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Definition: fab


(FABrication) A manufacturing plant that makes semiconductor devices, otherwise known as "chips." Many chips are created by "fabless" companies that take their designs to a fab for production, also called a "foundry." For example, Apple and NVIDIA design their own chips, but TSMC makes them (see TSMC).

As of 2024, the U.S. has roughly 12% of the fabs in the world, but it is expanding rapidly. With more than $300 billion in investment in the mid-2020s, Intel, Micron, Samsung, GlobalFoundries, Texas Instruments and TSMC are building new facilities in America in order to catch up (see Chips and Science Act). See foundry.

Be the First on Your Block
You too can be a chip maker. All it takes is $15 to $20 billion to build a state-of-the-art facility. See process technology.