lcd panel and microprocessors factory

The modern economy runs on semiconductors. The tiny electronic circuits, named for the electrical properties of the material from which they"re made, are the brains for millions of devices, including space vehicles, car computers, smartphones, medical equipment, appliances, and more. As applications proliferate, semiconductor manufacturers continue to prosper.

These companies compete in producing smaller, cheaper, and faster chips for increasingly powerful and affordable technology products. Semiconductors can be divided into four main categories: microprocessors, memory chips, commodity integrated circuits, and complex "systems on a chip."

The numerous chipmakers range from household names with global reach to smaller suppliers little known outside their specialized market niche. Their chips are an essential input for manufacturers of technology hardware and industrial equipment.

The semiconductor industry and chipmakers" stocks tend to be highly cyclical. Still, many investors view the sector as important given its secular growth trend and major role in the development of new technology.

Intel primarily develops processors for the personal computer (PC) and enterprise server markets. Its Client Computing Group segment supplying PC processors and Data Center Group segment serving enterprise customers including cloud services providers accounted for 51% and 33% of fiscal year 2021 revenue, respectively. The remainder consisted of internet-of-things solutions for retail, industrial, and healthcare markets; memory and storage products; autonomous driving technology; and programmable semiconductors.

The company produces motherboard chipsets, network interface controllers, and integrated circuits. In March 2021 Intel unveiled a plan to invest aggressively in expanding its foundry business, the industry term for contract manufacturing of semiconductors on behalf of customers.

Qualcomm is a global semiconductor and telecommunications company that designs and markets wireless communications products and services. Telecommunications companies worldwide use Qualcomm"s patented CDMA (code division multiple access) technology, which has played an integral role in the development of wireless communications. Its Snapdragon chipsets are found in many mobile devices.

Micron Technology supplies memory chips including flash RAM products as well as rewritable disc storage solutions. Its products are used in computers, consumer electronics, automobiles, communications, and servers.

Broadcom supplies digital and analog semiconductors as well as software for networking, telecom, and data center markets. It provides interfaces for computers" Bluetooth connectivity, routers, switches, processors, and fiber optics.

Nvidia is a leading developer of graphics processors for personal computers and enterprise servers. These graphics processing units, or GPUs, provide high-end performance sought by cryptocurrency miners, computer gamers, and those who work with computer-aided design.

Applied Materials is a leading supplier of capital equipment used to manufacture semiconductors as well as liquid crystal display (LCD) screens. The company"s technology is used to produce high-quality silicon wafers and to deposit microscopic circuitry on their surfaces.

ASE Technology is a Taiwan-based holding company that provides semiconductor assembly, packaging, and testing services. The company was created by the combination of Advanced Semiconductor Engineering Inc. and Siliconware Precision Industries Co., Ltd.

Based in the Netherlands, ASML is a leading supplier of advanced lithography systems used by chip manufacturers to add circuitry to silicon wafers. Its machines help chip makers use costly wafers as efficiently as possible and to improve the performance of their chips.

Texas Instruments develops and manufactures analog chips and embedded processors for industrial and electronics applications. The company is a major supplier of chips for mobile devices, digital signal processors, and analog semiconductors. It also still makes calculators, the product that brought the company to prominence.

In early September,The Department of Commerce unveiled its implementation plan for dispersing $50 billion from the CHIPS Act for subsidies to build chip plants in the U.S. and support U.S. chip research and development. Just this month, new restrictions were placed on China’s ability to purchase and manufacture certain high-end chips used in military applications. The export controls also impact U.S. companies exporting any semiconductor manufacturing equipment to China.

Already, companies are announcing investments to lessen U.S. reliance on Asia for semiconductors. Intel Corp. plans to spend$20 billion on a new fabrication plant in New Albany, Ohio, which is expected to be operational by 2025 and one of the world’s largest silicon-manufacturing sites. Taiwan Semiconductor (TSMC) and Samsung (which already announced plansfor a $17 billion chip plant in Texas to open in 2024) are also committed to bringing chip manufacturing back to U.S. shores.

At the same time, artificial intelligence (A.I.) and machine learning (M.L.) investment in the semiconductor industry is surging to increase efficiencies in ways we never imagined. In today’s era of extreme automation, A.I., along with digital twin technology, has the capacity to speed up the chip design and manufacturing process and, in turn, help us more quickly bridge the gap between demand and supply.

Today’s digital twin technology allows chip makers to improve performance while operating at full capacity, without any disruption. Companies such asLAM Research,Bosch(which uses a digital twin in one of its German semiconductor factories), andApplied Materials (a leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world) are already using surrogate machine learning models that are more accurate and up to a million times faster than traditional physics-based simulations.

Technology startups such asTignis (one of our portfolio companies),AspenTech andAnsys are now pioneering advances, leveraging digital twins to optimize industrial operations and make A.I. and M.L. available to almost any application.

With A.I. ready to play a key role in process control and process modeling and available for use in any field of engineering simulation, there will be a massive opportunity for disruption in the manufacturing industry through the delivery of significant improvements in yield, quality, and throughput.

Digital twins modeling can therefore prove invaluable to the chip fabrication process, contributing to a more streamlined design and production process while reducing dependence on physical prototyping.

Still, while some chip manufacturers are already using digital twins to create development models, the technology has not been used widely to optimize production. This is surprising when you consider that by using data already available, digital twins have the capacity to help chip manufacturers better determine if production targets are adequate and, if not, what even a modest increase in production could mean.

By recreating what a physical system looks like in the cloud, manufacturers can identify key learnings and achieve an even greater increase in capacity–all without the risks associated with traditional methods.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs ofFortune.

The following story could be modified by doing a “find and replace” substituting displays for semiconductors and chips. The difference being that the US let go of the display industry in the 80’s and we have no remaining strong contender.

