How Semiconductor Chips Are Made Step by Step in India (Materials, Design, Cost & Manufacturing)

How Semiconductor Chips Are Made Step by Step in 2026

What Is a Semiconductor Chip?

A semiconductor chip, also known as an integrated circuit (IC), is a silicon-based electronic device containing millions or billions of transistors. These transistors process data, store information, and control electronic operations. By integrating all components onto a single chip, semiconductor technology enables devices to be smaller, faster, and more energy-efficient.

Semiconductor chips are made by purifying silicon, converting it into wafers, creating transistor patterns using photolithography, doping, etching, adding metal interconnections, and finally packaging and testing the chip. The complete manufacturing process takes 12–16 weeks and requires ultra-clean environments called cleanrooms. requires ultra-clean environments called cleanrooms. provides long-term stability for EEE graduates.

How Semiconductor Chips Are Made Step by Step

Step 1: Silicon Purification

Semiconductor manufacturing begins with sand (silicon dioxide). The sand is heated with carbon in high-temperature furnaces to remove oxygen, producing raw silicon.

This silicon is then chemically purified until it reaches electronic-grade purity (99.9999999%).

Step 2: Crystal Growth (Ingot Formation)

Purified silicon is melted and a crystal seed is slowly pulled from the molten silicon.

This process, known as the Czochralski method, forms a cylindrical single-crystal silicon ingot.

Step 3: Wafer Cutting and Polishing

The ingot is sliced into thin circular discs called silicon wafers using diamond blades.

These wafers are polished until their surfaces are atomically smooth, which is essential for nanoscale circuits.

Step 4: Oxidation

Wafers are heated in oxygen or steam to form a thin silicon dioxide (SiO₂) layer.

This layer acts as an insulator and protects the wafer during processing.

Step 5: Photolithography

Photolithography defines circuit patterns on the wafer:

  • A photoresist layer is applied
  • UV light passes through a patterned mask
  • The exposed pattern forms transistor layouts

This step determines chip size, speed, and performance.

Step 6: Etching

Unwanted material is removed using:

  • Wet chemical etching, or
  • Plasma (dry) etching

This creates microscopic channels for transistors and interconnections.

Step 7: Doping

Doping modifies silicon’s electrical properties:

  • Boron → P-type silicon
  • Phosphorus/Arsenic → N-type silicon

Ion implantation ensures precise control of transistor behavior.

 

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Step 8: Thin Film Deposition

Thin layers are deposited using:

  • Chemical Vapor Deposition (CVD)
  • Physical Vapor Deposition (PVD)
  • Atomic Layer Deposition (ALD)

These layers serve as conductors, insulators, and protective coatings.

Step 9: Repeated Layer Formation

Steps like lithography, etching, doping, and deposition are repeated hundreds of times.

Each cycle builds more transistors and wiring layers.

Step 10: Metallization

Copper or aluminum layers form the internal wiring network of the chip.

Modern chips use multiple stacked metal layers.

Step 11: Wafer Testing

Each chip is electrically tested using automated probes.

Defective chips are identified before separation.

Step 12: Dicing

The wafer is cut into individual square units called dies using laser or diamond tools.

Step 13: Packaging

Each die is placed into a protective package and connected to external pins using:

  • Wire bonding, or
  • Flip-chip solder bumps

Packaging improves durability and heat dissipation.

Step 14: Final Testing

Packaged chips undergo performance, reliability, and stress testing.

Only fully functional chips are shipped.

Materials Needed to Make Semiconductor Chips

The main materials include:

  • High-purity silicon
  • Boron, phosphorus, arsenic (dopants)
  • Photoresist chemicals
  • Copper and aluminum
  • Specialty gases
  • Ultra-pure water

All materials must meet extreme purity standards.

How Long Does It Take to Make a Semiconductor Chip?

It takes approximately 12 to 16 weeks to manufacture a semiconductor chip.

Reasons for long production time:

  • 300+ complex processing steps
  • Cleanroom requirements
  • Multiple inspections and reprocessing
  • Precision testing at every stage

How Semiconductor Chips Are Designed

Before fabrication, chips are designed using:

  • System requirement analysis
  • RTL coding (Verilog/VHDL)
  • Functional simulation
  • Logic synthesis
  • Physical layout design
  • Timing and power analysis
  • Verification and tape-out

Only verified designs are sent to fabrication plants.

Where Are Semiconductor Chips Made in India?

India’s semiconductor ecosystem includes facilities in:

  • Gujarat
  • Tamil Nadu
  • Karnataka
  • Telangana
  • Assam

These states host fabrication, assembly, testing, and packaging units under national semiconductor initiatives.

Semiconductor Manufacturing Companies in India

Major semiconductor companies in India include:

  • Tata Electronics
  • Micron Technology India
  • CG Power and Industrial Solutions
  • Sahasra Semiconductors
  • Kaynes Semicon
  • SPEL Semiconductor

 

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Semiconductor Manufacturing Plant Cost in India

A modern semiconductor fabrication plant in India costs between:

₹25,000 crore to ₹60,000 crore+

Major cost factors:

  • Cleanroom infrastructure
  • EUV lithography machines
  • Power and cooling systems
  • Water purification plants
  • Skilled workforce

First Made in India Semiconductor Chip

Early indigenous chips were developed by Semiconductor Laboratory (SCL), Chandigarh, in collaboration with ISRO during the 1980s and 1990s.

Modern Indigenous Chips:

  • SHAKTI Processor (IIT Madras, RISC-V based)
  • VEGA Processor
  • AJIT Processor

Importance of Cleanroom Technology

Cleanrooms control:

  • Dust particles
  • Temperature
  • Humidity
  • Chemical contamination

Even a microscopic particle can destroy a chip.

Challenges in Semiconductor Manufacturing

  • Extremely small feature sizes
  • High capital investment
  • Complex yield management
  • Supply chain dependency
  • Continuous technology upgrades

Future of Semiconductor Manufacturing in India

India is expanding its semiconductor industry through:

  • Fabrication plants
  • OSAT facilities
  • Design centers
  • Skill development programs

These efforts aim to reduce import dependence and strengthen domestic production.

Key Takeaways 

  • Semiconductor chips take 12–16 weeks to manufacture
  • Silicon wafers are the foundation of chip fabrication
  • Manufacturing requires ultra-clean environments
  • India is building a strong semiconductor ecosystem
  • Indigenous chips like SHAKTI mark major progress

Conclusion

Understanding how semiconductor chips are made step by step reveals the complexity behind modern electronics. From silicon purification and circuit design to fabrication and testing, each stage demands precision and expertise.

With increasing investments and indigenous chip development, India is steadily becoming an important player in the global semiconductor industry. For engineering students and technology enthusiasts, semiconductor manufacturing offers one of the most challenging and rewarding career paths.

 

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Frequently Asked Questions

Yes. With new fabs, OSAT units, and government support, semiconductor manufacturing offers strong job growth and long-term career opportunities in India.

No. A B.Tech/BE is enough to start, but an M.Tech/MS helps for advanced design and R&D roles.

Semiconductor basics, VLSI, Verilog/VHDL, CMOS technology, EDA tools, and basic programming skills.

Author

Embedded Systems trainer – IIES

Updated On: 05-02-26


10+ years of hands-on experience delivering practical training in Embedded Systems and it's design