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. Path To Profitability (P2P)

    A clearly defined route to profitability as described in a business ...
  5. Google Blogger

    Google Blogger is a free publishing platform run by Google (GOOGL). ...
  6. Wordpress (CMS)

    Wordpress is widely considered easy to use and is the CMS of ...
RELATED FAQS
  1. How can companies reduce internal and external business risk?

    A company can reduce negative exposure to business risk by identifying internal risks and external risks. Internal risks ... Read Full Answer >>
  2. What are the primary activities of Michael Porter's value chain?

    The primary activities of Michael Porter's value chain are inbound logistics, operations, outbound logistics, marketing and ... Read Full Answer >>
  3. To what extent does government regulation impact the electronics sector?

    Many electronics sector companies are tightly regulated. Environmental and product quality regulations are common around ... Read Full Answer >>
  4. What are the most common ETFs that track the chemicals sector?

    As of 2015, no exchange-traded funds (ETFs) exclusively track the chemical sector, but ETFs are available that track chemical ... Read Full Answer >>
  5. What are some of the most prominent companies in the electronics sector?

    The electronics industry is part of the technology sector. This sector covers companies that are responsible for researching, ... Read Full Answer >>
  6. What is the electronics sector?

    The electronics sector produces electronic equipment for industries and consumer electronics products, such as computers, ... Read Full Answer >>
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. Economics

    Understanding Marketing

    Marketing includes all of the activities of a company associated with buying and selling a product or service.
  6. Professionals

    Understanding Operations Management

    Operations management is concerned with converting materials and labor into goods and services as efficiently as possible to maximize profits.
  7. Economics

    Understanding Product Lines

    A product line is a group of related products manufactured by the same company.
  8. Entrepreneurship

    Cold Calling Vs. Networking

    Why networking is taking over from cold calling as the best way for financial advisors to grow their client base – and where cold calling fits in.
  9. Investing

    Why 2015 Does Not Look Like Y2K

    The technology-heavy Nasdaq Composite Index hit a new record last week, as a broader rally in stocks helped nudge it past its 2000 peak.
  10. Investing

    Africa's Rapid Tech Advancement Drawing Investors

    The rapid adoption of technology, and the proliferation of startups, in Africa have created excellent investment opportunities.

You May Also Like

Hot Definitions
  1. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
  2. Unearned Revenue

    When an individual or company receives money for a service or product that has yet to be fulfilled. Unearned revenue can ...
  3. Trailing Twelve Months - TTM

    The timeframe of the past 12 months used for reporting financial figures. A company's trailing 12 months is a representation ...
  4. Subordinated Debt

    A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known ...
  5. International Financial Reporting Standards - IFRS

    A set of international accounting standards stating how particular types of transactions and other events should be reported ...
  6. Geometric Mean

    The average of a set of products, the calculation of which is commonly used to determine the performance results of an investment ...
Trading Center