Industry Growth and Success
When FSA was established in 1994, there were only three fabless companies—Cirrus Logic, Adaptec, and Xilinx—each with revenues in excess of $250 million. During the 1990s, industry pundits acknowledged the financial success of fabless companies, such as Nvidia, Broadcom, and Xilinx, and such companies as Cyrix produced competitively-priced products, benefiting consumers and driving the global market for computing devices.
The model has been further validated by the conversion of major IDMs to a completely fabless model, including (for example) Conexant Systems, Semtech, and most recently, LSI Logic. Today most major IDMs including Freescale, Infineon, Texas Instruments and Cypress Semiconductor have adopted the practice of outsourcing chip manufacturing as a significant manufacturing strategy. As of 2007, the fabless model is the preferred business model for the semiconductor industry. The same year GSA tracked 10 separate fabless companies that had each surpassed $1 billion in annual revenues.
Read more about this topic: Fabless Manufacturing
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