Turning Fixed Costs into Variable Costs: Foundries and Clouds
July 27, 2018
One trend that has been accelerating for a couple of decades is turning fixed costs into variable costs. Often this is what is behind outsourcing some capability. Sometimes it is driven purely by lower variable costs (let's hire a team in Shanghai) or core-competence considerations (we don't really need to run our own cafeteria). However, often it is driven by a desire to switch an inflexible fixed cost for a variable cost. The biggest of these trends in our industry is the foundry/fabless model. Instead of a semiconductor company building their own fab (fixed cost), they buy wafers from foundries (variable costs).
To read the full article, click here
Related Semiconductor IP
- Root of Trust (RoT)
- Fixed Point Doppler Channel IP core
- Multi-protocol wireless plaform integrating Bluetooth Dual Mode, IEEE 802.15.4 (for Thread, Zigbee and Matter)
- Polyphase Video Scaler
- Compact, low-power, 8bit ADC on GF 22nm FDX
Related Blogs
- AI will be increasingly important in EDA, reducing design costs and supporting engineers
- 3 steps to shrinking your code size, your costs, and your power consumption
- Another issue on design outsourcing: what about the other costs?
- Wafer Costs: Out of Control or Not?
Latest Blogs
- Cadence Announces Industry's First Verification IP for Embedded USB2v2 (eUSB2v2)
- The Industry’s First USB4 Device IP Certification Will Speed Innovation and Edge AI Enablement
- Understanding Extended Metadata in CXL 3.1: What It Means for Your Systems
- 2025 Outlook with Mahesh Tirupattur of Analog Bits
- eUSB2 Version 2 with 4.8Gbps and the Use Cases: A Comprehensive Overview