The Semiconductor Ecosystem Explained

The last year has seen a ton written about the semiconductor industry: chip shortages, the CHIPS Act, our dependence on Taiwan and TSMC, China, etc. Semiconductor companies will sell $600 billion worth of chips this year. Companies in the semiconductor ecosystem make chips and sell them to companies and government agencies. If you were able to look inside the simple triangle representing the semiconductor industry, instead of a single company making chips, you would find an industry with hundreds of companies, all dependent on each other. Chip Intellectual Property Cores The design of a chip may be owned by a single company, or. "Fabless" Chip Companies Systems companies that previously used off-the-shelf chips now design their own chips. Integrated Device Manufacturers Integrated Device Manufacturers design, manufacture, and sell their own chips They do not make chips for other companies.