English
Commentary / Analysis: Real men have fabs, but maybe not Infineon, NXP, TI and ST.
February 2, 2007 -- In the wake of the fab-lite strategies, possibly moving to fabless strategies, of NXP, Infineon, Texas Instruments and STMicroelectronics, the pros and cons of having a fab were listed during IFS2007 in London this week organised by analysts Future Horizons.
The first argument is the cost argment. Some say that, at $3bn, fabs are too expensive. But if you look at their cost in relation to the market size, their cost is the same.
A fab cost $40m in 1970 when the industry TAM was $2.4bn; they cost $330m in 1985 when the TAM was $21.5bn; they cost $3bn in 2005 when the TAM was $245bn. That’s a 14.1 per cent CAGR over 25 years fro both the market and the fab-cost. So there’s no change in cost.
“It’s just that you have to bet the company when you build a fab, and people have lost the stomach for betting the company”, said Future Horizons CEO, Malcolm Penn
The first argument is the cost argment. Some say that, at $3bn, fabs are too expensive. But if you look at their cost in relation to the market size, their cost is the same.
A fab cost $40m in 1970 when the industry TAM was $2.4bn; they cost $330m in 1985 when the TAM was $21.5bn; they cost $3bn in 2005 when the TAM was $245bn. That’s a 14.1 per cent CAGR over 25 years fro both the market and the fab-cost. So there’s no change in cost.
“It’s just that you have to bet the company when you build a fab, and people have lost the stomach for betting the company”, said Future Horizons CEO, Malcolm Penn
|
E-mail This Article | 
|
|
Printer-Friendly Page |
Related News
- Analyst sours on Infineon, ST but touts ARM
- Analysis: Is the ST, NXP wireless JV the start of IDM break-up?
- Five Leading Semiconductor Industry Players Incorporate New Company, Quintauris, to Drive RISC-V Ecosystem Forward
- TSMC, Bosch, Infineon, and NXP Establish Joint Venture to Bring Advanced Semiconductor Manufacturing to Europe
- Leading Semiconductor Industry Players Join Forces to Accelerate RISC-V
Breaking News
- Arteris Joins Intel Foundry Accelerator Ecosystem Alliance Program to Support Advanced Semiconductor Designs
- SkyeChip Joins Intel Foundry Accelerator IP Alliance
- Siemens and Intel Foundry advance their collaboration to enable cutting-edge integrated circuits and advanced packaging solutions for 2D and 3D IC
- Cadence Expands Design IP Portfolio Optimized for Intel 18A and Intel 18A-P Technologies, Advancing AI, HPC and Mobility Applications
- Synopsys and Intel Foundry Propel Angstrom-Scale Chip Designs on Intel 18A and Intel 18A-P Technologies
Most Popular
- QuickLogic Delivers eFPGA Hard IP for Intel 18A Based Test Chip
- Siemens collaborates with TSMC to drive further innovation in semiconductor design and integration
- Aion Silicon Joins Intel Foundry Accelerator Design Services Alliance to Deliver Next-Generation Custom SoCs at Scale
- TSMC Unveils Next-Generation A14 Process at North America Technology Symposium
- BOS Semiconductors to Partner with Intel to Accelerate Automotive AI Innovation