Silicon AnalyticaGlossary · Business & metrics
What is an IDM (integrated device manufacturer)?
An integrated device manufacturer (IDM) both designs and manufactures chips in its own factories. Some IDMs also use outside foundries for part of their production.
Why it matters for investors
Owning factories gives IDMs control over technology and supply, but ties up capital and makes profits more sensitive to how fully the factories are used.
Analog, power and memory chipmakers are often IDMs because their manufacturing processes are closely tied to product performance. Changes in an IDM’s capital spending plans can indicate how it sees future demand.
Key companies
Related terms
General educational explanation. Information only, not investment advice.