What Is a Fabless Company?

A fabless company is also known as an IC designer. It refers to those semiconductor companies that only engage in wafers, that is, the design, development, application, and sales of chips, and outsource wafer manufacturing to professional wafer foundries.

Fabless model company

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Fabless companies are also known as IC designers, meaning those who

Most semiconductor fabs use the fabless model because the construction of fabs requires huge investments of hundreds of millions or even billions of dollars, and the production process is becoming more and more complex, so the current semiconductor industry has formed wafer IC design and wafer foundry Professional division of labor model. Among them, IC design is divided into pure valet design: that is, designing and developing IC chips according to customer requirements, and internal IC design: that is, only IC designs that serve internal electronic products. Representatives of the former are listed in the United States, such as SMIC, Zhuhai Juli, etc., and representatives of the latter are large electronic product manufacturers such as ZTE (000063) and Huawei. IC design is a fast-growing industry in China, and iSuppli expects its output value to exceed $ 1 billion by 2008. ^[1]