Gartner Research

Will Fabless ASIC Companies Take Over?

Published: 05 March 2001

ID: G0095794

Analyst(s): Bryan Lewis, Luke Collins


The fabless ASIC company is a logical progression of the trend to outsourcing in the semiconductor business. Fabless ASIC companies should have an advantage over traditional ASIC companies because of the reduced capital burden of their business models. Compared to design houses, fabless ASIC companies win by being paid for both design support and chip delivery, overcoming the business scalability issue that dogs traditional design service companies. But fabless ASIC companies will have to work hard to convince customers they can guarantee chip deliveries from fabs they do not control.

Table Of Contents
  • Introduction
  • What Is a Fabless ASIC Company?
  • Why Have Fabless ASIC Companies Emerged?
  • Advantages of the Fabless ASIC Model
  • Disadvantages of the Fabless ASIC Model
  • The Key to a Fabless ASIC Company — Access to Capacity
  • Impact on Traditional ASIC Companies
  • Impact on Semiconductor Foundries
  • Impact on Current Design Houses
  • Gartner Dataquest Perspective

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