Chapter 2 - Fabless Semiconductor Manufacturing

Abstract

This chapter explains that as the fabless business model becomes the preferred model for semiconductor product companies, the foundries are not only keeping pace with the manufacturing capacity, but also are starting to lead in adopting the next process technology node at par with their integrated device manufacturer (IDM) competitors. Foundry revenue growth has consistently outpaced the growth of the semiconductor industry and is a good measure of the success of the fabless business model. Back-end manufacturing services can range from packaging characterization, substrate design, wafer bumping, wafer sort to assembly and final test, and may also include flip chip bumping services. Very few IDMs perform 100% of the packaging themselves, as the number of packaging types in the industry numbers in the multihundreds and most IDMs are unwilling to invest in all the necessary equipment. The foundries and back-end manufacturers are dependent on their semiconductor equipment suppliers for setting up their manufacturing lines.