China has been shoveling billions into developing its own chip industry, which has long been dominated by the United States and has helped propel a boom in 5G technology, artificial intelligence and robotics. The United States only accounts for around 12 percent of global semiconductor production capacity. Decades ago, domestic designers began turning to foundries in places like Taiwan and South Korea to manufacture their chips. While past government subsidies have largely focused on chip research, the latest bill puts a heavy emphasis on domestic manufacturing. A centerpiece, which would put more than $22.8 billion toward the industry, is a new trust fund for federal grants to match state subsidies to encourage new factories. As much as $10 billion a year could be placed in the fund, with the money to come from the import tariffs the administration has placed on China, rather than a congressional appropriation.

The shift in Congress mirrors one in the Trump administration, which has rejected traditional Republican support of free trade in favor of a more managed approach to compete with China. Mr. Trump’s advisers have zeroed in on the semiconductor industry, which was born in the United States but has partly migrated to Asia in recent decades, as the test case for their plan to use trade and technology policies to return manufacturing to American shores.

China still lags in the production of the most advanced semiconductors, but its technology is improving quickly. The Trump administration has warned that China is using subsidies, targeted investments and cybertheft to try to gain a technological edge. Chip factories — which now routinely cost as much as $10 billion and can take years to construct — also help set the pace of innovation. By developing new production processes that squeeze more transistors on tiny squares of silicon, manufacturers can lower the cost for performing calculations and storing data. Intel, which has major factories in three U.S. states, for decades led that technology race. But the company was several years late on delivering its latest production process, allowing TSMC. and Samsung to claim a lead. South Korea, Israel, Ireland, Germany and other countries have offered generous incentives to attract chip makers.

Concurrently, China’s display industry enters its 2nd five year plan and will be self-sufficient by 2025. U.S. industry and the US military is finding it difficult to acquire certain displays outside of China. Supplying our pilots, submariners and soldiers with Chinese made devices does not work in today’s political climate and certainly not if there is a cold or God forbid a hot war with the Chinese. Action is necessary to remain viable by marshalling support for a US display fab industry. The promise of Foxconn in Wisconsin is not the answer. Let’s educate the bill’s sponsors, Senators John Cornyn, Republican of Texas, and Mark Warner, Democrat of Virginia, and Representatives Michael McCaul, Republican of Texas, and Doris Matsui, Democrat of California and get a display program going in the US.

During the turn of this century the display industry was driven out of North American by an emphasis on the next best cheapest display. Even the defense industry moved from secure bases of supply to a commercially off the shelf (COTS) model. Similar to the way our country has become dependent on China’s pharmaceutical producers, sourcing at the lowest cost became the supply chain mantra. Asia with its lower labor costs and looser environmental requirements, took advantage of our price conscious attitude and the display industry and North American companies encouraged the change. Companies such as Westinghouse, where the active matrix was invented, Electrohome, Zenith and RCA gave way to Sony, Toshiba Sharp and Panasonic. As even lower cost venues were sought LG, Samsung AUO and Innolux entered the market. Today China dominates the LCD market with companies like BOE, CSoT, HKC, and CEC Panda. As Samsung and LG pioneered the OLED segment, China’s panel maker’s adopted the technology and will soon have >50% of the total capacity.

At the time of writing, there is not a single display manufacturer in North America. While there are still a few specialized players such as Kopin and eMagin that focus on micro OLED displays, but on a larger scale there is no one. On an economic basis alone, manufacturing in North America is a recipe for disaster as no one can compete against the Chinese display makers with their high volume factories which are heavily funded by the government. The response is not to wave the white flag and acquiesce to China. We should be pursuing a strategy similar to the one adopted by the semiconductor industry.

The challenge is not just to on rely on a one off factory as per the Foxconn gesture, but to build an entire industry to support the end product being a display. Displays are the only human interface to the digital world and their supply is imperative to daily living. Imagine getting up in the morning and peering at your analog watch, yes digital watches have a display. Then reaching for you mobile device, oh yeah, can’t read anything since there is no display. Then getting up and going to the kitchen for breakfast. What appliances do we use that have digital information? How about turning on the radio since there are no TVs? Can’t read email as our laptops and monitors do not exist. Heading for the office, hopefully the car doesn’t have a digital dash. Oh yeah, apple car play or android auto, useless since there is no navigation display. Shall I keep going? The bottom line is that displays are part of our daily lives and without them, we would be back in time.

But all our displays are made in Asia. What would happen if a trade war or other disturbance breaks out? Are we willing to take that risk? Just look at the recent chaos caused by a lack of toilet paper and face masks. Supply chains have been disrupted. One takeaway from COVID-19, “never to have “all your eggs in one basket”. Our government and industry needs to create a balanced supply chain with international and local supply of not only displays but most products. China subsidized LG’s Guangzhou fab with 65% of the capital; they subsidize Chinese companies with >80% of the new capital. Why shouldn’t we do the same? It creates jobs, preserves the local technology and balances the supply chain. (BY)

A semiconductor is a material with conductivity that is between an insulator and most metals. Its primary usage is with modern-day electronics, such as transistors and diodes. Transistors are used in power electronics, computer processors, and switches; diodes are used in devices such as LEDs and inverters/alternators which convert AC to DC. Semiconductors are also commonly known as semis, chips, microchips, or computer chips. In this guide, we"ll be going over the top semiconductor companies, also known as computer chip companies, in the United States and globally.

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Suppliers of semiconductors may be characterized by the specific end products produced and the processes employed. Major industries involve individual electronics components, systems-on-a-chip, memory, and most importantly the processors used to power our phones and computers. In Table 1, below, we"ve outlined the largest chip manufacturers in USA.

Intel Corporation is the world"s largest semiconductor chip maker based on its 2020 sales. It is the inventor of the x86 series of microprocessors found in most personal computers today.

NVIDIA Corporation designs graphics processing units (GPUs) for both gaming and professional markets, as well as system-on-a-chip units (SoCs) for automotive and mobile computing markets. Its primary GPU product line directly competes with Advanced Micro Devices" (AMD) GPU products. Nvidia also provides parallel processing capabilities to researchers and scientists for high-performance supercomputing applications. It produces mobile processors for smartphones and tablets as well as vehicle navigation and entertainment systems.

