The Stages of Chipmaking and India's Place

The main stages of making a chip - design, fabrication and assembly and testing - and where India currently fits in the global chain.

Making a chip involves several distinct stages, often done by different companies in different countries.

1. Design

Engineers design the chip’s circuits using specialised software. Companies that only design chips are called fabless companies, like Nvidia, Qualcomm and AMD.

2. Fabrication

Fabs (fabrication plants) manufacture chips on silicon wafers using hundreds of precise steps in ultra-clean rooms. Leading foundries include TSMC and Samsung. This is the most capital-intensive stage.

3. Assembly, testing, marking and packaging (ATMP/OSAT)

Chips are cut from wafers, packaged into protective cases, tested and marked. Companies doing this are called OSATs (outsourced semiconductor assembly and test). Malaysia and other Asian countries are major players.

Supporting industries

Equipment makers.
Materials: ultra-pure chemicals, gases and silicon wafers.
Design software.

India’s place

Design: India is a major hub, with many global chip companies running large design centres in Bengaluru, Hyderabad and Noida.
Fabrication: India’s first commercial fab is being built.
ATMP/OSAT: several assembly and testing plants have been approved.

Why start with ATMP?

Assembly and testing needs less capital and technology than fabs, making it a more realistic starting point that builds skills and ecosystems.

The chip's journey

A chip designed in Bengaluru for a US company is fabricated in Taiwan, packaged in Malaysia and finally installed in a phone assembled in India. India touches the chip at the start and end, but not in the middle.

Thinking one company makes a chip from start to finish

Design, fabrication and packaging are often done by different firms in different countries.

Key takeaways

Chipmaking has three main stages: design, fabrication and ATMP/OSAT.
Fabrication is the most capital-intensive.
India is strong in design and is building fabs and ATMP plants.
ATMP is a more realistic starting point than advanced fabs.