Chennai-based Entity 1 Value Emissions Pvt. Ltd. on Monday said it has developed semiconductor wafers using silicon extracted from red mud, a recyclable byproduct of aluminum production, making India the first country to produce wafers from the industrial residue.
The company stated that the innovation could strengthen India’s semiconductor material supply chain, reduce dependence on imports, and cut environmental waste, thereby positioning the country as an early mover in alternative wafer sources.
Local Supply Chain Push
Entity 1 said the use of red mud-derived silicon allows a stable, domestic supply of wafers. Localized production could lower procurement risks for Indian and overseas chipmakers, reduce logistics costs and ease price volatility tied to global supply disruptions.
The company said wafers manufactured from red mud show resistivity and performance on par with wafers made from prime silicon, suggesting they could be used without significant changes to existing fabrication lines.
Taiwan Validation and Industry Links
The technology is undergoing verification by Taiwan’s HIT in collaboration with industry leaders, including Taiwan Semiconductor Manufacturing Co. and Foxconn, Entity 1 said.
Independent validation could enhance credibility in global markets and support early adoption by fabrication plants, it added.
India has been working to attract investment into semiconductor manufacturing and materials as part of its “Make in India” initiative. Tighter cooperation with Taiwan, one of the world’s semiconductor hubs, reflects New Delhi’s push to diversify supply sources and improve resilience.
Sustainability and ESG Advantage
Red mud, a residue from aluminum refining, has been considered an environmental liability due to disposal challenges.
Converting it into high-purity silica suitable for wafers supports circular economy goals and helps manufacturers align with sustainability targets.
Entity 1 said its technology provides chipmakers with a verifiable pathway to cut carbon emissions and industrial waste, which could strengthen reporting against ESG commitments.
Market and Financial Outlook
The company expects the alternative wafer source to diversify revenues in the global semiconductor supply chain.
Local production could improve gross margins over time as scale grows, while also making firms eligible for government incentives and subsidies linked to sustainable manufacturing.
Upcoming milestones include qualification programs with fabrication plants, revenue pilots from initial customers and potential expansion into materials for advanced packaging.
Entity 1 said its patented process for converting red mud into semiconductor-grade silicon could also open licensing opportunities in overseas markets.
