Semiconductor Value Chain
Design vs Fabrication
The global semiconductor industry operates on a design-fabrication split model. "Fabless" companies design chips but outsource manufacturing to dedicated foundries (e.g., TSMC, Samsung Foundry, GlobalFoundries). Design encompasses architecture definition, RTL coding, physical design, verification, and tape-out — the final stage where design files are sent to the foundry for mask creation and fabrication.
- Tape-out is the critical milestone marking the end of the design phase and beginning of the manufacturing process; the term originates from the historical practice of sending design data on magnetic tape to fabs
- The design file format is GDSII (Graphic Data System), which contains geometric descriptions of every layer of the chip
- The fabless model allows countries to participate in the semiconductor value chain without building multi-billion-dollar fabrication plants
- India's strength lies in the design segment; fabrication is being developed through ISM-approved fab projects by Tata Electronics, CG Power, and Micron (packaging)
● Tracked since February 07, 2026 · last seen July 18, 2026 · updates as the daily brief publishes
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