The era of fabless semiconductor companies and behind-the-scenes foundries
A semiconductor company conventionally manufactures and sells semiconductor devices. However, many such companies own no fabrication plants and do not manufacture devices. These firms, focusing on product planning, development, design and marketing, are known as fabless semiconductor companies. So, who does the manufacturing? It's done by foundries—contract manufacturers of semiconductors that operate behind the scenes. Foundries produce devices under contract for fabless firms and never market products under their own brand, making them invisible to consumers. Nonetheless, they are the unsung heroes powering today's semiconductor manufacturing.
Currently, most foundries operate large fabs across East Asia, particularly in Taiwan. Because of this concentration, they have come under scrutiny amid rising geopolitical challenges involving the U.S., China and Taiwan.