Fabless Company

AAA

DEFINITION of 'Fabless Company'

The Global Semiconductor Alliance defines fabless as follows:

Fabless (without fab) refers to the business methodology of outsourcing the manufacturing of silicon wafers, which hundreds of semiconductor companies have adopted. Fabless companies focus on the design, development and marketing of their products and form alliances with silicon wafer manufacturers, or foundries.

INVESTOPEDIA EXPLAINS 'Fabless Company'

The fabless model is an attractive and popular option for many semiconductor companies. By adopting a fabless business strategy, a company can focus time and resources on the design of innovative integrated circuits, while avoiding the high cost of building, operating, and upgrading a manufacturing facility.

RELATED TERMS
  1. Tech Street

    A term used in the financial markets and the press to refer to ...
  2. Tech Bubble

    A pronounced and unsustainable market rise attributed to increased ...
  3. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  4. Apple iOS

    Apple iOS stands for Apple iPhone Operating System. iOS is currently ...
  5. Apple iTunes

    Apple iTunes is software primarily used to play and store media ...
  6. Apple Pay

    Apple Pay is a payment system, introduced by Apple in September ...
Related Articles
  1. Insurance

    A Checklist For Successful Medical Technology Investment

    Find an investment that will give your portfolio a shot in the arm.
  2. Mutual Funds & ETFs

    Technology Sector Funds

    Evaluate past performance before investing in these types of gadget funds, as technology investors have been on a wild ride for a few years.
  3. Investing

    Clean Or Green Technology Investing

    Innovations in energy and consumption grow as companies adopt them to reduce costs.
  4. Active Trading

    The Ups And Downs Of Biotechnology

    This volatile sector can provide huges gains, but there's also lots of downside.
  5. Personal Finance

    Watch Out For These Top Internet Scams

    The Internet had make it easier than ever for scammers to trick people into giving away their money and personal information. These are the scams to avoid.
  6. Entrepreneurship

    How To Make Money With ClickBank

    If you'd like to make money with ClickBank, you're not alone. Read on to learn how to make money with this popular affiliate network.
  7. Entrepreneurship

    How To Expand Your Business Internationally

    A guide to the risks and rewards of expanding a business abroad.
  8. Investing

    Wizards Of Odd: A Trip To Tech Land

    I spent a couple of days in Silicon Valley, and here are some key lessons I learned after meeting with a number of tech CEOs and venture capitalist.
  9. Mutual Funds & ETFs

    Want to Focus on Tech? Consider this ETF

    QQQ has appreciated over 75% over the past three years. Is this trend likely to continue?
  10. Entrepreneurship

    New Tech Capitals Emerging In Various U.S. States

    While Silicon Valley has long been recognized as the home of tech giants, an increasing number of cities around the country are attracting tech startups.

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center