Texas Instruments Incorporated is one of the top ten semiconductor manufacturing and design companies worldwide (based on sales volume), with more than 43,000 US and international patents. TI focuses on developing analog chips and embedded processors, accounting for more than 80% of their revenue. TI also produces digital light processing (DLP) technology and education technology products including calculators, microcontrollers, and multi-core processors.

Micron Technology, Inc. produces many forms of semiconductor devices, including dynamic random-access memory, flash memory, and solid-state drives. Micron and Intel together created IM Flash Technologies which produces NAND flash memory.

Analog Devices, Inc. manufactures analog, mixed-signal, and digital signal processing (DSP) integrated circuits used in electronic equipment. Analog Devices serves a diverse range of industries including communications, computer, industrial, instrumentation, military/aerospace, automotive, and consumer electronics.

Microchip Technology Incorporated manufactures microcontrollers (PIC, AVR, SAM), memory (EEPROM, SRAM), analog semiconductors, radio frequency (RF) devices, thermal, power and battery management analog devices, as well as linear, interface (USB, Ethernet, ZigBee, etc.), and mixed-signal devices.

Skyworks Solutions, Inc. manufactures semiconductors for use in radio frequency (RF) and mobile communications systems. The company"s portfolio includes amplifiers, attenuators, circulators, demodulators, detectors, diodes, directional couplers, front-end modules, hybrids, infrastructure RF subsystems, isolators, lighting and display solutions, mixers, modulators, optocouplers, optoisolators, phase shifters, PLLs/synthesizers/VCOs, power dividers/combiners, power management devices, receivers, switches, and technical ceramics.

Xilinx, Inc. is primarily a supplier of programmable logic devices. It is known for inventing the field-programmable gate array (FPGA) and as the company that created the fabless manufacturing model.

What is the world"s largest and highest valued semiconductor chip-making company? There isn"t one simple answer. While Intel is, for the moment, the most valuable in terms of annual sales, TSMC is the largest foundry worldwide. Table 2 below, based on the above data from Statista, displays details on the top ten microchip manufacturers, ranked by their 2020 sales volume in billions of U.S. dollars. Additional information includes each chip manufacturer’s sales in 2019 and 2018 for comparison, as well as the country from which it is based. Dashes indicate where information was unavailable.

TSMC is the world’s largest semiconductor foundry. The company specializes in integrated circuits, serving the computer, communications, consumer, and industrial sectors. It owns a U.S. subsidiary called WaferTech, through which its products can be purchased.

Above we"ve listed the top 10 US and top 10 global semiconductor companies. For comprehensive information on other U.S.-based chip manufacturers or any other industrial product or service, head over to Thomas Supplier Discovery, where we have a database of over 500,000 commercial and industrial suppliers, including over 800 semiconductor manufacturers.

Today, semiconductor and LCD panel manufacturing equipment is essential for the production of all kinds of electric and electronic appliances, including PCs, cell phones and flat-panel televisions. Advances in this equipment promote enhancements to PC performance and cell phone functions, and enrich people"s lives by reducing the cost of flat panel TV sets. THK"s products can meet this kind of high-technology need for fine movement control.

Compact ball screws and Caged Ball LM Guides exhibiting very smooth movement are used in highly efficient production systems used for LCD panels for car navigation systems and mobile tools.

To transfer large crystal glass substrates over long distances quickly, high speed, superb accuracy and the ability to track even when long strokes are necessary. A combination of LM Guides and linear motor driving systems can deliver this.

In order to test the electrical characteristics of LCD panel substrates, the measuring instrument must be capable of positioning the substrates accurately over a wide area. LM Guides and ball screws, machined to a high level of accuracy, can provide this tracking control and contribute to efficient manufacturing even as the size of the substrates increases.

Dicing saws cut and separate each IC chip from its larger wafer. Laser cutting devices and very thin radial blades at the end of high-speed rotating spindles are used to accurately cut out the IC chips. LM Guides and Ball Screws are used in the guidance and driving sections, which must always operate with a high level of accuracy and stability. THK’s ultra precision technologies excel in this technology.

A semiconductor chip is an electric circuit with many components such as transistors and wiring formed on a semiconductor wafer. An electronic device comprising numerous these components is called “integrated circuit (IC)”. The layout of the components is patterned on a photomask (reticle) by computer and projected onto a semiconductor wafer in the manufacturing processes described below.

With this, one layer of the circuit is formed. The transistors are formed on the lowest layer. Similar process is then repeated, and many layers of circuits are formed on top of one another.

In the process of the integrated circuit creation, there are inspection and measurement steps to check whether or not the patterns are fabricated as designed. If defects are found, the fabrication will be interrupted to remove the defects from the process and to make small changes in the fabrication conditions for correction purposes. More than one hundred semiconductor dies are fabricated on a single wafer. At present, the largest silicon wafer is 300mm in diameter. Semiconductor manufacturers are looking into 450mm diameter silicon wafers for use in the future.

Semiconductor devices are completed through the front-end process (wafer processing operation) and the back-end process (assembly process) described below.

The finished semiconductor devices have been used in a variety of products such as personal computers, smartphones and cars in everyday life (see also “Semiconductors in everyday life”).

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In early November, it was reported by Economic Times that Reliance Industries and leading software firm, HCL, are “independently ‘evaluating’ deals to purchase a 30% equity stake each in the semiconductor wafer fab applicant ISMC Analog.”

At a Gujarat rally on November 23, PM Modi made a first formal announcement of the location of Vedanta and Foxconn’s proposed semiconductor manufacturing facility in Gujarat at Dholera, in the Bhavnagar neighborhood.

Three sub-committees to vet proposals under the Indian Semiconductor Mission (ISM) have been set up by the government. The proposals will be evaluated on their financial viability, technical expertise, and the financial capabilities of their partners, among various considerations.

