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Fabless companies are those that do not have their own manufacturing facilities, but have their production carried out by other factories. Fab-less stands for factory-less.

The fabless business model is predominantly used in chip manufacturing and has cost advantages in that fabless companies can concentrate on developing and marketing the chips rather than manufacturing them. They save the high investment for costly manufacturing equipment and for the specialized personnel and have the manufacturing companies produce only when needed.

Fabless companies are organized in the Fabless Semiconducter Association (FSA) and the Global Semiconductor Alliance (GSA). The Fabless Semiconducter Association describes the business model as outsourcing the manufacture of silicon wafers.

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Englisch: fabless
Updated at: 29.03.2009
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