Semiconductors have become the backbone of modern technology, powering everything from smartphones and computers to electric vehicles, artificial intelligence (AI) systems and advanced medical equipment. As global demand for digital infrastructure continues to rise, semiconductor manufacturing is emerging as one of the most strategically important industries in the world. Dr Chandan Dash highlights the manufacturing process, global industry landscape, technological developments and India’s growing ambitions in this rapidly evolving sector.
Understanding the Semiconductor Manufacturing Process
Semiconductor manufacturing is a highly sophisticated process that transforms raw quartz into ultra-pure silicon and eventually into microscopic electronic circuits. These circuits, commonly known as integrated circuits or chips, contain billions of transistors that perform complex computing operations.
The process begins with silicon purification and crystal growth, where silicon is extracted from quartz, purified, melted and developed into a single-crystal cylindrical ingot using the Czochralski method. The ingot is then sliced into extremely thin circular wafers, usually measuring 300 mm in diameter, which are polished to achieve a smooth surface.
The next stages involve oxidation and deposition, where protective and insulating layers are formed on the wafer. Through photolithography, ultraviolet light transfers intricate circuit patterns onto a light-sensitive material called photoresist. Etching techniques then remove selected material to create microscopic structures. Ion implantation introduces elements such as boron and phosphorus to control electrical conductivity, while metal wiring connects the transistors to form functional circuits.
Finally, the wafers undergo electrical testing, individual chip separation and packaging. These processes ensure that semiconductor chips are protected, reliable and ready for integration into electronic devices.
Global Semiconductor Industry and Leading Countries
The global semiconductor industry is geographically concentrated, with different countries specialising in particular stages of the supply chain. Taiwan is a major centre for advanced contract chip manufacturing, led by TSMC. South Korea plays a dominant role in memory chip production through companies such as Samsung and SK Hynix.
The United States leads in semiconductor research, chip architecture, intellectual property and advanced chip design. China continues to expand its domestic manufacturing capabilities, particularly in mature-node production. Japan remains an essential supplier of semiconductor materials, silicon wafers and manufacturing equipment, while the Netherlands is strategically important because of ASML’s advanced lithography technology.
Germany specialises in automotive and industrial semiconductors, whereas Singapore and Malaysia have developed strong capabilities in assembly, testing and packaging.
Semiconductor Applications Across Industries
Semiconductors support almost every major economic sector. Computers and communications represent the largest traditional application segment, including smartphones, laptops, networking equipment and telecommunications infrastructure.
The automotive industry increasingly depends on chips for electric vehicle batteries, power management, infotainment and advanced driver-assistance systems. Industrial applications include robotics, automation, energy management and medical equipment. Consumer electronics also rely on semiconductors for televisions, smart appliances and wearable devices.
Meanwhile, artificial intelligence and data centres are creating substantial demand for specialised processors, GPUs and high-bandwidth memory. This growing requirement is reshaping the industry’s investment priorities and technological direction.
India’s Semiconductor Opportunity
India is positioning itself as an emerging participant in the global semiconductor ecosystem. Its semiconductor demand is projected to reach approximately USD 110 billion by 2030 and exceed USD 200 billion by 2035. However, the country continues to depend significantly on imported semiconductor products.
To address this challenge, the government introduced the Semicon India Programme, commonly referred to as Semicon 1.0, with an initial financial outlay of ₹76,000 crore. Building on this foundation, Semicon 2.0 was approved in July 2026 with an allocation of ₹1,27,500 crore. Its six strategic pillars include chip design, manufacturing equipment and materials, fabrication facilities, advanced packaging, research and development, and talent development.
Projects such as Micron’s semiconductor assembly and testing facility in Sanand, Gujarat, and the proposed fabrication ecosystem in Dholera reflect India’s ambition to strengthen domestic capabilities.
Challenges and the Road Ahead
Despite promising developments, India faces several challenges. Semiconductor fabrication requires investments running into billions of dollars, specialised manufacturing equipment, uninterrupted electricity and enormous quantities of ultra-pure water.
Dependence on imported machinery, chemicals and advanced materials remains another major concern. India also needs more specialised engineers, cleanroom technicians and experienced fabrication professionals to support large-scale manufacturing.
Furthermore, developing advanced semiconductor facilities requires long-term investment, technological expertise and reliable supply chains.
Conclusion
The semiconductor industry is no longer simply a technology-driven business; it is a foundation of economic growth, industrial competitiveness and national technological security. With artificial intelligence, electric mobility and digital infrastructure accelerating demand, the importance of semiconductor manufacturing will continue to increase.
For India, the opportunity lies in building a complete semiconductor ecosystem through innovation, research, skilled talent and strategic investment. With sustained policy support and global collaboration, India can gradually strengthen its position in the international semiconductor value chain and contribute meaningfully to the next generation of technological progress.
