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Foundry Model
The foundry model is a microelectronics engineering and manufacturing business model consisting of a semiconductor fabrication plant, or foundry, and an integrated circuit design operation, each belonging to separate companies or subsidiaries. Integrated device manufacturers (IDMs) design and manufacture integrated circuits. Many companies, known as fabless semiconductor companies, only design devices; merchant or pure play foundries only manufacture devices for other companies, without designing them. Examples of IDMs are Intel, Samsung, and Texas Instruments, examples of fabless companies are AMD, Nvidia, and Qualcomm, and examples of pure play foundries are GlobalFoundries, TSMC, and UMC. Integrated circuit production facilities are expensive to build and maintain. Unless they can be kept at nearly full use, they will become a drain on the finances of the company that owns them. The foundry model uses two methods to avoid these costs: fabless companies avoid costs by not o ...
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Integrated Circuits
An integrated circuit or monolithic integrated circuit (also referred to as an IC, a chip, or a microchip) is a set of electronic circuits on one small flat piece (or "chip") of semiconductor material, usually silicon. Large numbers of tiny MOSFETs (metal–oxide–semiconductor field-effect transistors) integrate into a small chip. This results in circuits that are orders of magnitude smaller, faster, and less expensive than those constructed of discrete electronic components. The IC's mass production capability, reliability, and building-block approach to integrated circuit design has ensured the rapid adoption of standardized ICs in place of designs using discrete transistors. ICs are now used in virtually all electronic equipment and have revolutionized the world of electronics. Computers, mobile phones and other home appliances are now inextricable parts of the structure of modern societies, made possible by the small size and low cost of ICs such as modern compu ...
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Finances
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of financial economics bridges the two). Finance activities take place in financial systems at various scopes, thus the field can be roughly divided into personal, corporate, and public finance. In a financial system, assets are bought, sold, or traded as financial instruments, such as currencies, loans, bonds, shares, stocks, options, futures, etc. Assets can also be banked, invested, and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities. A broad range of subfields within finance exist due to its wide scope. Asset, money, risk and investment management aim to maximize value and minimize volatility. Financial analysis is viability, stability, and profitabilit ...
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Test Method
A test method is a method for a test in science or engineering, such as a physical test, chemical test, or statistical test. It is a definitive procedure that produces a test result. In order to ensure accurate and relevant test results, a test method should be "explicit, unambiguous, and experimentally feasible.", as well as effective and reproducible. A test can be considered an observation or experiment that determines one or more characteristics of a given sample, product, process, or service. The purpose of testing involves a prior determination of expected observation and a comparison of that expectation to what one actually observes. The results of testing can be qualitative (yes/no), quantitative (a measured value), or categorical and can be derived from personal observation or the output of a precision measuring instrument. Usually the test result is the dependent variable, the measured response based on the particular conditions of the test or the level of the indep ...
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Fabless Semiconductor Companies
Fabless manufacturing is the design and sale of hardware devices and semiconductor chips while outsourcing their fabrication (or ''fab'') to a specialized manufacturer called a semiconductor foundry. These foundries are typically, but not exclusively, located in the United States, China, and Taiwan. Fabless companies can benefit from lower capital costs while concentrating their research and development resources on the end market. Some fabless companies and pure play foundries (like TSMC) may offer integrated-circuit design services to third parties. History Prior to the 1980s, the semiconductor industry was vertically integrated. Semiconductor companies owned and operated their own silicon-wafer fabrication facilities and developed their own process technology for manufacturing their chips. These companies also carried out the assembly and testing of their own chips. As with most technology-intensive industries, the silicon manufacturing process presents high barriers to ...
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Semiconductor Foundry
In the microelectronics industry, a semiconductor fabrication plant (commonly called a fab; sometimes foundry) is a factory where devices such as integrated circuits are manufactured. Fabs require many expensive devices to function. Estimates put the cost of building a new fab over one billion U.S. dollars with values as high as $3–4 billion not being uncommon. TSMC invested $9.3 billion in its ''Fab15'' 300 mm wafer manufacturing facility in Taiwan. The same company estimations suggest that their future fab might cost $20 billion. A foundry model emerged in the 1990s: Foundries that produced their own designs were known as integrated device manufacturers (IDMs). Companies that farmed out manufacturing of their designs to foundries were termed fabless semiconductor companies. Those foundries, which did not create their own designs, were called pure-play semiconductor foundries. The central part of a fab is the clean room, an area where the environment is controlled ...
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Fabless Manufacturing
Fabless manufacturing is the design and sale of hardware devices and semiconductor chips while outsourcing their fabrication (or ''fab'') to a specialized manufacturer called a semiconductor foundry. These foundries are typically, but not exclusively, located in the United States, China, and Taiwan. Fabless companies can benefit from lower capital costs while concentrating their research and development resources on the end market. Some fabless companies and pure play foundries (like TSMC) may offer integrated-circuit design services to third parties. History Prior to the 1980s, the semiconductor industry was vertically integrated. Semiconductor companies owned and operated their own silicon-wafer fabrication facilities and developed their own process technology for manufacturing their chips. These companies also carried out the assembly and testing of their own chips. As with most technology-intensive industries, the silicon manufacturing process presents high barriers to ...
