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Semiconductor (Semiconductor) industry is also called integrated circuit (IC,Integrated Circuit) industry, the main products are our common types of chips (Chip) and a variety of discrete devices (such as diodes, transistors, MosFet, IGBT, thyristors, etc.). The manufacturers who design and manufacture these chips and devices are the main body of this article, and the concepts of IDM and Foundry/Fabless are also based on the existence of these chip manufacturers.

The advantages and disadvantages of Fabless are actually the reverse of the advantages and disadvantages of the IDM model.

Advantages:

1) Low investment cost, can quickly enter, avoid the giant deep-cultivated areas for many years, unique ways to develop new markets.

2) No fab's huge depreciation and amortization of fixed assets, lower financial pressure

3) The production design is more flexible, which can quickly design chips for the emerging needs of the market, and can also provide customized chip design services.

Disadvantages:

1) There is dependence on the foundry, such as the latest IGBT power device, for the manufacturing process parameters are highly dependent, the same IGBT in the same Foundry with the same size of different production lines, product performance are different, not to mention in different sizes or different foundry production line production.

2) Profit margins are squeezed upstream and downstream. Fabless when designing chips, they have to pay patent fees for IP cores and processing fees for Foundry, so their profit levels are often involuntary.