Research on microelectronics outsourcing

Microelectronics is a global industry. The economic share of outsourcing and offshoring in subfields of microelectronics such as design and manufacturing is significant, and has been projected to increase in the near future. As a result, the financial aspects of offshoring in microelectronics have been extensively examined by economic analysts. Offshoring in microelectronics has also resulted in a technological impact on the design and manufacturing fields. Focusing on core-competencies is imperative for companies to survive and remain profitable. However, an in-depth study of offshoring in microelectronics and its technological impact on the microelectronics industry is lacking. As a result, the significance of technological influences on the offshoring of the microelectronics industry is still not well understood. Extant studies have largely focused on turnkey services or information technology. While the existent studies provide a good overview of common aspects, the specific needs of microelectronics industry are not well researched, particularly for the design sector, as the latter results in a tangible product vs. the former as an application. Also, some of their conclusions may not be readily generalized. It is a fact that outsourcing and offshoring have been instrumental for companies to remain competitive and they will continue to serve as a general business practice. This review describes the state of current research in outsourcing and offshoring practices in microelectronics, underscores a need for in-depth research in the field, and provides directions for potential future research.