What Does Fabless Mean?

The idea of ‘fabless’ manufacturing in IT involves manufacturing hardware devices in locations without specific fabrication for core technologies like semiconductors. In these situations, manufacturers will outsource the design of these smaller pieces to other companies that may have a lower cost of labor or other accommodations.

Techopedia Explains Fabless

Although the idea behind fabless hardware production is relatively simple, this term is now generating a lot of debate about the best strategies for comprehensive hardware manufacturing. Some of the traditional strengths of a fabless strategy include making processes more cost effective. However, as experts are now pointing out, this can also come with a significant downside in terms of quality control or precision for manufacturing processes.