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  2. The fabless chip model developed in the 1980s when smaller chipmakers were left with a surplus of products in a tough-to-crack market. Fabless companies are typically headquartered in areas where production would be more costly, while the foundries are located where labor costs are cheaper.
    www.investopedia.com/ask/answers/050615/what-are-fabless-chip-makers-and-why-are-they-important-semiconductor-market.asp
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    What is fabless chip business model?The iconic brand focuses on design and marketing. This plays to its strengths and has been determined by the company to be more cost-effective. The fabless chip business model enables companies to design and sell semiconductors used in everything from smartphones to vehicles to medical devices without having to manufacture them.
    Can fabless companies outsource the manufacturing of semiconductor chips?With a business strategy where fabless companies can outsource the manufacturing of the semiconductor chips, the fabless companies can instead focus on and focus their time, efforts and resources to develop new ideas, invest in research, and improve their marketing strategies to drive their sales.
    Who makes fabless chips?For example, Dutch semiconductor company ASML, a pioneer in extreme ultraviolet lithography, makes tools used by the Taiwan Semiconductor Manufacturing Company (TSMC) and other chipmakers. The list of top 10 fabless chipmakers worldwide includes six U.S. companies: Qualcomm, Broadcom, Nvidia, AMD, Marvell, and MPS.
    How did the fabless business model start?This surplus, combined with the continued growth of the semiconductor industry, led to the creation of the fabless business model. The first foundry, Taiwan Semiconductor Manufacturing Company, came on board in 1987 and remains the largest independent manufacturer of silicon components in the world.
     
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