Understanding a Fabless Company

Technology / Saturday, August 8th, 2020

The term fabless company is not a one that you will encounter in your everyday life. If someone asked you what a fabless company is, you’d probably be lost for words. The name “Fab” is derived from “fabrication.” As such, a fabless company design sells and markets semiconductor chips. However, it is not involved in the fabrication of these products. Companies engaged in manufacturing various devices like phones and computers can get information on services for Fabless Semiconductor design Here from a market leader in the field. 

What Fabless Companies Do?

Many people think that fabless companies own semiconductor fabrication machinery, but that’s far from the truth. These companies don’t have plants that manufacture integrated circuits and other related devices. They outsource these services from other companies that have semiconductor plants. Why so? A semiconductor foundry needs a high production capacity to function properly.

To run such a factory, you need to pump in massive capital. This makes it not only a risky venture but also capital intensive. That said, a fabless company outsources the fabrication of hardware and chips to established semiconductor plants.

Here is a list of some renowned fabless companies

  • 3Dlabs
  • Advanced Micro Devices ( AMD)
  • Cirrus Logic
  • Xilinx
  • Qualcomm
  • Synopsys
  • Cadence Design Systems
  • Nvidia
  • Marvell

The companies we have mentioned above are all based in the U.S. However; we have Bae Systems, Arm Holdings, and Dialog Semiconductors in the U.K. You also have probably had of Toshiba and NEC, which are fabless corporates from Japan. In China, we have HiSilicon, Unigroup, and Brite Semiconductor. Other countries such as Israel, Singapore, Germany, and more also have a few fabless companies.

History of the Fabless Companies

The first fabless company, which was known as the Western Design Centre, was launched in 1978. Later on, in 1984. Xilinx would emerge. Xilinx is credited with the separation of the manufacture and the design of semiconductor chips. Before that, companies that needed semiconductor hardware and chips had to manufacture them, instead of outsourcing.

Importance of Fabless Companies

devices made with semi-conductors from fabless comapyIf you use a smartphone, then you are certainly using a device with some components from a fabless company. There are many companies that need these chips, including computer and phone giants. Fabless companies are invaluable to technological advancements. They contribute to the supply chain in the semiconductor industry. They also employ lots of people. The fabless concept is a phenomenon. It continues to drive the world economy as well as sustain technology immensely.