Panel: Outsourcing is 'cruel' but necessary

Mark LaPedus, EE Times
(02/03/2010 6:26 PM EST)

SANTA CLARA, Calif. -- During a panel discussion at the DesignCon 2010 conference here, the topic revolved around the evolution of the IC outsourcing model--and its implications.

The conclusion: IC outsourcing--which involves the migration of chip design, packaging, wafer production and even operations to third parties--enables companies to cut costs and focus on what they do best.

But it also means that the value chain--and jobs--may move offshore. Asked about the implications of job losses--and the ongoing hollowing out of the U.S. semiconductor industry--one panelist gave a startling but brutally honest answer.

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