Explained: The unbelievably complex process of making semiconductor chips
The news of Foxconn-Vedanta's $19.5 billion semiconductor deal falling apart may be a temporary setback for India, striving to achieve its vision of becoming a major global hub in semiconductor manufacturing over the next decade. However, catching up with the global majors and setting up infrastructure may need more than a robust ecosystem, especially since it comes in the face of deteriorating demand for chips, particularly high-end, as the global economy contracts. Making the chips is an unbelievably complex and specialised process
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A macro view of a silicon wafer at an advanced semiconductor foundry. The Government of India's $10 billion incentive package for semiconductor manufacturing in India is a draw. Making the chips here in India is crucial to the government's vision to develop a domestic electronics supply chain and eventually reduce imports—especially from China, which remains the key destination for such manufacturing. As more companies try to diversify and rely less on China, India has an opportunity to emerge as a reliable alternative.