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Chips and ChangeHow Crisis Reshapes the Semiconductor Industry$
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Clair Brown and Greg Linden

Print publication date: 2009

Print ISBN-13: 9780262013468

Published to MIT Press Scholarship Online: August 2013

DOI: 10.7551/mitpress/9780262013468.001.0001

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Rising Cost of Fabrication

Rising Cost of Fabrication

(p.39) Crisis 2 Rising Cost of Fabrication
Chips and Change

Clair Brown

Greg Linden

The MIT Press

This chapter analyses the second crisis, which was the rise in fabrication costs, to affect the semiconductor industry, and the steps taken to respond to this crisis. It explores the history of semiconductor fabrication and examines how developments in chip fabrication drove the price tag to new heights. Another milestone discussed in the chapter is the development of “fabless” chips in the mid-1980s, including those of Xilinx and Chips and Technologies. The chapter explains the advantages of the fabless-foundry model in promulgating the semiconductor business, as well as the skepticism that surrounded it. As a result, one of the conclusions includes the fact that organizational innovation is crucial in bringing industries forward.

Keywords:   chip fabrication, fabless chips, Xilinx, Chips and Technologies, fabless-foundry model, organizational innovation

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