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Focus On The Core Competency and Outsource The Rest

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Intel has struggled in recent years to catch up to AMD in terms of chip-making. A lot of things went wrong in the company for years but one I want to talk about is not outsourcing early.

For a while, Intel’s ability to manufacturer it’s own chips was seen as advantage but that’s no longer the case. Employees has to design the chips and figure out ways to manufacture them.

Competitors such as AMD and NVidia on the other hand, use chip manufacturer’s such as TSMC and Samsung.

Chip manufacturer’s spend their time and money on improving their core competency, manufacturing.

While Intel was trying to figure out both the design and manufacturing of tightly packed 10nm chips, AMD was just designing and letting the other do the rest.

This could be the reason why AMD also spend about 7 times less on R&D than Intel but has the chips out now.

This applies to new automotive start-ups, they realize that their core competency is design, engineering and technology and then partnering with larger OEM’s and suppliers who has mastered the art of manufacturing and assembly.

It’s important to focus on your core competency and be comfortable with letting others help you with what they do best.

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