What a semiconductor is
A semiconductor is a material whose electrical properties can be controlled.
Modern integrated circuits use semiconductor materials to create enormous numbers of transistors on a single chip.
Those chips can perform tasks such as:
- general-purpose computing;
- graphics processing;
- artificial intelligence;
- memory;
- wireless communication;
- power management;
- sensing.
The semiconductor value chain
It is useful to think of the industry as several specialized layers.
Chip design
Companies create processor architectures and chip designs.
NVIDIA is primarily in this category.
Other companies may design CPUs, GPUs, networking chips, memory controllers, mobile processors, AI accelerators, or specialized chips.
Foundries
Foundries operate semiconductor fabrication plants.
They manufacture chips designed by other companies.
This is one reason a company can be highly important in the semiconductor industry without owning leading-edge factories.
NVIDIA follows a fabless model and relies on manufacturing partners.
Memory
AI systems and computers also require memory.
Memory companies manufacture products such as DRAM and high-bandwidth memory that work alongside processors.
Packaging and assembly
Advanced chips increasingly depend on sophisticated packaging methods that connect processors, memory, and other components.
Packaging has become especially important for large AI accelerators.
Semiconductor equipment
Chip factories require highly specialized equipment for lithography, deposition, inspection, etching, and many other manufacturing steps.
Equipment makers therefore form another critical layer of the industry.
Electronic systems
The finished semiconductors eventually appear in servers, PCs, phones, cars, networking equipment, industrial machines, and other systems.
Where NVIDIA fits
NVIDIA is primarily a fabless chip designer and computing-platform company.
It designs processors and systems but relies on partners to manufacture many physical components.
Its role has also expanded beyond chip design.
NVIDIA now develops:
- software such as CUDA;
- complete AI systems such as DGX;
- data-center architectures such as Blackwell;
- networking technologies strengthened by its acquisition of Mellanox.
This makes NVIDIA a useful example of how boundaries inside the semiconductor industry have become less clear.
Some chip companies now sell complete computing platforms rather than isolated components.
Fabless vs. integrated manufacturers
A fabless company designs chips but outsources semiconductor fabrication.
An integrated device manufacturer, often called an IDM, both designs and manufactures at least some of its own chips.
Neither model is automatically better.
The two structures involve different capital requirements, supply-chain risks, manufacturing control, and business priorities.
Why the industry matters
Semiconductors are foundational to modern technology.
Changes in chip design or manufacturing can affect:
- AI development;
- cloud computing;
- consumer electronics;
- vehicles;
- telecommunications;
- industrial automation;
- national technology policy.
Content rule for future companies
This page is shared across all semiconductor companies.
When AMD, Intel, Broadcom, Qualcomm, TSMC, Micron, or other semiconductor companies are later added to BizTear, do not create a new industry article for each company.
Instead:
/companies/amd/ ───────┐
/companies/intel/ ─────┤
/companies/nvidia/ ────┼──► /industries/semiconductors/
/companies/tsmc/ ──────┤
/companies/broadcom/ ──┘The industry page then becomes a cross-company Hub.
Sources
- SEC company filings
- Company manufacturing disclosures
- Semiconductor industry reference sources