Material Insights · Understanding the Material World

Semiconductors: Follow one offering through the chain

Chip designers and fabs making logic, memory, analogue and power chips from silicon

Follow one offering through the chain

3 Example story · 7 steps · India

A memory chip packaged in Sanand

Follow a Micron memory package from design software and Taiwanese fabs to a Gujarat test line and the device makers who buy it.

1 / 7 · Design tools and IP

Drawn first in design software

>85%three firms' share of EDA tools

Before any silicon is touched, Micron engineers lay out billions of memory cells and their control circuits in electronic design automation software and simulate them for months. Three vendors, Synopsys, Cadence and Siemens EDA, hold over 85% of a tool market worth roughly US$ 18 billion in 2025, so every memory maker designs on the same few platforms.5

Constraint A US-dominated chokepoint already used as an export-control lever; India has no design-tool vendor at scale. DC Data centresDist Distribution grids, mini-grids and interconnectorsSoftware and IT servicesData centres and cloud
2 / 7 · Equipment and materials

Printed with extreme ultraviolet light

87%ASML's share of lithography

The memory is patterned, deposited and etched by tools that cost up to hundreds of millions of dollars each. In 2025 Micron began shipping its 1-gamma DRAM, its first node made with extreme ultraviolet lithography. Only one company, the Dutch firm ASML, builds EUV scanners, and it held 87% of the lithography market (SIA-BCG, 2024), so its deliveries pace every leading memory fab.1,2

Constraint One EUV supplier, with exports controlled by the Dutch and US governments; no other route prints leading-edge DRAM. St SteelAl AluminiumREE Rare earthsPTFE Fluoropolymers (PTFE, PVDF)Machinery and equipmentElectrical equipment
3 / 7 · Equipment and materials

Discs of near-perfect silicon

12,973million sq in of wafers, 2025

Memory cells are built on 300 mm discs sliced from single-crystal ingots grown out of ultra-pure polysilicon, then polished almost perfectly flat. The world shipped 12,973 million square inches of silicon wafers in 2025, up 5.8%, yet revenue slipped 1.2% to US$ 11.4 billion. Most 300 mm wafers come from five firms in Japan, Taiwan, Germany and Korea.6,2

Constraint A handful of suppliers make most 300 mm wafers and qualifying a new one takes many months; India has no wafer maker. pSi PolysiliconSi SiliconAr ArgonHF Hydrofluoric acidMachinery and equipment
4 / 7 · Equipment and materials

Gases and acids of extreme purity

US$ 73bnchip materials market, 2025 (SEMI)

Each wafer passes through hundreds of steps using photoresists, ultra-pure acids, polishing slurries and specialty gases such as nitrogen trifluoride and tungsten hexafluoride. These come mainly from Japanese, US and European firms; SEMI put the chip materials market at a record US$ 73.2 billion in 2025, US$ 45.8 billion of it for wafer fabs, and any change of chemical must be requalified.9

Constraint Photoresists and several gases have few qualified makers, so a single plant outage or helium shortage slows fabs worldwide. PR PhotoresistsESG Electronic specialty gasesUPW Ultra-pure wet chemicalsHe HeliumF FluorsparWater and sanitation
5 / 7 · Wafer fabrication

Memory wafers made in Taiwan

$28.6bnMicron DRAM revenue, FY2025

Micron is an integrated device maker: it designs and makes its own chips rather than paying a foundry. Most of its 2025 DRAM output came from its fabs in Taiwan, with others in Japan, Singapore and the United States, and DRAM brought in US$ 28.58 billion of its 2025 revenue. Finished DRAM and NAND wafers are then shipped to back-end sites such as Sanand.1,7

Constraint SK hynix, Samsung and Micron took about 92% of DRAM revenue in Q3 2025 (calculated); fabs need firm power and vast ultra-pure water. H₂O WaterCu CopperW TungstenESG Electronic specialty gasesHVAC AC transmissionMachinery and equipmentWater and sanitation
6 / 7 · Assembly, test and packaging

Cut, stacked and tested in Gujarat

₹22,516crMicron Sanand investment

At Sanand, inaugurated on 28 February 2026, Micron dices imported DRAM and NAND wafers, mounts and wires the dies into packages, tests them and builds SSDs, doing in-house the work that outsourced assembly and test firms do for others. The ₹22,516 crore plant will have about 500,000 sq ft of cleanroom and some 5,000 direct jobs when ramped up.8,3,2

Constraint Every wafer is imported, and China and Taiwan host nearly 60% of world packaging capacity, Sanand's main competition. Au GoldCu CopperEPX Epoxy resinsSn TinN2 Nitrogen gasMachinery and equipmentWater and sanitation
7 / 7 · Distribution to device makers

Into phones, PCs and servers

$45-50bnIndia's annual chip consumption

Finished memory goes to device makers directly or through component distributors that hold stock and support smaller electronics firms. Much of Sanand's output is meant for export, but the home market is large: India's chip consumption is put at US$ 45-50 billion and projected to reach US$ 100-110 billion by 2030 as phone, PC and server assembly grows.4,3

Constraint India's chip demand may double by 2030, yet almost every chip it uses is still fabricated abroad. Bld Energy in buildingsJet Aviation propulsionTransport and logisticsSoftware and IT services

What the chain shows

India has entered the chain at packaging, the step needing least capital; design software, tools, wafers and chemicals remain chokepoints held abroad.

Sources
  1. Micron Technology Form 10-K for fiscal 2025 Micron Technology via US SEC, 2025
  2. Emerging Resilience in the Semiconductor Supply Chain Semiconductor Industry Association and Boston Consulting Group, 2024
  3. Micron's Rs 22,516 crore bet on India: what the Sanand facility will produce and why it matters Business Today, 2026
  4. India Semiconductor Mission backgrounder Press Information Bureau, Government of India, 2026
  5. EDA market primer SemiAnalysis, 2025
  6. SEMI reports 2025 annual worldwide silicon wafer shipments and revenue results SEMI, 2026
  7. Global DRAM revenue jumps 30.9% in 3Q25 (TrendForce data) Evertiq, 2025
  8. PM to visit Gujarat on 28th February (inauguration of Micron's Sanand ATMP facility) Prime Minister's Office, Government of India, 2026
  9. Global semiconductor materials market revenue reaches record $73.2 billion in 2025 SEMI, 2026