Semiconductor industry and market
Which correctly describes a 'fabless' company?
- AA company that handles everything from design to manufacturing and sales in-house
- BA company that has no manufacturing plants of its own and specializes in design and sales
- CA company that takes on only back-end semiconductor processes on contract
Show answer and explanation
Answer: B. A company that has no manufacturing plants of its own and specializes in design and sales
Fabless means a company without a manufacturing plant (fab). It concentrates its resources on design and sales and outsources manufacturing to foundries. A company that does everything from design to manufacturing in-house is called an IDM (integrated device manufacturer), and a company that does back-end work on contract is called an OSAT.