Introduction The semiconductor industry in general and the microelectronics sector in particular have been continuously evolving since the invention of integrated circuits ICs in the year  .
The emerging trend in the microelectronics industry is that more IDMs are outsourcing their logic products to foundries and going fabless or fab-lite.
As a result, new fabless IC companies with innovative product ideas are continuously emerging . Fast-Follower Fabless Business Model The fast followers do not invest capital on new market potential.
The transition of a foundry to a complete new product development solution provider is achieved by acquiring the necessary core competencies and product development technologies PDTs in-house   - or establishing partnership with different foundries or vendors with complementary competencies  .
The role of the microelectronics industry a result, the foundry business has surged over the last decade  -. Fabless company IC sales as a percent of worldwide IC sales during ; broken line show the projected fabless company IC sales as percent of global sales beyond ; data obtained from .
Three distinct business models have emerged in the fabless business segment . Fabless versus IDMs IC sales during showing the historical trend of fabless companies performed much better than in every year; data obtained from . Due to foundries, the IC industry which had represented the essence of advanced technology in the past has become more commoditized technology from foundries.
Figure 4 shows the percentage change in IC sales each year during the years Fabless Business Model The foundry business model provides fabless companies an easy market entry with limited capital investment. However, with the continuous scaling of MOSFETs, the transistor dimensions are rapidly approaching to their ultimate physical limit.
Due to commoditized technology, the back-end processing assembly and test has become very critical to provide high performance IC chips. As a result, a large number fabless microelectronics companies continue to emerge  -.
The emerging trends in IC industry include: Thus, the most of the front-end manufacturing in the microelectronics industry, today, is outsourced to foundries. Thus, with the shift of technology to OSAT business, this segment of the microelectronics industry is transitioning to provide miniaturized packaging solution for advanced-node SoCs.
And, nearly all IDMs have outsourced some of their logic production to dedicated foundries and became fab-lite. Mature-Market Attacker Fabless Business Model These companies wait until an application area has reached significant global volume before entering the competition.
And, therefore, the leading semiconductor assembly and test companies are developing capabilities to offer miniaturized or scaled packaging solutions of ICs to their customers. Figure 6 b shows the emerging trend in the front-end manufacturing where foundries are leading the bulk of the business.
The PDTG is an important organization in the transitioning foundry business model from the pure-play manufacturing only to turn-key new product development solution provider in the microelectronics industry.
The fabless companies create value with less capital investment as well as by establishing dominance in niche application rather than across applications.
Besides, foundries co-develop novelty technologies with fabless customers; e. Technological differentiation will continue to drive the two-tier market structure: And, assuming the same continued Figure 3.
In the longer term, the foundry business has evolved over the last two decades. Flash, Static Random Access Memory, etc. Integrated customer support team, PDTG to support different emerging roles of a transitioning foundry in providing complete IC product development solution provider.
The driverless cars require gigabit-memories, a large number of sensors, entertainment systems, and so on integrated into an electronic system for mobility as well as electronic and social networking.
Throughout the s, the IC business was dominated by bipolar junction transistor BJT technology . In the early s, the OSAT companies were regarded as low-end, commoditized service business, and the competitive dynamics of the business were driven by price competition .
Some of these evolving trends in these four major business segments of the IC industry that are transitioning the industry are described in Sections 2.
In this business model, the foundries provide necessary new product development support to their customers including chip design, layout design and verifications, process customization, manufacturing, wafer test, assembly and test, and logistics for on time delivery of final chips to fabless companies as shown in Figure 2 b  -.
By the end of the s, foundries became the core of new technology clusters; e. The major PDTs include  -  : As a result, the price competition in this segment of the microelectronics industry value-chain is intensifying .
This paper discusses the evolution of these major business segments in the microelectronics industry.The microelectronics industry is the largest manufacturing employer in the United States, generating revenues in excess of one trillion dollars in The microelectronics industry has been growing faster than the national average because of the development of revolutionary new products for communication, information storage, and computing.
THE ROLE OF MICROMECHANICAL TESTING IN MICROELECTRONICS Ian McEnteggart Instron Limited Coronation Road, THE ROLE OF MICROMECHANICAL TESTING IN MICROELECTRONICS Ian McEnteggart Instron Limited Microelectronics Industry is now emulating the path taken by traditional mechanical.
The critical role of PDTG to support complete IC new product development is reported in the literature  -. The PDTG is an important organization in the transitioning foundry business model from the pure-play manufacturing only to turn-key new product development solution provider in the microelectronics industry.
The microelectronics sector continues to grow each year, with the global semiconductor industry worth more than $ billion in This growth drives demand for electrical and electronics engineers and circuit designers that can develop the connected devices, sensors, embedded systems and actuators.
Finally, the paper explores the government's role in the development of the U.S. microelectronics industry.
This report is part of the RAND Corporation paper series. WHAT IS MICROELECTRONICS?
The invention of the transistor in revolutionized the semiconductor industry as it replaced the usage of vacuum tubes in .Download