Fabless Business Model Not Working, Say CEOs

The fabless semiconductor business model is dysfunctional, and can only be got to work again if there are some significant technical breakthroughs, according to a number of company chief executives.

“The current way of doing things is broken. Innovation is stalled, and the cost of customization is prohibitive. It will cost $50 million to develop a 65nm chip,” Ronnie Vasishta, CEO of Israeli firm eASIC, told the recent IFF2005 conference.