A fabless semiconductor company focuses its resources to the design, sale and support of integrated circuits (ICs) while outsourcing the fabrication to specialized manufacturers called foundries.
The business model was initially developed in the 1980s with the assistance of private-equity funding, and allowed smaller companies to establish IC design companies and focus on innovative chip solutions while avoiding the high barrier to entry of silicon fabrication. Foundries were established to provide a non-competitive manufacturing partner and design companies began manufacturing ICs without owning a fabrication plant. Ultimately, the separate focus on end-market circuit innovation and fabrication specialization has driven efficiencies to benefit consumers and drive global competition.
Today, being a fabless semiconductor company is a preferred business model for semiconductor companies. Peraso has been outsourcing its manufacturing to leading global foundries located in Europe and Asia since its inception in 2009.