Fabless manufacturing
Okay kiddo, let's talk about fabless manufacturing. Do you know what "manufacturing" means? It's when people make things in factories, like toys or cars.
Now, some companies make their own stuff in their own factories. But some companies, called "fabless" companies, don't have their own factories. Instead, they ask other companies to make things for them.
It's like when you want a cake for your birthday, but your mom doesn't know how to bake. So, she asks the bakery near your house to make a cake for you. The bakery makes the cake, and your mom pays for it.
Similarly, a fabless company designs something they want to sell, like a computer chip. But they don't have their own factory to make it. So, they go to another company, called a "foundry," and ask them to make the chip for them.
The foundry already has machines and workers who can make computer chips. They just need the design from the fabless company. Once they have the design, they make the chip and send it back to the fabless company. Then, the fabless company can sell the chips to other companies who want to use them in their products.
So, fabless manufacturing is when a company designs something but doesn't make it themselves. They ask another company to make it for them. This way, they can focus on designing and selling things without worrying about making them.
Now, some companies make their own stuff in their own factories. But some companies, called "fabless" companies, don't have their own factories. Instead, they ask other companies to make things for them.
It's like when you want a cake for your birthday, but your mom doesn't know how to bake. So, she asks the bakery near your house to make a cake for you. The bakery makes the cake, and your mom pays for it.
Similarly, a fabless company designs something they want to sell, like a computer chip. But they don't have their own factory to make it. So, they go to another company, called a "foundry," and ask them to make the chip for them.
The foundry already has machines and workers who can make computer chips. They just need the design from the fabless company. Once they have the design, they make the chip and send it back to the fabless company. Then, the fabless company can sell the chips to other companies who want to use them in their products.
So, fabless manufacturing is when a company designs something but doesn't make it themselves. They ask another company to make it for them. This way, they can focus on designing and selling things without worrying about making them.