India’s chip fabs still depend on imported ultra-pure chemicals

santoshpanda · x · 2026-07-22

India is pouring ₹1.64 lakh crore into chip factories, but those fabs depend on ultra-pure chemicals that India still imports 85%–90% of from Japan, Korea, and Germany.

One Indian company has produced its first semiconductor-grade batch that passed quality tests, but management says it still needs 3–4 more rounds of testing over roughly two years before meaningful sales can start. The post highlights how unforgiving fab chemistry is: purity is measured in parts per billion, tiny contamination can ruin batches worth crores, and chipmakers are reluctant to switch suppliers once qualified.

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