We all know semiconductor is the next growth story. we also seeing digital transformation of everything and in all industries, whether it is IOT (Internet of Things), AI (Artificial Intelligent), ML (Machine Learning), Automotive, Medical, Defense, 5G/6G, Networking, Cloud Computation or any retail business, Digital transformation is everywhere!
Here, I have tried putting things together to understand the Semiconductor Eco System in simple pictorial view below.
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A companies which only manufactures chips design received from fabless and IDM companies. So basically Foundry companies do not design and develop chips, they only manufactures chips. Instead of producing their own products they mostly take orders from fabless companies and manufactures chips for them. Producing semiconductor chips requires billions of dollar of investments and extremely complex production technologies, so its difficult for every semiconductor companies to do it on their own. So basically, foundries becomes the production facility for all these fabless companies.
4. OSAT (Outsourced Semiconductor Assembly and Testing):
These companies are also called as Assembly or test packaging companies. Basically, it takes care of backend processes. In semiconductor industry backend processes are assembly and testing. Foundry manufactures the chips in to wafers but these chips can not exchange electric signals. Packaging are the process in which these chips are individually cut and packed to go in to devices. Now its time to check the quality of packed chips. So basically, OSAT companies are doing packaging and testing to make sure chips are working as expected and ready for end user.













