Fablessmallit

Fablessmallit is a term that refers to a business model primarily within the semiconductor industry. Companies operating under this model do not own or operate manufacturing facilities, or "fabs." Instead, they focus on the design, development, and marketing of semiconductor products. The actual fabrication of these chips is outsourced to third-party foundries, which specialize in manufacturing. This approach allows fabless companies to concentrate their resources on innovation, research and development, and customer relationships, without the immense capital investment and operational complexities associated with running a semiconductor fabrication plant.

The fabless model has become increasingly prevalent due to the escalating costs and technological challenges of semiconductor manufacturing. By leveraging specialized foundries, fabless companies can access cutting-edge manufacturing processes without bearing the direct responsibility for maintaining and upgrading these expensive facilities. This model fosters a dynamic ecosystem where design expertise is separated from manufacturing capabilities. Prominent examples of successful fabless companies include NVIDIA, Qualcomm, and AMD, which have achieved significant market positions by focusing on chip design and intellectual property.