Included in the first committee are members from the Ministry of Electronics and Information Technology (MeitY) and the Industrial Finance Corporation of India (IFCI). The second committee includes members from the National Investment and Infrastructure Fund (NIIF). The third sub-committee has members from the 21-member ISM expert group and includes three domain experts. The ISM expert group is chaired by the Information Technology Minister Ashwini Vaishnaw.

As of reporting in the media on November 1, 2022, authorities are expected to approve the “first applications soon”. The following applications are awaiting official approval to set up semiconductor fab units – Vedanta-Foxconn, Next Orbit Ventures-Tower Semiconductor (now owned by Intel), and Rajesh Exports. The consortiums have applied for incentives under the US$10 billion ISM package.

The US deputy assistant secretary, South and Central Asia, Afreen Akhter, is leading a trade mission of semiconductors industry to India and has had meetings with India’s top government officials. The US intends to support India overcome challenges in the semiconductor supply chain and boost its local semiconductor manufacturing capacity. The US publicly seeking to strengthen its partnerships with “like-minded countries” like India and Taiwan. In a related context, in October, the US Department of Commerce implemented new export controls on advanced computing and semiconductors sold to China.

The government and the India Semiconductor Mission is likely to start approving proposals to set up electronic chip and display manufacturing plants in the country in the next 30-60 days / over the next couple of months, as per Minister of State for Electronics and IT Rajeev Chandrasekhar’s comments during a virtual address at the IESA Vision Summit held on October 12, 2022.

The Ministry of Electronics and IT has plans to spend US$1.25-US$1.30 billion to modernize and upgrade its semiconductor laboratory (SCL) in Mohali. This spending is also targeted at strengthening intellectual property rights in India’s semiconductor sector. The SCL has now invited bids for the lab upgrade; qualified bidders must have a commercial partner on board to produce fabrication of chips designed by the lab. The last date for submitting bids to the SCL’s request for proposal (RFP) is October 25, 2022. The SCL aims to be able to produce 28-nm chips after upgradation.

The government has approved modifications to the “Program for Development of Semiconductors and Display Manufacturing Ecosystem in India”, including fiscal support for project cost and capital expenditure. Following discussion with potential investors, it is expected that work on setting up the first semiconductor facility will commence soon. More details below.

Vedanta-Foxconn are set to finalize a location for their facility in the next few weeks. The consortium are reportedly seeking a 800-1000 acre land parcel that is also well connected with Ahmedabad. The Gujarat government, as of media reports on September 16, showing sites at Sanand and Mandal-Becharaji in Ahmedabad district, two locations near Vadodara in central Gujarat, Dholera, Himmatnagar, Jamnagar, and Kutch. The plant has to be located at a distance from national and state highways so to cut off any vibration from heavy traffic movement. Further, no other major industry should be located in its vicinity.

Vedanta and Foxconn, in a 60-40 joint venture, will be setting up India’s first semiconductor production plant, a display fab unit, and a semiconductor assembling and testing unit over 1000 acres in Ahmedabad, state of Gujarat. The plant will begin production in two years as Foxconn plays the role of technical partner while Vedanta provides financial backing. The investment is worth over INR 1.54 trillion (approx. US$20 billion) and semiconductor manufacturing will be carried out by the holding company, Volcan Investments Limited.

International consortium ISMC (US$3 billion investment) and Singapore-based IGSS (investment worth INR 256 billion) will be setting up semiconductor plants in Karnataka and Tamil Nadu, respectively.

The Indian government confirmed it has received proposals from five companies to establish electronic chip and display manufacturing plants with an investment of INR 1.53 trillion (approx. US$20.5 billion). Given the time-intensive decision-making process and international travel disruptions due to COVID-19, there is currently no firm deadline in place for companies submitting their applications to India’s semiconductor chip design and manufacturing scheme: Rajeev Chandrasekhar, minister of state for electronics and IT, speaking toThe Economic Times.Initially, the first window for applications was until February 15.

The Ministry of Electronics and Information (MeitY) is seeking applications from 100 domestic companies, start-ups and MSMEs under its Design Linked Incentive (DLI) Scheme. The scheme has three components – Chip Design infrastructure support, Product Design Linked Incentive and Deployment Linked Incentive. C-DAC (Centre for Development of Advanced Computing), a scientific society operating under MeitY, will serve as the nodal agency for implementation of the DLI scheme. The DLI scheme aims to nurture at least 20 domestic companies involved in semiconductor design and facilitate them to achieve turnover of more than INR 15 billion in the next five years. A dedicated portal has been made available – www.chips-dli.gov.in – for inviting online applications from January 1, 2022 to December 31, 2024. The applicants can find the guidelines of the DLI Scheme on the portal and register themselves for availing support under the scheme.

The IT ministry has released guidelines for implementation of the scheme and a semiconductor portal is being prepared for accepting and processing applications from interested companies. See

India announced on December 30, 2021 that the government will start receiving proposals from companies for semiconductor and display manufacturing from January 1, 2022. Guidelines for the schemes have been notified. See here for information on the application process and fiscal support available: Semiconductor Companies Can Submit Proposals to Indian Govt. from January 1, 2022

To learn more about the Indian government’s fresh incentives and ambitious support agenda for semiconductors, read our article: What Can Chip Companies Expect from India’s New Semiconductor Incentives Package?

In order to drive long-term strategies for developing a sustainable semiconductors and display ecosystem, a specialized and independent “India Semiconductor Mission (ISM)” will be set up by the government. The India Semiconductor Mission will be led by global experts in semiconductor and display industry and act as the nodal agency for efficient and smooth implementation of the schemes on Semiconductors and Display ecosystem.

On December 15, 2021, the Indian government cleared a INR 760 billion (>US$10 billion) package to boost semiconductor and display manufacturing. The program aims to provide attractive incentive support to companies / consortia that are engaged in Silicon semiconductor fabs, display fabs, compound semiconductors / silicon photonics / sensors (including MEMS) fabs, semiconductor packaging (ATMP / OSAT), semiconductor design. Incentives worth INR 2.3 trillion (approx. US$30.16 billion)will be available to position India as global hub for electronics manufacturing.

