What it is
Tape-out is the term used in the semiconductor industry to describe the moment a chip design is finalized and submitted to a foundry for fabrication. It signifies the end of the design phase, where engineers have completed all verification, layout, and testing of the chip's circuitry. The "tape" refers to the magnetic tape historically used to store the design data. Today, it's typically a digital file containing the mask layout, which the foundry uses to create the masks for the lithography process.
A successful tape-out is a critical milestone for any chip development project, especially for fabless companies relying on external foundries. It indicates that a new chip is ready to begin the expensive and time-consuming manufacturing process. The next step involves the foundry producing initial wafers, followed by testing to assess chip-yield. A tape-out for an advanced-packaging design or a new process-node often signals significant R&D investment and potential future product launches.
Why it matters
Tape-out signals the transition from chip design to manufacturing, indicating that new products are on the horizon. It's a key milestone for assessing a company's product pipeline and R&D progress.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice