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What comes after fab-lite? The emergence of focused-manufacturing & collaborative-partnership models
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Len Jelinek, iSuppli Corp., California, USA
ABSTRACT
Since the great semiconductor crash of 2001, Integrated Device Manufacturers (IDMs) have largely adhered to a business model that minimizes fab costs by outsourcing production of their legacy parts to foundries: the so-called ‘asset-lite’ approach. However, it has since become clear that IDMs need a new manufacturing model, one better suited to promoting sustainable growth. IDMs are now contemplating two new models that could potentially revitalize the global semiconductor manufacturing industry: focused manufacturing and collaborative partnerships. In this paper, iSuppli Corp. examines these business models, and the industry forces that have led to their development.
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