Intel Overtook Nvidia in 2023 in Terms of Revenue Generation in the Semiconductor Space

Semiconductor Fabless Market

The term ‘fabless company’ briefly explains the semiconductor company that designs and markets semiconductors but outsources the manufacturing to a location where labor cost is comparatively low while keeping the intellectual property to themselves. Famous companies include Apple, Nvidia, and Qualcomm. This business model allows fable companies to benefit from reduced labor costs and economies of scale, which helps them focus on the development and monetization of their IP portfolios.

• The Taiwan semiconductor manufacturing company TSM is the largest producer of semiconductors for other firms controlling about 30% of the global market with almost $76 Billion in revenues in
• 2022.Qualcomm, a United States-based fabless semiconductor manufacturer, registered revenue of $45 billion in the year 2022.

The semiconductor fabless market is experiencing rapid growth as companies can focus on the design and innovation of chips without investing substantially into operating, maintaining and upgrading manufacturing facilities. The growth and popularity of fabless companies highlights a number of benefits creating lucrative opportunity for the global semiconductor fabless market.