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Hania Humayun

India and Malaysia expand 2026 chip cooperation and defense ties after $18.6 billion trade year

Indian Prime Minister Narendra Modi met Malaysian leader Anwar Ibrahim in Putrajaya on Sunday to advance cooperation on semiconductors, trade and security following the upgrade of bilateral ties last August. The talks, held less than two weeks after India's January 27 trade deal with the European Union, linked India's chip design and new Gujarat fabs with Malaysia's Penang facilities, and aimed to increase the $18.6 billion in trade by encouraging settlement in rupees and ringgit instead of US dollars.