There's no tolerance for such performance in the embedded world. Any successful technology has to work when it's needed and keep running for as long as the application is required.

The fabless semiconductor model has been so successful that some IDMs are striving to outsource as much as 50% of their IC production. And like many of their fabless neighbors, IDMs are putting up technology, not just money, to secure foundry space.

Phil Franklin, vice president, treasurer, and chief financial officer, said the company's operating income for the quarter increased 90% to $17.2 million from $9 million in the prior year, while the operating margin increased 4.9 percentage points to 18% of sales.