Fabless manufacturing is a business model in which a company designs and develops integrated circuits (ICs) and other electronic components, but outsources the fabrication of the ICs to a third-party foundry. The company that designs and develops the ICs is known as the fabless semiconductor company. The foundry is responsible for the actual manufacturing of the ICs, including the fabrication of the silicon wafers, the lithography, the etching, and the packaging. Fabless manufacturing allows companies to focus on the design and development of ICs, while leaving the manufacturing to a third-party foundry. This model has become increasingly popular in recent years, as it allows companies to reduce costs and increase efficiency.