡°Our companies are ... interested in collaborating with Malaysia,¡± it said, including in research and development and building manufacturing and testing plants.
For instance, Tata Electronics was in talks last June with global semiconductor companies to buy a fabrication or outsourced semiconductor assembly or test plant in Malaysia, Indian and Malaysian news reports said at the time.
Last year India exported $7.32 billion in goods, mainly in engineering and petroleum products, said the India Brand Equity Foundation.
Imports from Malaysia amounted to $12.54 billion, mainly minerals, vegetable oil and electrical machinery and equipment.
Malaysia also has a large Indian-origin population, around 6.8%, or almost 3 million people, official statistics said.
¡°This living bridge ... of diaspora is a great strength for us. The steps taken for their welfare lend a human foundation to our relationship,¡± Modi said.
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