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  2. Fabs (short for “fabrication”) are facilities in which semiconductor products are manufactured. Fabless companies focus on designing chips. They partner with other companies (foundries) for the manufacturing phase. Foundries are companies that manufacture semiconductor products as a service. They do not design chips.
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    What is the difference between fabless and Foundry?IDMs design and manufacture integrated circuits (ICs), fabless companies focus only on IC design, and foundry companies are concerned only with IC manufacturing. The business model resulting when fabless and foundry companies form a strategic alliance is called the fabless-foundry model.
    What is the difference between a fab and a foundry?Fabs (short for “fabrication”) are facilities in which semiconductor products are manufactured. Fabless companies focus on designing chips. They partner with other companies (foundries) for the manufacturing phase. Foundries are companies that manufacture semiconductor products as a service. They do not design chips.
    Why do fabless companies need foundries?Foundries play a vital role in enabling fabless companies to bring their chip designs to life. They offer scalability and access to state-of-the-art fabrication processes without the need for large capital investments. Foundries are not limited by geography and often have a global presence.
    What is fabless manufacturing?Fabless manufacturing is the design and sale of hardware devices and semiconductor chips while outsourcing their fabrication (or fab) to a specialized manufacturer called a semiconductor foundry. These foundries are typically, but not exclusively, located in the United States, China, and Taiwan.
     
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