Archive for the ‘manufacturing processes’ tag
Intel turn to outsourcing.
Everyone knows the name Intel and they are easily one of the world’s most recognized brands, sitting alongside Coca-Cola, Microsoft and Apple. In fact, you know that Intel is so successful with the fact that Apple changed their manufacturing processes in order to include the Intel chip in their macs. This is high praise indeed for any firm and shows that the power of Intel is something that can make a huge difference to any computer user. However, it is interesting to note that not even a firm like Intel is immune to the difficulties that the current credit crunch brings and the company is looking for ways to reduce their cost, to become leaner and to be more cost effective in their working.
As they can see from a whole host of companies and firms, outsourcing has become a fantastic way to reduce costs whilst obtaining a great level of skill and experience from staff well trained in the processes that the firm has to deliver. Intel may be one of the best firms operating in the market but there is always room for development and their recent decision to outsource should see them benefit in this manner too. It is the Southbridge chips that the firm has decided to outsource and the lucky recipient of this agreement is Advanced Semiconductor Engineering Inc (ASE), who is based in Taiwan. This move will enable Intel to close a number of their assembly and testing warehouses and insiders predict that the companies working revenue could rise by a figure close to 50% in the next quarter. This move indicates why outsourcing is such an attractive proposition to a great number of firms.
Of course, a firm like Intel has to be fully aware that many of their rivals and competitors are keen to learn what makes their chips tick and will attempt to copy and steal their ideas at every opportunity. This means that Intel look to take great care and have a higher level of security over their products and naturally they are mindful of the issues that may arise when using outsourcing firms. It is not that outsourcing firms are not to be trusted but any process which adds an extra layer to the process and involves more people is sadly more likely to run the risk of leaks or information escaping but Intel has made moves to keep their information and products safe from harm. Any firm based in mainland China and suspected of operating in the trade for knockoff chips and processors will not be allowed to buy chips directly from the outsourced producer. Intel are maintaining a strong control over the production and any suspected firm that wishes to buy chips from Intel will be required to purchase and interact directly with Intel. This should give the firm a greater degree of control over their product and alleviate any of the blame or concerns from the outsourced firm. This will work out for the best for all parties and indicates that outsourcing can be managed in such a way to take care of any concerns that a firm may have about security or confidentiality.
