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
- MIL-STD-1553 Controller IP
- UFS 5.x Device IP
- UCIe 3.x Controller IP
- Ethernet 800G PCS IP
- CHI to UCIe Bridge IP
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
- CDM Dependence on Device Capacitance
- What the Cyber Resilience Act means for the future of chip design
- When Your IP Vendor Has Operated 150,000 Base Stations: Introducing Viettel Semiconductor
- Relationship between architecture and validation in system design
- The Post-Quantum Cryptography Mandate: Building Cryptographically Agile Systems for the Quantum Era