Semiconductor industry and market
Which correctly describes a 'foundry' in the semiconductor industry?
- AA company specializing in contract manufacturing of semiconductors designed by other companies
- BA company with no factories that specializes in semiconductor design and sales
- CA company specializing in selling parts for semiconductor manufacturing equipment
Show answer and explanation
Answer: A. A company specializing in contract manufacturing of semiconductors designed by other companies
A foundry is a contract manufacturer (company or business) that fabricates wafers from circuit data designed by customer companies. Because advanced fabs requiring huge capital investment can be shared by many customers, the division of labor with fabless companies spread.