Tuesday, March 6, 2012

Infineon Wireless IC Division
© 2012 INSEAD Case Study
Also available: Teaching Note

The case describes the outsourcing of manufacturing services to a contract manufacturer and the subsequent focus on design of a MNC in the semiconductor industry. Challenges of execution in the outsourcing of such projects are discussed, and the need for close integration of design and manufacturing is explored.

Pedagogical Objectives: The intent of this case is to investigate the efficiency and potential of contract manufacturing as a strategic option for a firm that is oriented towards product design. The case provides a rich framework to ask questions pertaining to sustainable competitive advantage in design if manufacturing is outsourced, and looks at effective ways of managing the design-contract manufacturing interface.