Global Semiconductor Industry Trend-IDM Versus Foundry Approaches

Global semiconductor industry trend with respect to IDM versus foundry approaches and the future direction of the semiconductor industry is discussed. The capability to design and manufacture semiconductor devices are called as integrated device manufacturers (IDM). A semiconductor foundry is a business that fabricates the designs of other companies such as fabless semiconductor companies, which specialize in the design and outsource the fabrication of the devices to a foundry. 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. Power devices require special process technology for device manufacturing because they have special requirements such as high voltage endurance or lower ON resistance. Therefore, the severe environment for IDMs will persist for some time as they endeavor in various ways to extricate themselves from their difficulties.