Over 20 semiconductor manufacturing and designing companies in high-end, display, and specialty fabrication have reportedly submitted Expressions of Interest (EOIs) to set up manufacturing plants in India. The deadline was April 30, 2021.

The government is open to introducing new incentives for chipmakers, beyond those detailed in the PLI scheme. It will likely be based on the investment coming in and the company’s area of work, type of fab, and requirement. No further information has been put out yet.

India Briefing spotlights the latest developments in India’s nascent semiconductor industry, where the talent pool has focused, and recent government initiatives to boost investment growth.

Join us as Rohit Kapur, Dezan Shira & Associates’ Country Manager of India discusses opportunities for US businesses in India, direct investment policies, trade channels, and market entry routes in this informative webinar designed to support businesses diversifying or expanding to India.

Semiconductors or chipsets are used in all modern electronic devices and technologies, with a range of applications that range from electronic products and IT hardware to defense technology, industrial electronics, medical electronics, automation (workplace, healthcare, manufacturing etc.), and the Internet of Things (IoT).

Moreover, rapid developments in the capacity for intelligent computing and growth of AI in these applications and related industries has further expanded the dependency on semiconductor research and escalated the economic value of its manufacturing capacity.

According to the India Electronics and Semiconductor Association (IESA), semiconductor consumption in India was worth US$21 billion in 2019, growing at the rate of 15.1 percent. Research and development in this industry, which includes electronic products and embedded systems, generated about US$2.5 billion in revenue.

Yet, India lags in the establishment of semiconductor wafer fabrication (FAB) units – due to a weak ecosystem and shortage of resources as compared to more competitive bases like China and Vietnam.

Semiconductor FAB units require huge investments, gallons of water for production, uninterrupted electricity supply, high operating costs, and the need for frequent technology replacement.

This is why India’s contribution to the industry has focused on its technical competencies in R&D, design, etc. due to its talent pool in IT design and R&D engineers. The Indian semiconductor design market was projected to grow by a CAGR of 29.4 percent from US$14.5 billion in 2015 to US$52.6 billion in 2020.

As per the Ministry of Electronics and Information Technology (MeitY), R&D capabilities in very large-scale integration (VLSI) and chip design are showcased by the Centre of Excellence in Nanoelectronics at Indian Institute of Science, Bangalore and the Indian Institute of Technology, Bombay. India is setting up commercial semiconductor wafer fab units and two consortia have initiated work in this regard. The proposed location is Greater Noida in Uttar Pradesh (about 40 kms from New Delhi) and in Prantij in Gujarat (about 50 kms) from Gandhinagar.

In early 2021, the Indian government sought proposals from interested applicants to either setup (and/or expand) semiconductor wafer/device fabrication plants (FABs) in India or their acquisition outside India. The notification about the Expression of Interest was available in Korean, Japanese, Hebrew, and Chinese – an indication of the expected investment interest from foreign players. The deadline for these proposals (Expression of Interest) was extended from March 31, 2021 to April 30, 2021.

In December 2021, the Indian government unveiled the Program for Development of Semiconductors and Display Manufacturing Ecosystem in India, with an outlay of INR 760 billion (>US$10 billion) for the development of a sustainable semiconductor and display manufacturing ecosystem in India. The IT ministry has released guidelines for implementation of the scheme and a semiconductor portal is being prepared for accepting and processing applications from interested companies. See table below for government notified PDF links.

Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India

A dedicated portal has been made available – www.chips-dli.gov.in – for inviting online applications from January 1, 2022 to December 31, 2024. The applicants can find the guidelines of the DLI Scheme on the portal and register themselves for availing support under the scheme.

On September 21, 2022, the Cabinet, chaired by Prime Minister Narendra Modi, approved key modifications to the Program for Development of Semiconductors and Display Manufacturing Ecosystem in India:

Fiscal support of 50 percent of capital expenditure on pari-passu basis under Scheme for Setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor ATMP /OSAT Facilities in India. Additionally, target technologies under the Scheme will include discrete semiconductor fabs.

Under the modified program, a uniform fiscal support of 50 percent of project cost shall be provided across all technology nodes for setting up of semiconductor fabs. Given the niche technology and nature of compound semiconductors and advanced packaging, the modified program shall also provide fiscal support of 50 percent of capital expenditure in pari-passu mode for setting up of compound semiconductors / silicon photonics / sensors / discrete semiconductors fabs and ATMP/OSAT.

Between April 2000 and December 2020, India’s electronics sector received FDI worth US$3 billion, and the Indian government has allowed 100 percent FDI under the automatic route for the electronics sector. According to the Indian government, India’s semiconductor market was worth US$15 billion in 2020 and projected to reach US$63 billion by 2026 and India’s display panel market is estimated to be worth around US$7 billion and expected to grow to US$15 billion by 2025.

Through its various initiatives, India hopes to attract investments worth at least US$25 billion to build up local manufacturing capacity for semiconductors and display panels.

India’s first chip maker, Polymatech, has announced that it has begun manufacturing and releasing its Opto-semiconductors and memory modules into the market. Powered by Japanese technology, the company’s Opto-semiconductors are used in lighting, medical, and food sanitization applications. Polymatech’s main manufacturing plant in Kancheepuram, Tamil Nadu, makes 400,000 chips per day. In a media release, the company states it will work to raise this manufacturing capacity to 1 million chips per day or 300 million chips per year. In July, Polymatech said it would invest over US$1 billion in semiconductor chips manufacturing. Polymatech offers fully packaged Opto-semiconductors in HTCC (High-Temperature Co-fired Ceramic Substrates) and COBs (Chip on Board).

