Published On: April 12, 2025

4o What Is Total Cost of Ownership (TCO)? In the semiconductor industry, the cost of a tool, IP block, or software license is rarely limited to what appears on the purchase order. That figure is only the beginning of the financial story. Total Cost of Ownership, or TCO, is a structured approach that enables companies to assess the full economic impact of acquiring, operating, and maintaining a product or service across its entire working life. It encompasses the following: Initial Purchase Cost: The upfront investment required to acquire the asset. This is often the most visible, yet frequently the smallest portion of the overall cost Operational Costs: This includes recurring expenditures such as power, cleanroom real estate, workforce, license renewals, and consumables. These are day-to-day costs that […]