GlobalFoundriesGlobalFoundries Inc. (GF) is a multinational semiconductor contract manufacturing and design company incorporated in the Cayman Islands and headquartered in Malta, New York. Created by the divestiture of the manufacturing arm of AMD, the company was privately owned by Mubadala Investment Company, the sovereign wealth fund of the United Arab Emirates, until an initial public offering (IPO) in October 2021. The company manufactures integrated circuits on wafers designed for markets such as mobility, automotive, computing and wired connectivity, consumer internet of things (IoT) and other industrial applications.
TSMCTaiwan 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 its country's largest company, with headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. It is majority owned by foreign investors, and the central government of Taiwan is the largest shareholder.
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.
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. XilinxXilinx, Inc. (ˈzaɪlɪŋks ) was an American technology and semiconductor company that primarily supplied programmable logic devices. The company is known for inventing the first commercially viable field-programmable gate array (FPGA) and creating the first fabless manufacturing model. Xilinx was co-founded by Ross Freeman, Bernard Vonderschmitt, and James V Barnett II in the year 1984 and the company went public on the NASDAQ in the year 1990.
Pure playA pure play company focuses solely on a particular product or activity. Investing in a pure play company can be considered as investing in a particular commodity or product of a company. Pure play firms either specialize in a specific niche, or have little to no vertical integration. For example, a coffee shop may call itself a "pure play" restaurant, and a factory that only produces goods (not designing or selling to consumers) may refer to itself as a pure play manufactory.
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 consolidationSemiconductor consolidation is the trend of semiconductor companies collaborating in order to come to a practical synergy with the goal of being able to operate in a business model that can sustain profitability. Since the rapid adoption of the modern day chip in the 1960s, most companies involved in producing semiconductors were extremely vertically integrated. Semiconductor companies owned and operated their own fabrication plants and also the processing technologies that facilitated the creation of the chips.
Semiconductor industryThe semiconductor industry is the aggregate of companies engaged in the design and fabrication of semiconductors and semiconductor devices, such as transistors and integrated circuits. It formed around 1960, once the fabrication of semiconductor devices became a viable business. The industry's annual semiconductor sales revenue has since grown to over , as of 2018.
Application-specific integrated circuitAn application-specific integrated circuit (ASIC ˈeɪsɪk) is an integrated circuit (IC) chip customized for a particular use, rather than intended for general-purpose use, such as a chip designed to run in a digital voice recorder or a high-efficiency video codec. Application-specific standard product chips are intermediate between ASICs and industry standard integrated circuits like the 7400 series or the 4000 series. ASIC chips are typically fabricated using metal–oxide–semiconductor (MOS) technology, as MOS integrated circuit chips.
