Trends in outsourcing chip manufacturing (part 2)

The chart above lists the factors that are driving outsourcing in communication chips industry. Out of the 14 that outsource, 7 of them ranked 'Focus' as the main factor. One would have thought that cost saving is the main factor. The sample size is small (21 responses) no doubt. But then the communications chip industry is not that large. cost saving justifies outsourcing as management can see quick results in their account statements. But to really make a strategic difference, chip vendors want to outsource mainly in order to concentrate on areas where they feel they are adding value.