No fab for Qualcomm but firm mulls business evolution

No fab for Qualcomm but firm mulls business evolution

LONDON – The problems acknowledged by Qualcomm Inc. in getting enough 28-nm chips out of its foundry partner Taiwan Semiconductor Manufacturing Co. Ltd. are not about to prompt the company to build or acquire its own fab, according to Steve Mollenkopf, chief operating officer of the fabless chip company. But ways of doing business are evolving and Qualcomm is big enough to shape these to its own benefit, he said.

During a conference call for analysts held to discuss the company's second fiscal quarter financial results Mollenkopf was repeatedly questioned about supply-side and demand-side issues with regard to Qualcomm's leading-edge 28-nm products. The guidance given was that problems were due to high demand rather than low yields or IC supplies restricted below previous expectations by TSMC.

Mollenkopf was directly asked whether Qualcomm now saw owning its own wafer fab for leading-edge production as strategic.

Mollenkopf answered that it is not necessary for the company to own its fab but that it is likely that the way company works with regard to leading-edge technology will evolve and could cause the company to become even closer to is fab partners.

Mollenkopf said that the fabless business model has worked out well for Qualcomm. He said that now Qualcomm was becoming a leader in VLSI technology and competing with others on technology, change was likely. "I think we'll probably evolve the way we work; probably become even closer with our fab partners versus rethink our entire business. But I think that is just an evolution of how the industry is moving." Mollenkopf added: "And being at the size we are we're happy to be able to shape it in a way that's best for us."

Mollenkopf did not indicate how this would help Qualcomm compete with companies such as Intel or provide the company with guaranteed supply volumes.


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TAG:Qualcomm fabless foundry TSMC semiconductor business model