What it is
Wafers serve as the foundational substrate for manufacturing microchips. They are typically made from highly purified single-crystal silicon, though other materials like gallium arsenide are used for specialized applications. After being grown into large ingots, the silicon is sliced into thin discs, polished to extreme flatness, and then subjected to a multi-step fabrication process where thousands of individual integrated circuits are built simultaneously on its surface.
The size of a wafer, commonly 200mm or 300mm in diameter, impacts manufacturing efficiency; larger wafers allow more chips per batch, reducing per-chip cost. News often covers advancements in wafer processing, such as the transition to 450mm wafers, which signifies a major industry shift. The quality of wafers and the advanced processes applied to them are critical factors affecting chip yield and the overall cost-effectiveness of semiconductor production.
Why it matters
Wafers are the raw material for chips; their size, quality, and processing directly influence chip manufacturing costs, efficiency, and ultimately, chip availability.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice