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Nov17
Why more chipmakers outsource manufacturing
18% of overall chip marketers neither have a factory of their own nor a manufacturing unit. What all they do is outsourcing all manufacturing requirements. Market is also responding astoundingly as compared to five years ago ($18 billion) registered more than double revenue ($42 billion).

 
Why these fabless chipmakers are were gaining more grounds on market? Some possible reasons,

1. They don't require a huge upfront investment. They don't need engineers and infrastructure set up. A typical set up costs around $50 million.

2.  Outsourcing has improved. The quality has improved. Asian Chipmakers are now at par with the best practices. It's flexible.  And during downturn days you always can shrug off the contract.

Via [News.Yahoo]

   
 

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