Panelists question fabless model viability

Anne-Francoise Pele, EETimes 
(12/04/2009 5:40 AM EST)

GRENOBLE — Is fabless still fabulous? In a panel session at the IP-ESC 2009 Conference this week in Grenoble, France, panelists discussed the evolution of semiconductor business models and confronted views on whether the fabless model is dead or alive and kicking.

The semiconductor business model has evolved, from the IDM model to pure-play foundry, fabless and IP provider, design services business models. Many of these models are undergoing severe issues. "We are talking of a disaggregation of the full model," said Paul Slaby, president and CEO of Kaben Wireless Silicon Inc., wondering what is coming next.

Paul Slaby, president and CEO of Kaben Wireless Silicon Inc., proposed a break-up of the fabless model. "Time has come to break it down into pieces and get to a semi-fabless model."

This model consists of a development organization —IP-based design house, outsourced R&D operation, strength in specialized R&D and product development capabilities— and a delivery organization —product-to-market with a sales channel and outsourced product delivery with an infrastructure and a pipeline to market.

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