Semiconductor industry and market

Which business model keeps fab investment down by making some products in its own fabs while outsourcing leading-edge products and the like to foundries?

  1. AFabless
  2. BFab-lite
  3. COSAT
Show answer and explanation

Answer: B. Fab-lite

In the fab-lite model, products on mature processes or where the company has strengths are made in its own fabs, while products on leading-edge processes requiring huge investment are outsourced to foundries. It sits between fabless, which owns no fabs, and IDM, which does everything in-house, retaining manufacturing know-how while limiting the investment burden.

  • A. Fabless means owning no manufacturing fabs.
  • B. Correct. It is a model that keeps fabs light.
  • C. An OSAT is a company that provides back-end services under contract.
Practice this topic Back to topic

More Semiconductor industry and market questions

  1. Which correctly describes the book-to-bill (BB) ratio, used as an indicator of the semiconductor equipment market?
  2. In semiconductor and other manufacturing, what is the tendency called for the cost per unit to fall by a fixed percentage each time cumulative production doubles?
  3. For leading-edge logic chips, which is closest to the typical time from starting a wafer on the production line to completing the front-end process?
  4. What is it called when an equipment maker arranges to procure an equivalent product from another supplier as well, in case supply of a particular chip stops?
  5. When a chipmaker announces the end of life (EOL) of a product, what is it called when equipment makers using it buy, one last time, the quantity they will need for future maintenance and production?