Semifabs

A semifab, also known as a "fab-lite" or "asset-light" semiconductor fabrication facility, represents a business model in the semiconductor industry that differs from traditional, fully integrated foundries. Semifabs typically focus on specific stages of the semiconductor manufacturing process, rather than handling the entire workflow from wafer production to final testing. This specialization allows them to operate with lower capital expenditures compared to full-scale fabs.

Common areas of focus for semifabs include wafer bumping, wafer sort, assembly, and final test. They may also specialize in advanced packaging technologies, which are becoming increasingly crucial for enhancing chip performance and functionality. By concentrating on these particular segments, semifabs can achieve economies of scale and expertise within their chosen niche.

The rise of the semifab model is partly driven by the escalating costs and complexity of building and maintaining state-of-the-art semiconductor fabrication plants. These full-scale facilities, often referred to as "fabs," require billions of dollars in investment and cutting-edge technology. Semifabs offer a more accessible entry point for companies that may not have the resources for a full fab, or for established companies looking to outsource specific manufacturing steps. This flexible approach allows chip designers and manufacturers to tailor their production strategies to their specific needs and budgets, contributing to a more diverse and dynamic semiconductor ecosystem.