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
Curated By: Madhu Kapparath
Workers gather for a ceremony that marks the beginning of bulk production of advanced 3-nanometer chips at a Taiwan Semiconductor Manufacturing Co. (TSMC) facility in Tainan, Taiwan, December 29, 2022. It took decades for Taiwan to emerge as a semiconductor giant, which began with the transfer of technology from the US in the 1970s to the setting up of TSMC in 1987. The world's biggest contract chip manufacturer today, TSMC's clients include Apple, Intel, Qualcomm, AMD and Nvidia. The $550 billion firm controls more than half the global market for made-to-order chips and has an even tighter stranglehold on the most advanced processors, with more than 90% of the market share by some estimates. Global chip sales were $574 billion as of 2022.
