Promising to strengthen both the nations’ roles in the global tech landscape, India and Malaysia forge new semiconductor partnerships, boosting digital economy ties.
India and Malaysia have taken steps to strengthen their cooperation in semiconductor manufacturing. Following a bilateral meeting between Prime Ministers Narendra Modi and Dato’ Seri Anwar Ibrahim on Sunday, February 8, 2026, the two countries formalised agreements on semiconductors, digital technology, and technological advancement.
Both leaders highlighted the ongoing cooperation between Malaysia and India in semiconductor technology, referencing initiatives between the Indian Electronics and Semiconductor Association (IESA) and the Malaysia Semiconductor Industry Association (MSIA), as well as between IIT-Madras Global and the Advanced Semiconductor Academy of Malaysia.
Malaysia accounts for around 13 per cent of global trade in the semiconductor sector. India, on the other hand, is aiming to establish itself as a key player in the global semiconductor manufacturing market.
Meanwhile, as part of the agreements, India’s National Payments Corporation of India (NPCI) International Limited and Malaysia’s PayNet signed a deal to establish payment linkages between the two countries, aimed at simplifying cross-border transactions.
Furthermore, the establishment of the Malaysia-India Digital Council (MIDC) is expected to advance initiatives in fintech, artificial intelligence (AI), cybersecurity, and emerging technologies, further cementing their ties in the digital economy.
This growing cooperation underscores the semiconductor sector’s importance as both India and Malaysia work to secure their positions in the global supply chain and foster innovation across industries.
