Published: 05 March 2001
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.
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