Reasons for outsourcing electronic designs are changing. Jim Tully (Gartner Group) writes before the 2001 downfall the shortage of engineers were the prime reasons of concern. And vendors to fulfill project requirements used to go for outsourcing services on urgent basis. The economics changed after 2001 and the writer feels may be for good. Now more than talent it’s all about cost. Vendors now are more focused on cost and the primary design activities are outsourced as part of cost cutting program.



Along with the change consumer market has started to dominate worldwide semiconductor applications. He writes, “The concept of system on chip (SoC) is certainly real and many electronic equipment products will ultimately comprise one complex chip that represents over 90 per cent of system value. How can outsourcing firms operate in this new world of the SoC?”



Most SoC applications share a number of characteristics:

Very fast time to market requirements

Relatively short product lifetime

Very high unit volume



Opportunities in chip outsourcing and more, here