Mark LaPedus EE Times (02/03/2010 6:26 PM EST)

SANTA CLARA, Calif. -- During a panel discussion at the DesignCon 2010 conference here, the topic revolved around the evolution of the IC outsourcing model--and its implications.

The conclusion: IC outsourcing--which involves the migration of chip design, packaging, wafer production and even operations to third parties--enables companies to cut costs and focus on what they do best.

But it also means that the value chain--and jobs--may move offshore. Asked about the implications of job losses--and the ongoing hollowing out of the U.S. semiconductor industry--one panelist gave a startling but brutally honest answer.

''Life is cruel,'' said Bob Quinn, founder, chairman and chief technology officer of 3Leaf Systems Inc. (Santa Clara, Calif.), a chip maker, during the panel. ''We have to adjust to it.''

The trend towards outsourcing more and more functions to third parties in Asia and elsewhere is simply ''something you have to deal with,'' he said during the panel, entitled ''The Last Mile: Outsourcing Production.''

''Today, you are at the mercy of your capabilities,'' he said. "The world is changing. The world is cruel.''

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