The government has plans to incur US$1.25-US$1.30 billion in capital expenditure at its semiconductor lab (SCL) at Mohali to modernize and upgrade the lab and strengthen India’s intellectual property rights in the semiconductor space. This spending will come from the US$10 billion semiconductor incentive package announced in December 2021. The SCL is now under the IT and electronics ministry. The Economic Times is reporting that SCL is currently floating a request for proposal (RFP) inviting bids for its modernization plan and bidders must have a commercial partner for fabrication of chips developed by the lab. The deadline for submitting bids is October 25, 2022. The SCL aims to be able to produce 28-nm chips after upgradation.

On September 14-15, 2022, it was clarified that Vedanta and Foxconn, in a 60-40 joint venture, will be setting up India’s first semiconductor production plant, a display fab unit, and a semiconductor assembling and testing unit. The plants will operate across a 1000-acre plot in Ahmedabad, state of Gujarat. The plant will begin production in two years. Foxconn will be the technical partner while raw materials conglomerate Vedanta will provide the financial backing. The JV investment will be worth over INR 1.54 trillion, and the semiconductor manufacturing business will be carried out by Vedanta’s holding company, Volcan Investments Limited. The project is said to create more than 100,000 jobs.

IGSS Ventures, a consortium of companies, has signed an MoU with the Tamil Nadu Guidance Bureau in early July to set up a 300-acre high-tech semiconductor park. “Tamil Nadu has allocated nine strategic sites, including two in the vicinity of Chennai, to house a semiconductor fab that will be producing three technology nodes of wafers, ranging from 28nm, 45 nm and >=65 nm, and an industry ecosystem infrastructure that hosts semiconductor circuit designers, material suppliers, equipment suppliers, and outsourced semiconductor assembly and test players,” IGSS Ventures said in a release.

The investment, inclusive of grants, is set to be INR 256 billion, and will create over 5000 jobs spread over five years. IGSS semiconductor fab Project Suria is an applicant to the Indian Semiconductor Mission. Commercial production is expected to begin in two years, employing potentially 1500 semi-skilled and skilled personnel. Further, IGSS said that the high-tech park could “potentially see additional employment of 25,000 people with jobs generated by the ecosystem partners with an estimated investment of around ₹76,000 crore.”

ISMC, a JV between Abu Dhabi-based Next orbit Ventures and Israel’s Tower Semiconductor, will set up India’s first chip-making plant, at an investment of US$3 billion, and have requested a 150-acre land plot in Mysuru’s Kochanahalli industrial area for the unit. The plant is set to make 65-nanometer analog semiconductor fab and will create 1500 direct jobs and 10,000 ancillary jobs. (US chip giant Intel will be acquiring Tower Semiconductor.)

International consortium ISMC and Singapore-based IGSS are confirmed to be setting up semiconductor plants in Karnataka and Tamil Nadu, respectively. They are two among three applicants for the central government’s incentive program to set up semicon fab units in the country, the third being the Vedanta Foxconn JV.

i) Vedanta Foxconn JV, IGSS Ventures and ISMC have proposed to set up electronic chip manufacturing plants with US$13.6 billion investment. They seek US$5.6 billion in support from the central government under the

In late 2021, US chipmaker giant Intel expressed its interest in setting up a new plant in India and is likely to apply for incentives under the new scheme under the Program for Development of Semiconductors and Display Manufacturing Ecosystem in India.

India and Taiwan are currently negotiating a free trade deal, with Taiwan setting up a semiconductor manufacturing unit in India serving as a key component for expanding bilateral economic engagement. The Indian government has reportedly already proposed a number of sites for the facility. Taiwan’s leading semiconductor producers are the Taiwan Semiconductor Manufacturing Company (TSMC) and the United Microelectronics Corporation (UMC). TSMC manufactures around 50 percent of all semiconductors globally as per industry estimates.

Business Standardreports that “Tata Group is in discussions with some major international companies, including those from Taiwan, for its foray into the semiconductor chip business.”

Californian product engineering company INVECAS has planned to invest between US$15-20 million for the setup of design centers in Bengaluru and Hyderabad over the next few years.

German semiconductor firm Infineon Technologies has partnered with the non-profit National Skill Development Corporation (NSDC) to impart education and training regarding semiconductors to young talents for the purpose of developing India’s electronics manufacturing ecosystem.

For the development of trade and technical cooperation in the semiconductor industries between India and Singapore, IESA and the Singapore Semiconductor Industry Association (SSIA) have signed a memorandum of understanding (MoU).

On December 30, 2021, the Indian government announced it will start receiving proposals from companies for semiconductor and display manufacturing from January 1, 2022. To learn more about the incentives on offer and eligibility criteria, see our article here.

On December 15, 2021, the Program for Development of Semiconductors and Display Manufacturing Ecosystem in India was announced, with an outlay of INR 760 billion (>US$10 billion) for the development of a sustainable semiconductor and display manufacturing ecosystem in India. This funding of US$10 billion will be provided over a period of six years and is expected to bring in investments of up to INR 1700 billion (US$22.5 billion). Overall, the program will provide attractive incentives and support companies engaged in the manufacturing of silicon semiconductor fabs, display fabs, compound semiconductors/silicon photonics/sensors (including MEMS) fabs, semiconductor packaging (ATMP/OSAT), and semiconductor design. Among other objectives, India wants to set up at least two greenfield semiconductor fabs and two display fabs.

To ensure a boost in the semiconductor industry, the Union Budget of 2017-18 increased the allocation for incentive schemes, such as the Modified Special Incentive Package Scheme (M-SIPS) and the Electronic Department Fund (EDF), to US$111 million.

To ensure further investments in the industry, create employment opportunities, and reduce dependence on imports by 2020, the government amended the M-SIPS by approving new incentives for investors, worth US$1.47 billion.

The MeitY has planned to revise its policy framework, to develop the industry by providing initial capital that is meant to attract more private players and push India to become a global hub for semiconductors.

The government of Gujarat has planned to set up a new electronics manufacturing hub in the state, following the launch of its electronics policy in 2016, and is expected to generate around 500,000 jobs in the electronics sector in the next five years.

