If you believe that startups in chip are able to get in only through outsourcing you may think again. It has become inevitable to outsource chip manufacturing irrespective of how long the vendor has been in the business, or how big a vendor is.

I have just completed a short survey of about 21 chip makers worldwide. Out of the 21 I interacted with on the subject, 14 outsource. Out of those 14 vendors, 8 are established large chip makers. It is not just the upfront investment in manufacturing facility (which can cost up to $3 billion to set up, and), which outsourcing saves but there are many other factors. I will be sharing some info shortly.