Fabless manufacturing Updated 2025-07-16
In the past, most computer designers would have their own fabs.
But once designs started getting very complicated, it started to make sense to separate concerns between designers and fabs.
What this means is that design companies would primarily write register transfer level, then use electronic design automation tools to get a final manufacturable chip, and then send that to the fab.
It is in this point of time that TSMC came along, and benefied and helped establish this trend.
The term "Fabless" could in theory refer to other areas of industry besides the semiconductor industry, but it is mostly used in that context.
International Computers Limited Updated 2025-07-16
They died so completely, Googling "ICL" now has higher hits such as Imperial College London.
Video 1.
Why the UK's IBM Failed by Asianometry (2022)
Source. Main lesson perhaps: don't put national money to fight already established markets. You have to fight for what is coming up next. E.g. that is part of the reason for TSMC's success.
TSMC Updated 2026-05-27
One of the companies that has fabs, which buys machines from companies such as ASML and puts them together in so called "silicon fabs" to make the chips
As the quintessential fabless fab, there is on thing TSMC can never ever do: sell their own design! It must forever remain a fab-only company, that will never compete with its customers. This is highlighted e.g. at youtu.be/TRZqE6H-dww?t=936 from Video "How Nvidia Won Graphics Cards by Asianometry (2021)".
Video 1.
How Taiwan Created TSMC by Asianometry (2020)
Source. Some points:
  • UCM failed because it focused too much on the internal market, and was shielded from external competition, so it didn't become world leading
  • one of TSMC's great advances was the fabless business model approach.
  • they managed to do large technology transfers from the West to kickstart things off
  • one of their main victories was investing early in CMOS, before it became huge, and winning that market