What's driving the R&D Outsourcing Boom

Semiconductor design remains a growth area for R & D outsourcing, because the industry is feature-driven and requires more ideas that will focus on core differentiation in products. With device and end system complexities increasing by the day, it is difficult for a single organization to be able to build all the necessary skills in-house. Outsourcing also enables the company to reduce the total cost of product development by utilizing the labor from certain geographical areas where labor is cost-effective. The semiconductor industry has undergone successive phases of outsourcing, in all the areas including assembly, fabrication, and design.