Commentary / Analysis: Real men have fabs, but maybe not Infineon, NXP, TI and ST.
-- In the wake of the fab-lite strategies, possibly moving to fabless strategies, of NXP, Infineon, Texas Instruments and STMicroelectronics, the pros and cons of having a fab were listed during IFS2007 in London this week organised by analysts Future Horizons.
The first argument is the cost argment. Some say that, at $3bn, fabs are too expensive. But if you look at their cost in relation to the market size, their cost is the same.
A fab cost $40m in 1970 when the industry TAM was $2.4bn; they cost $330m in 1985 when the TAM was $21.5bn; they cost $3bn in 2005 when the TAM was $245bn. That’s a 14.1 per cent CAGR over 25 years fro both the market and the fab-cost. So there’s no change in cost.
“It’s just that you have to bet the company when you build a fab, and people have lost the stomach for betting the company”, said Future Horizons CEO, Malcolm Penn
To read the full article, click here
Related Semiconductor IP
- Rad-Hard GPIO, ODIO & LVDS in SkyWater 90nm
- 1.22V/1uA Reference voltage and current source
- 1.2V SLVS Transceiver in UMC 110nm
- Neuromorphic Processor IP
- Lossless & Lossy Frame Compression IP
Related News
- Analyst sours on Infineon, ST but touts ARM
- Real Countries Have Fabs
- Commentary: Why we don't have IP quality yet (by Larry Cooke, VSI)
- ASICs going but not gone, panel says
Latest News
- SignatureIP Achieves PCI-SIG® PCIe® 5.0 Certification, Joining Elite Group on Official Integrators List
- GUC Monthly Sales Report – August 2025
- eSOL and Infineon Enter Strategic Partnership for Next-generation Automotive Platforms Based on RISC-V/TriCore/Arm Microcontrollers
- Synopsys and GlobalFoundries Establish Pilot Program to Bring Chip Design and Manufacturing to University Classrooms
- Cadence to Acquire Hexagon’s Design & Engineering Business, Accelerating Expansion in Physical AI and System Design and Analysis