As with most technology-intensive industries, the silicon manufacturing process presents high barriers to entry into the market, especially for small start-up companies.
Simultaneously, the foundry industry was established by Dr. Morris Chang with the founding of Taiwan Semiconductor Manufacturing Corporation (TSMC).
The co-founders of the first fabless semiconductor company, LSI Computer Systems, Inc. (LSI/CSI) LSI/CSI, worked together at General Instrument Microelectronics (GIM) in the 1960s.
In creating the fabless semiconductor industry, LSI/CSI had to do the following: CDC's Aerospace Computer 469 weighed one pound, consumed a total of 10 watts and ran at 5 MHz.
CDC ran a parallel program, developing a chipset of eight similar parts that were to operate at 2.5 MHz with the identical environmental and Class S requirements.
CDC had initial difficulties with this project, but eventually awarded another contract to LSI/CSI to manage the processing, inspection, visuals, assembly, and testing of the ICs.
Another successful space program completed by LSI/CSI was the upgrade to class S of a Standard Brushless DC Motor Commutator/Controller Chip, LS7262, which was implemented in satellites.