India and Malaysia Forge Semiconductor Alliance to Reshape Global Supply Chains
India and Malaysia have struck a strategic partnership combining chip design capabilities with advanced manufacturing infrastructure. The agreement, signed during high-level talks in Putrajaya, positions both nations as alternatives to China's semiconductor dominance.
Malaysia's 13% global share in chip testing and packaging will merge with India's $10 billion semiconductor incentive program. Prime Minister Narendra Modi emphasized the collaboration's global implications: "This isn't just bilateral—it's about building resilient supply chains."
The partnership links Gujarat's emerging fabrication plants with Penang's established production hubs. Government officials envision this South Asian axis challenging Western semiconductor strongholds while capitalizing on multinationals' China+1 strategies.