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Carver Mead
Carver Andress Mead (born May 1, 1934) is an American scientist and engineer. He currently holds the position of Gordon and Betty Moore Professor Emeritus of Engineering and Applied Science at the California Institute of Technology (Caltech), having taught there for over 40 years. He taught Deborah Chung, the first female engineering graduate of Caltech. He advised the first female electrical engineering student at Caltech, Louise Kirkbride. His contributions as a teacher include the classic textbook ''Introduction to VLSI Systems'' (1980), which he coauthored with Lynn Conway. A pioneer of modern microelectronics, he has made contributions to the development and design of semiconductors, digital chips, and silicon compilers, technologies which form the foundations of modern very-large-scale integration chip design. In the 1980s, he focused on electronic modelling of human neurology and biology, creating " neuromorphic electronic systems." Mead has been involved in the foundi ...
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Industrial Technology Research Institute
The Industrial Technology Research Institute (ITRI; ) is a technology research and development institution in Taiwan. Founded in 1973, ITRI has contributed to moving Taiwan's industries from labor-intensive to innovation-driven. ITRI is headquartered in Hsinchu City, Taiwan, with branch offices in the U.S., Europe, and Japan. ITRI's open lab and incubator have fostered emerging industries and startups including UMC and TSMC. In 1982, the new Materials Research Laboratories (MRL) was established under ITRI and Otto C.C. Lin was appointed as its Founding Director. Recently, ITRI launched the 2030 Technology Strategy & Roadmap, which focuses on Intelligentization Enabling Technologies in the Smart Living, Quality Health, and Sustainable Environment spaces. History Since its founding in 1973 ITRI has been a significant driver of Taiwan's economy, especially its tech industry. In 2019 ITRI banned all smartphones and computers made by China's Huawei from their intern ...
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Corporate Spin-off
A corporate spin-off, also known as a spin-out, or starburst or hive-off, is a type of corporate action where a company "splits off" a section as a separate business or creates a second incarnation, even if the first is still active. Characteristics Spin-offs are divisions of companies or organizations that then become independent businesses with assets, employees, intellectual property, technology, or existing products that are taken from the parent company. Shareholders of the parent company receive equivalent shares in the new company in order to compensate for the loss of equity in the original stocks. However, shareholders may then buy and sell stocks from either company independently; this potentially makes investment in the companies more attractive, as potential share purchasers can invest narrowly in the portion of the business they think will have the most growth. In contrast, divestment can also sever one business from another, but the assets are sold off rather ...
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Taiwan Semiconductor Manufacturing Corporation
Taiwan Semiconductor Manufacturing Company Limited (TSMC; also called Taiwan Semiconductor) is a Taiwanese multinational semiconductor contract manufacturing and design company. It is the world's most valuable semiconductor company, the world's largest dedicated independent ( pure-play) semiconductor foundry, and one of Taiwan's largest companies, with its headquarters and main operations located in the Hsinchu Science Park in Hsinchu. It is majority owned by foreign investors. Founded in Taiwan in 1987 by Morris Chang, TSMC was the world's first dedicated semiconductor foundry and has long been the leading company in its field. When Chang retired in 2018, after 31 years of TSMC leadership, Mark Liu became chairman and C. C. Wei became Chief Executive. It has been listed on the Taiwan Stock Exchange (TWSE: 2330) since 1993; in 1997 it became the first Taiwanese company to be listed on the New York Stock Exchange (NYSE: TSM). Since 1994, TSMC has had a compound annual growth rat ...
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Microcircuit
An integrated circuit or monolithic integrated circuit (also referred to as an IC, a chip, or a microchip) is a set of electronic circuits on one small flat piece (or "chip") of semiconductor material, usually silicon. Large numbers of tiny MOSFETs (metal–oxide–semiconductor field-effect transistors) integrate into a small chip. This results in circuits that are orders of magnitude smaller, faster, and less expensive than those constructed of discrete electronic components. The IC's mass production capability, reliability, and building-block approach to integrated circuit design has ensured the rapid adoption of standardized ICs in place of designs using discrete transistors. ICs are now used in virtually all electronic equipment and have revolutionized the world of electronics. Computers, mobile phones and other home appliances are now inextricable parts of the structure of modern societies, made possible by the small size and low cost of ICs such as modern computer proce ...
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Research And Development
Research and development (R&D or R+D), known in Europe as research and technological development (RTD), is the set of innovative activities undertaken by corporations or governments in developing new services or products, and improving existing ones. Research and development constitutes the first stage of development of a potential new service or the production process. R&D activities differ from institution to institution, with two primary models of an R&D department either staffed by engineers and tasked with directly developing new products, or staffed with industrial scientists and tasked with applied research in scientific or technological fields, which may facilitate future product development. R&D differs from the vast majority of corporate activities in that it is not intended to yield immediate profit, and generally carries greater risk and an uncertain return on investment. However R&D is crucial for acquiring larger shares of the market through the marketisation o ...
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