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
- Chiplet Die-to-Die Interconnect IP Solution
- High speed MACsec Engine 100G/200G/400G/800G/1.6T
- Temperature/Voltage sensors
- AMBA Bus Host to eSPI Controller/Target
- AMBA Bus Host to eSPI Controller
Related Blogs
- Wafer Costs: Out of Control or Not?
- Why Verification IP Switching Costs Are a Myth
- Do You Really Want Zero Test Costs?
- USB Developer Days - Turning Specifications into Applications
Latest Blogs
- Embedded Security explained: Advanced Encryption Standard (AES)
- Cadence Demonstrates PCIe 8.0 PHY at PCI-SIG DevCon 2026
- Cadence Achieves Successful Silicon Validation of 1st IP Test Chips on Intel 18A
- From Classical CAN and CAN FD to CAN XL: Functional Safety and Security for Next-Generation In-Vehicle Communication
- Accelerating Embedded Memory Performance with 16-bit xSPI PSRAM IP