10K+

Fabless

UK //ˈfæbləs//US //ˈfæbləs//

Definition

A company that designs semiconductor chips but outsources their manufacturing.

In simple words: A company that designs chips but doesn't make them.

Examples

  • The fabless company revolutionized the semiconductor market with its innovative designs.
  • Many fabless firms rely on third-party manufacturers to produce their products.
  • As a fabless tech business, they focus entirely on chip design.
  • The fabless model allows for lower costs and greater flexibility.
  • Being fabless has its challenges, particularly in quality control.

Usage notes

Used mainly in the technology and semiconductor industries. Not common in everyday conversation. Appropriate in business contexts or discussions about electronics.

Grammar pattern

standalone adjective

Memory hint

Think of 'fab' as in fabulous, since fabless companies are fabulous at design!

Collocations

  • fabless company
  • fabless model
  • fabless semiconductor

Synonyms

  • design-centric
  • outsourced manufacturing
  • semiconductor design

Common mistakes

  • Confused with 'flawless' - they are completely different terms.
  • Misused in non-technical contexts - primarily a tech industry term.
  • Incorrectly assumed to mean 'having no flaws' instead of its industry-specific meaning.