What is the value chain for microchips?

The value chain for microchips refers to the series of activities involved in the production and distribution of these integral components of electronic devices. It includes multiple stages such as research and development, design, fabrication, assembly, testing, and distribution. At the beginning of the value chain, research and development focus on innovative and advanced chip designs that meet specific market needs. The design stage involves translating these concepts into blueprints for fabrication. Fabrication, also known as wafer manufacturing, is the process of producing the microchips on silicon wafers. After fabrication, assembly involves packaging individual chips into integrated circuit packages or modules. Once assembled, the chips undergo rigorous testing to ensure they meet the required quality standards. Finally, the distribution stage involves getting the microchips to original equipment manufacturers and various buyers, who incorporate them into their products. Throughout the entire value chain, factors such as cost, time, quality, and innovation play crucial roles in determining the success of microchip manufacturers.

Microchips Value Chain Semiconductor Industry Manufacturing Process Supply Chain