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Sledge
10-13-03, 10:19 AM
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http://www.siliconstrategies.com/article/showArticle.jhtml?articleId=15202157

Some nice quotes courtesy of Ace's Hardware. (http://www.aceshardware.com/)

Huang raised eyebrows, however, by applying his observations to the fabless industry at large. "A small fabless company is fundamentally long-term intractable," he said. Huang argued that given the increasing resources necessary to field a chip and the diminishing markets for application-specific products, the only survivors in the fabless world would be companies that "identified a broad swath of applications that could be met with a single piece of configurable or programmable hardware. Only then can they achieve the volumes necessary to survive."

He emphasized that those ramps couldn't have happened if Nvidia hadn't worked closely with its own suppliers, with card and motherboard vendors, retailers and OEMs. But he said the strategy worked because Nvidia had relentlessly driven its brand through its immediate customers, through retailers and into the minds of end users.

In so doing, he said, the ability to work with content vendors was absolutely essential. Nvidia didn't push products, he said, content pulled it.


And what did others think of this?

Whether Huang's view represents an accurate assessment of a rapidly maturing market or, as some observers said, simply reflects the hubris of a company that has succeeded without really understanding the reasons, it did represent a challenge to the thinking of the fabless semiconductor executives.

GlowStick
10-13-03, 10:29 PM
Well im pritty sure it takes billions and billions of dollers to make a fab, and it seems you cant just build one kick ass fab, you ahve to constnatly retool it to keep up with new technologys and nvidia dose not sell enough chips to justify the cost of a fab, it seems you need tons and tons of chips per day to be profitble.

The Baron
10-13-03, 10:31 PM
CORRECTAMUNDO! Why do you think there are so few fabs?

The main ones that come to mind are:

Intel
IBM
TSMC
UMC
AMD (but they're partnering with IBM, aren't they?)

GlowStick
10-13-03, 10:43 PM
I think fabs are real cool, but arent they industry guarded secrets? eg i dobut that you will find a book or a guide on the internet of how to build your own fab heh.

PoorGuy
10-14-03, 02:26 AM
Which one had a major fire in the mid-90's that caused RAM prices to triple from a world-wide shortage?

astroguy
10-14-03, 02:32 AM
doesn't a single fab cost like 20 billion?
you'd have to be able to sell a lot of chips in order to make it justifyable
I remember that's how much the fab that was gonna be built at malaysia by amd was gonna cost...

Mariner
10-14-03, 10:39 AM
Which one had a major fire in the mid-90's that caused RAM prices to triple from a world-wide shortage?

If I remember correctly, I don't think that one of the Fabs had a fire - wasn't it something to do with an explosion in a resin factory or something? All Memory chips needed this resin/whatever was made in the factory for the packaging and it was this shortage that was the problem.

Of course, I could be remembering incorrectly! :D

euan
10-14-03, 01:17 PM
Nah that's just the big Fabs. There are loads more. Companies like Hyndai and all those Non-brand type corporations...