Fabless Company

Fabless Company

In the semiconductor industry, a company that specializes in the development and sale of semiconductor chips. Fabless companies do not make the chips themselves; rather, they outsource manufacture to foundry companies, which make the chips according to fabless companies' specifications. A fabless company is thus able to keep it capital expenditures to a minimum as it does not have to invest in the construction of foundries to make the semiconductor chips. Most of the time, fabless companies concentrate predominantly in research and development.
References in periodicals archive ?
About 54 percent of fabless company sales are expected to be communications-related this year, compared with about 27 percent for the personal computer.