What it is
An Integrated Device Manufacturer (IDM) is a semiconductor company that handles every stage of the chip production process internally. Unlike fabless companies, IDMs own and operate their own fabrication facilities (fabs), allowing them to design, manufacture, and often package their chips in-house. This vertical integration provides greater control over the manufacturing process, quality, and supply chain. Historically, most major semiconductor companies operated as IDMs, but the fabless model has grown in prominence.
Prominent IDMs include Intel and Samsung, which both design and manufacture a significant portion of their chips, though some IDMs also utilize external foundries for certain products. The IDM model requires massive capital expenditures (capex) to build and upgrade fabs, making it a high-cost, high-control strategy. Their investments in process nodes and new fabs are key indicators of future supply and technological advancement. IDMs are often at the forefront of developing new process technologies.
Why it matters
IDMs are crucial for driving advanced process technology and ensuring domestic chip production, impacting global supply chains and national security interests. Their capex cycles influence the entire industry.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice