Commentary / Analysis: Real men have fabs, but maybe not Infineon, NXP, TI and ST.
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
- Faraday Partners with Arm to Innovate AI-driven Vehicle ASICs
- JEDEC Updates JESD79-5C DDR5 SDRAM Standard: Elevating Performance and Security for Next-Gen Technologies
- Alphawave Semi: FY 2023 and 2024 YTD Trading Update and Notice of Results
- Silvaco Announces Expanded Partnership with Micron Technology
- U.S. Subsidy for TSMC Has AI Chips, Tech Leadership in Sight
Most Popular
- Rivos Raises More Than $250M Targeting Data Analytics and Generative AI Markets
- Semiconductor Capacity Is Up, But Mind the Talent Gap
- Zhuhai Chuangfeixin: OTP IP Based on 90nm CMOS Image Sensor Process Technology Successfully Mass Production
- CMC Microsystems and AIoT Canada Sign Memorandum of Understanding to support IoT and semiconductor ecosystem growth in Canada
- Microchip Technology Acquires Neuronix AI Labs