Semiconductor industry and market
Which is an appropriate reason the division of labor between foundries and fabless companies spread?
- ABecause manufacturing technology became simple
- BBecause investment in advanced fabs became huge, making it more efficient to separate design and manufacturing
- CBecause demand for semiconductors fell
Show answer and explanation
Answer: B. Because investment in advanced fabs became huge, making it more efficient to separate design and manufacturing
Building an advanced fab requires huge investment, and it became hard to fill a fab with one company's products alone. Concentrating manufacturing at specialized foundries lets many customers share equipment, and design companies can focus on product development without owning fabs. This is how the division of labor spread.