Moore's second lawRock's law or Moore's second law, named for Arthur Rock or Gordon Moore, says that the cost of a semiconductor chip fabrication plant doubles every four years. As of 2015, the price had already reached about 14 billion US dollars. Rock's law can be seen as the economic flip side to Moore's (first) law – that the number of transistors in a dense integrated circuit doubles every two years.
Semiconductor fabrication plantIn the microelectronics industry, a semiconductor fabrication plant (commonly called a fab; sometimes foundry) is a factory for semiconductor device fabrication. 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 3–4billionnotbeinguncommon.TSMCinvested9.3 billion in its Fab15 300 mm wafer manufacturing facility in Taiwan. The same company estimations suggest that their future fab might cost $20 billion. Fabless manufacturingFabless 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.
Foundry modelThe 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.
