Fabless

Part of speech: adjective

Definitions

1. Describing a business structure where the focus is on design and development while manufacturing is contracted out to other companies
2. Denoting a company model that emphasizes product design and engineering, leveraging third-party manufacturers for production
3. Characterizing a business model in which the primary emphasis is on creating and innovating products while outsourcing the actual manufacturing process to other firms

Etymology: "Fabless" is a plain compound: "fab," short for "fabrication" (the making of semiconductor chips in a factory, often called a fab), joined to the suffix "-less," meaning "without." A fabless company, then, is one that has no fabrication plant of its own. It designs chips and hands the manufacturing to outside foundries. The word is a clear example of how English builds new terms from clipped pieces. "Fab" was already in use for chip factories, and attaching "-less" to it produced a label for a business model defined by what it lacks. Its meaning rests entirely on the contrast with companies that do own their factories.