India, Malaysia to announce semiconductor partnership during PM's visit
During PM Modi's trip to Kuala Lumpur on February 7-8, India and Malaysia are expected to announce a big semiconductor partnership.
The deal covers joint research, industry tie-ups, and setting up centers for chip-making and testing—backed by a government-to-government MoU.
P Kumaran from the Ministry of External Affairs said the collaboration is in the process of being established.
Malaysia is a major player in global chip production
Malaysia is a major player in global chip production, holding roughly 13% of the global market share in assembly, testing and packaging.
By teaming up, India can tap into Malaysia's experience while sharing its own design strengths—making both countries' tech industries stronger and more resilient.
This could mean better supply chains (so fewer tech shortages), more trade (around $20 billion), and new opportunities for young talent in both countries.
Plus, they're also talking about an NPCI-PayNet agreement for easier payments, as well as collaborating on defense tech—so this visit is set to spark some real change.