Global Semiconductor Industry Trend—IDM Versus Foundry Approaches [Point of View]

Although the foundry business model will not disappear, IDMs, which have the capability to design and manufacture chips, will regain dominance. New fabless companies that sell software and chips customized with configuration data will be partners in this new model based on the horizontal division of labor. However, it will take considerable time and effort before the technology becomes good enough for this new model to become entrenched. Therefore, the severe environment for IDMs will persist for some time as they endeavor in various ways to extricate themselves from their difficulties.