There is an article in the March 3rd, 2009 issue of the Wall Street Journal (“Intel Turns To Taiwan For Its Push Beyond PCs”) which I believe illustrates the competitive advantage of globalization. Intel has agreed to share its microprocessor technology with a Taiwan based IC contract manufacturer (TSMC) in the development of new integrated circuit products. The custom IC products will integrate the microprocessor technology from Intel with the unique circuitry specific to narrow market applications for production by a company that specializes in custom IC manufacturing. The implication is that the joint ventures customers will also gain a competitive advantage in the development of their product(s) due to the higher integration at the IC device level.
Take Away Thought: By leveraging the competitive value add from each partner ( Intel’s microprocessor technology expertise and TSMC’s manufacturing expertise ), their customers have the potential to become more competitive. This ripple effect of improved productivity gains is good for all.