The federal government has set up an empowered committee for manufacturing in high technology areas, which will be headed by the minister of Commerce and Industry, and notable people from the Indian industry, including Tata Sons chairman N Chandrasekaran, Bharat Forge Chairman Baba Kalyani, Mahindra Group managing director and CEO Pawan Goenka, Zoho Corp CEO Sidhar Vembu, and semiconductor expert Anshuman Tripathi.

In 2016, an electropreneur park was inaugurated at the University of Delhi’s (DU) South Campus to incubate 50 early stage start-ups and lead to the creation of at least five global companies over a period of five years.

The government has approved a Scheme for the Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and a Production Linked Incentive (PLI) scheme for 13 critical sectors like telecom, automobiles, etc.

Besides aiding intelligent computing systems, semiconductors also play an important role in the advancement of emerging technologies, such as IoT, 5G, robotics, and autonomous vehicles. However, these technologies will not be able to advance further unless India is able to develop a sustainable semiconductor manufacturing ecosystem – a prerequisite to advance India’s online infrastructure.

As per the India Cellular and Electronics Association (ICEA), India’s semiconductor industry is capable of gaining a sizeable share of the global market by becoming a hub for laptops and tablets, which will provide a manufacturing value of US$100 billion and create 500,000 jobs.

Desirous of setting up/expanding existing semiconductor FABs in India (preferably with a node size of 28mn or lower, wafer size of 300mn and a capacity of 30,000 WSPM or more)

• Financial details including proposed investment, sources of funding and ownership structure; projected P&L statement, and key financial indicators (IRR, ROI, ROCE, EBIDTA, and NPV with and without expected government support).

• Financial support desires from the government of India, including grant-in-aid (GIA), viability gap funding (VGF) in the form of equity and/or long-term interest free loan (LIFL), tax incentives, infrastructure support etc.

• Support desired from the state government in terms of extent, value, and nature of land; availability and cost of provisioning water; and power tariff.

• Human resources such as requirement of trained manpower and feasibility/potential modalities/support for development of talent leveraging Indian universities.

• Raw material, details regarding sourcing of raw materials, e.g., specialty gases and ultra-pure chemicals of semiconductor grade; road map for developing the raw material manufacturing ecosystem in India.

• R&D support, desired support for R&D and proposed mechanisms; possible Indian R&D counterpart or prospective agencies/organizations for research (if any).

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Semiconductors have become a part of electronics and our life. All modern day electronic devices including radio, computers, telephones, mobile phone etc have semiconductor in some form or the other.

A Semiconductor can be defined as a material that has the characteristics and ability to conduct a small amount of electrical current in a controlled manner. Semiconductors have much lower resistance to the flow of electrical current in one direction than in another.

Diodes, transistors, and many photovoltaic cells contain semiconductive material. The electrical conductivity of a semiconductor can be controlled over a wide range, either permanently or dynamically.

There are several materials that are used to make a semiconductor. The basic requirement of a semiconductor is that it should not be a very good conductor of electricity, nor should it be a very bad conductor of electricity. It’s properties can be changed by adding or removing atoms. Silicon is the most widely used semiconductor material. Few other materials used in making semiconductor are germanium, gallium arsenide, and silicon carbide.

Here is list of NEXT top 40 semiconductor manufacturers in the world. This list includes silicon wafer manufacturers, fabless semiconductor companies and companies that manufacture everything related to semiconductors.

Crocus Technology: Manufacturers of Magnetic Random Access Memory (“MRAM”) products and technologies for the semiconductor and electronic systems industries.

Dynex Semiconductor: Manufacturer of power semiconductors, IGBTs, SCRs, GTO Thyristors, fast recovery and rectifier diodes, SCR/Diode modules, power assemblies, SAW filters and SOS ICs.

IM Flash Technologies: IM Flash Technologies is a joint venture of Micron Technology and Intel. Providers of advanced semiconductor solutions and NAND flash products.

Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) was founded in 1987 by Chung Mou Chang with its headquarters in Hsinchu, Taiwan. The company is the largest manufacture and exporter of integrated circuits (IC) and silicon wafer in Cleanroom Environment.

The company holds over 56% Global Market Share of the Semiconductor Industry. Semiconductor ICs manufactured by TSMC are used by almost all Top Semiconductor Companies in the World including – AMD, Apple, ARM, Broadcom, Marvell, MediaTek, and Nvidia.

TSMC ICs are used in almost all electronic products and gadgets including – Desktop PC and Laptop and Peripheral products, Printers, Tablets and Smartphones, IT Products, Communications Products, Medical, Automotive and Industrial Equipment, Video Players and Gaming Consoles, TV and Digital Camera, and most other Consumer Electronics Products.

Advantest (TSE: 6857) is the leading manufacturer of automatic test and measurement equipment used in the design and production of semiconductors for applications including 5G communications, the Internet of Things (IoT), autonomous vehicles, high performance computing (HPC) including artificial intelligence (AI) and machine learning, and more. Its leading-edge systems and products are integrated into the most advanced semiconductor production lines in the world. The company also conducts R&D to address emerging testing challenges and applications; develops advanced test-interface solutions for wafer sort and final test; produces scanning electron microscopes essential to photomask manufacturing; and offers system-level test solutions and other test-related accessories. Founded in Tokyo in 1954, Advantest is a global company with facilities around the world and an international commitment to sustainable practices and social responsibility.

Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible a better future.

ASML is a leading supplier to the semiconductor industry. The company provides chipmakers with hardware, software and services to mass produce the patterns of integrated circuits (microchips). Together with its partners, ASML drives the advancement of more affordable, more powerful, more energy-efficient microchips. ASML enables groundbreaking technology to solve some of humanity"s toughest challenges, such as in healthcare, energy use and conservation, mobility and agriculture. ASML is a multinational company headquartered in Veldhoven, the Netherlands, with offices across Europe, the US and Asia. Every day, ASML’s more than 33,100 employees (FTE) challenge the status quo and push technology to new limits. ASML is traded on Euronext Amsterdam and NASDAQ under the symbol ASML.

