Building the Semiconductor Material Supply Chain in India – India and Taiwan explore the alternate material route

Entity 1 Value Emissions Pvt Ltd. Announces Groundbreaking Wafers Made from Recyclable Silicon-Derived Red Mud

CHENNAI, India, Sept. 8, 2025 – Entity 1 Value Emissions Pvt Ltd. today announces a pioneering milestone: the manufacture of semiconductor wafers using silicon derived from red mud, a recyclable byproduct of aluminium production. This positions India as the first country globally to produce wafers from red-mud-derived silicon and signals a transformative shift in materials supply, sustainability, and domestic manufacturing.

For Customers:

Key Benefits

•  Stable, local supply chain: Domestic wafer production reduces dependence on imported materials, improving lead times and supply reliability.

•  Competitive pricing potential: Localized production can lower logistics costs and price volatility associated with global supply disruptions.

•  Sustainability alignment: Wafers sourced from red mud support circular economy goals, reducing industrial waste and environmental impact.

•  Quality parity: Wafers manufactured from red mud-based silica demonstrate resistivity and performance comparable to prime-material wafers.

How it affects customers’ operations

•  Risk reduction: Shorter procurement cycles and enhanced transparency across the value chain.

•  Sustainability reporting: A verifiable pathway to lower carbon and waste footprints for customers with ESG commitments.

•  Innovation enablement: Access to new materials with potential performance benefits in niche applications and advanced packaging.

What customers can expect next

•  Availability timelines and qualification programs to validate compatibility with existing fabrication lines.

•  Collaboration opportunities for co-development of process steps and device designs tailored to red mud-derived wafers.

•  Comprehensive support on wafer specifications, traceability, and compliance documentation.

Strategic Highlights

•  First-mover advantage: India becomes the first nation to manufacture wafers from red mud-derived silicon, creating a defensible early-entry position.

•  Intellectual property strength: Patented process for converting red mud into high-purity silica suitable for wafers enhances moat and potential licensing avenues.

•  Domestic market localization: Strengthens Make in India initiatives, reducing import risk and enabling rapid scale-up with local suppliers and talent.

•  Global validation pathway: Verification by HIT, Taiwan, in collaboration with industry leaders (TSMC, Foxconn) provides credibility and a potential premium for high-assurance supply.

Financial and Market Implications

•  Revenue diversification: Introduction of a new silicon source expands the wafer market beyond traditional feedstocks.

•  Capital efficiency: Localized production may improve gross margins over time as scale increases and logistics costs compress.

•  ESG and incentives: Alignment with sustainability goals can unlock government incentives, subsidies, or favourable procurement programs for domestic manufacturing.

Milestones to Watch

1.  Completion of customer qualification programs with key fabs.

2.  Scale-up milestones for domestic red mud-derived silica production.

3.  Revenue pilots and metrics from initial customers.

4.  Expansion into additional silicon-derived materials for packaging and advanced applications.

About the Initiative

Red mud, a byproduct of aluminium production, has posed disposal and environmental challenges. Entity 1 Value Emissions Pvt Ltd. is converting this residue into a valuable, high-purity silica suitable for semiconductor wafers. This aligns with national goals to bolster domestic manufacturing, reduce waste, and create resilient supply chains.

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