Silicon AnalyticaGlossary · Business & metrics
What is a foundry?
A foundry is a company that manufactures chips designed by other companies. Customers supply the design; the foundry produces the wafers using its own process technology and factories.
Why it matters for investors
The foundry model lets chip designers avoid the cost of building factories, which has made foundries central to the industry. Foundry revenue reflects demand from many end markets at once, from smartphones to data centers.
Investors watch foundries’ capital spending, node mix and pricing, as well as how concentrated their customer base is.
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General educational explanation. Information only, not investment advice.