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
Published: Jul 13, 2023
7_GettyImages-1455025797

Image by : VCG via Getty Images

7/12
  • Explained: The unbelievably complex process of making semiconductor chips
  • 2_shutterstock_2154084611
  • 3_GettyImages-1245863630
  • 4_2017-10-06T000000Z_410329227_RC1BF1A1A850_RTRMADP_3_TSMC-CHANG
  • 5_shutterstock_2248417027
  • 6_GettyImages-450100762
  • 7_GettyImages-1455025797
  • 8_GettyImages-90738385
  • 9_32FY2TE-highres
  • 10_GettyImages-1245437227
  • 11_shutterstock_2249159839
  • 12_shutterstock_2262331367

Employees work on Apple iPhone production at a Foxconn factory on September 4, 2021, in Zhongmu County, Henan, China. TSMC's recent success has been linked to one client's trust in particular: Apple. For the first six generations of iPhones, Apple had outsourced the manufacturing of its chips to the South Korea-based Samsung. Later, Samsung launched its own competing Galaxy smartphones, causing Apple to file a lawsuit over IP theft in 2011, which ended with Apple winning $539 million in a settlement. That dispute was a boon to TSMC as Apple withdrew its supply chains from Samsung and lay clear of partnerships that favour a potential rival. Taiwan-based TSMC was a dedicated foundry business with no rivalling interests, and Apple remains their biggest client to date.