PUTRAJAYA (AFP)

India and Malaysia pledged Sunday to deepen their semiconductor partnership as the Indian Ocean neighbours 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 percent 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 percent, or almost three 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.