What Are "Fabless" Chip Makers?
Fabless chip makers are companies that produce semiconductors for use in various types of electronics, such as digital cameras, smartphones and the new technologically sophisticated “smart” cars. The term "fabless" means that the company does not manufacture the silicon wafers, or chips, used in its products; instead, it outsources the work to a manufacturing plant or foundry. Many of these foundries are located in Taiwan and China, where skilled labor is plentiful and cheap, which keeps production costs low and return on investment high.
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