ASMPT (HKEX stock code: 0522) is a leading global supplier of hardware and software solutions for the manufacture of semiconductors and electronics. Headquartered in Singapore, ASMPT’s offerings encompass the semiconductor assembly & packaging, and SMT (surface mount technology) industries, ranging from wafer deposition, to the various solutions that organise, assemble and package delicate electronic components into a vast range of end-user devices, which include electronics, mobile communications, computing, automotive, industrial and LED (displays). ASMPT partners with customers very closely, with continuous investment in R&D helping to provide cost-effective, industry-shaping solutions that achieve higher productivity, greater reliability and enhanced quality.

Edwards is the leading developer and manufacturer of sophisticated vacuum products, exhaust management systems and related value-added services. These are integral to manufacturing processes for semiconductors, flat panel displays, LEDs and solar cells; are used within an increasingly diverse range of industrial processes including power, glass and other coating applications, steel and other metallurgy, pharmaceutical and chemical; and for both scientific instruments and a wide range of R&D applications. Edwards has around 7,000 employees worldwide engaged in the design, manufacture and support of high technology vacuum and exhaust management equipment and has state-of-the-art manufacturing facilities in Europe, Asia and North America. Edwards is part of the Atlas Copco Group (NASDAQ OMX Stockholm: ATCO A, ATCO B), a Sweden-based provider of industrial productivity solutions.

EV Group (EVG) is a leading supplier of equipment and process solutions for the manufacture of semiconductors, microelectromechanical systems (MEMS), compound semiconductors, power devices and nanotechnology devices. Key products include wafer bonding, thin-wafer processing, lithography/nanoimprint lithography (NIL) and metrology equipment, as well as photoresist coaters, cleaners and inspection systems. Founded in 1980, EV Group services and supports an elaborate network of global customers and partners all over the world.

FormFactor, Inc. (NASDAQ: FORM), is a leading provider of essential test and measurement technologies along the full IC life cycle - from metrology and inspection, characterization, modeling, reliability, and design de-bug, to qualification and production test. Semiconductor companies rely upon FormFactor"s products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America.

Founded in 1980 for the development of Korea semiconductor-based industry, Hanmi Semiconductor has grown steadily into a world-class semiconductor manufacturer and now we are the leading designer, developer & manufacturer of semiconductor equipment industry. Our success has been based on a number of factors such as the best assembly systems, efficiency of production, ongoing R&D investment & high-tech modules through 25 years quality improvement.

Hitachi High-Tech, headquartered in Tokyo, Japan, is engaged in activities in a broad range of fields, including Analytical & Medical Solutions (manufacture and sales of clinical analyzers, biotechnology products, and analytical instruments), Nano-Technology Solutions (manufacture and sales of semiconductor manufacturing equipment and analysis equipment), and Industrial Solutions (providing high value-added solutions in fields of social & industrial infrastructures and mobility, etc.).

HORIBA, Ltd. manufactures and sells instruments and systems for various applications. It operates in five segments: Automotive, Process & Environmental, Medical-Diagnostic, Semiconductor, and Scientific. The Automotive segment offers automotive emission analyzers, emission measurement systems, drive line test systems, engine test and fuel cell test systems, and battery test systems; test systems for engines, chassis, powertrains, brakes, and catalysts; and vehicle development engineering and testing engineering services, as well as leases and manages R&D facilities.

Jiangsu ASIA Electronics is a wet process equipment manufacturer in the semiconductor wafer manufacturing industry. It focuses on the wet etching and cleaning technology of the wafer front-end. It is one of the first domestic enterprises to promote the localization of high-end semiconductor equipment. Based on independent innovation, the company has formed a business model integrating R&D, design, production and sales, providing efficient wet process solutions for domestic and foreign wafer manufacturers.

KOKUSAI ELECTRIC designs, manufactures, and services thermal thin film processing solution systems. Our diffusion and deposition systems can be found in the majority of semiconductor fabrication plants worldwide.

Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam’s equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research (Nasdaq: LRCX) is a FORTUNE 500® company headquartered in Fremont, Calif., with operations around the globe.

Established in 1974, Plasma-Therm is a global manufacturer of advanced plasma processing equipment, providing etch, deposition, surface modification, and plasma dicing technologies to the specialty semiconductor markets, including wireless communication, power devices, MEMS, photonics, advanced packaging, memory and storage, and R&D. Plasma-Therm"s products have been adopted globally and have earned their reputation for value, reliability, and world-class support. Sales and service locations throughout North America, Europe and Asia-Pacific meet the diverse needs of Plasma-Therm’s global customer base.

Teradyne (NASDAQ:TER) brings high-quality innovations such as smart devices, life-saving medical equipment and data storage systems to market, faster. Its advanced test solutions for semiconductors, electronic systems, wireless devices and more ensure that products perform as they were designed. Its Industrial Automation offerings include collaborative and mobile robots that help manufacturers of all sizes improve productivity and lower costs. In 2021, Teradyne had revenue of $3.7 billion and today employs over 6,000 people worldwide.

Tokyo Electron Limited (TEL) is a leading global company of semiconductor and flat panel display (FPD) production equipment, TEL engages in development, manufacturing, and sales in a wide range of product fields. All of TEL"s semiconductor and FPD production equipment product lines provide the foundation for the information industry, and also serves as core technologies that support innovations and enable the evolution of wide-ranging electronic devices. TEL provides outstanding products and services to customers through a global network in the U.S., Europe, and Asia.

VAT is the leading global developer, manufacturer and supplier of high-end vacuum valves. VAT vacuum valves are mission-critical components for advanced manufacturing processes of innovative products used in daily life such as portable devices, flat screen monitors or solar panels. VAT is organized into two different reporting segments: Valves and Global Service offering high-end vacuum valves, multi-valve modules, edge-welded bellows and related value-added services for an array of vacuum applications. VAT Group is a global player with over 2’500 employees and main manufacturing sites in Haag (Switzerland), Penang (Malaysia) and Arad (Romania).