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How OEMs Can Maintain Market and Knowledge Leadership by Leveraging IDMs

Authored on: Aug 23, 2007 by Rakesh Sethi

Technical Paper

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Today's time-to-market pressures force original equipment manufacturers (OEMs) to introduce new products and upgrade existing ones with increasing speed, in a race to protect continuously eroding profit margins. Designers increasingly utilize off-the-shelf components, such as FPGAs and connectivity glue logic, to satisfy steep time-to-market demands, delaying broader decisions about mass production. This approach often results in OEMs becoming locked into a high-priced components strategy, which harms profit margins over the long term.

This white paper explains why making certain components instead of purchasing them is almost always the better choice, and why collaboration with an integrated device manufacturer (IDM) can be a valuable part of the building process. This collaboration can help OEMs build smart and manufacturable products that are differentiated in the market place and that cost considerably less than their ready-made counterparts. The conclusion is that the discipline of a bias towards "make" for high-performance circuit solutions can be a catalyst for maximizing long-term profit margins.

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