Analog/Digital Logic Microprocessors DSP Memory
37% 21% 18% 17% 7%
Fabless Statistics
Fabless Companies Geographic distribution Geographic area of Fabless companies North America Europe Asia Israel
BackIndustry
• Very strong microelectronic academic departments from early 60’s. • many Israeli engineers emigrated, in the 60’s, 70’s and 80’s to the silicon Valley to work in semiconductor companies.
Company & location TSMC - Taiwan UMC - Taiwan Chartered semi - US American Microsystems - US Other - worldwide
Percentage 41% 24% 10% 7% 18%
Background to the Israeli Semiconductor Industry
Percentage of total revenues /Number of companies
84% / 455 7% / 55 5% / 75 4% / 30
Fabless Statistics
Geographic Distribution of Foundries serving Fabless Companies
PC
Industrial Medical Defense Industries Automotives
10%
2% 2% 1%
Fabless Statistics
Fabless Companies Primary Business by technology Technology Area Percentage
Short Background on the Semiconductor Industry
• The leading industry in the IT revolution. • Has significant influence on global economic cycles
• Relevant to almost all sectors of IT.
• Annual revenues of more then $150 billion, with average year to year growth of 17%.
The Fabless Model
• only chip design. • No foundry. • Usually more focus then Integrated Device manufactures (IDM). • need to sale less to become profit and as a result are more flexible and can address niche markets as well as main segments.
• First multinational semiconductor companies open Israeli R&D centers in the late 60’s and early 70’s (Motorola 64, IBM 72 and Intel 74).
• Israeli engineers from silicon valley return to Israel in the 80’s and 90’s. • In 1984, first multinational semiconductor company open a foundry in Israel – Intel’s fab in Jerusalem. • structure changes in the Israeli economy – restructure of the military industries, the stability program, liberalization and globalization.
Fabless Statistics
Fabless Companies Primary Business by Market Sector Market Sector/Application Wired Communication Wireless Communication PC Peripherals Consumer Percentage 31% 23% 17% 14%
The Fabless Model
Fablees History
• began becoming relevant in the 70’s.
• rapid growth in 90’s • Today, the fabless companies total annual revenues are more then $23 million which represent 15% of semiconductor annual revenues. • for the last decade fabless growth rates were higher then the semiconductor growth rates and it is expected that in 2010 fabless annual revenues will represent about 50% of the semiconductors revenues.