“Captain Outsource” Hired to Lead GM
A headline earlier this month from NBC Los Angeles read “Can’t We Build Cars the Way We Make Chips?” The premise of the article was that all we needed to fix the auto industry, was to hire a few auto designers, send their drawings overseas, and this would result in a healthy American auto industry.
After all, this is now how much of the U.S. chip industry works. However much of the engineering and drafting is also being outsourced overseas.
Companies like AT&T, LSI Logic, Hewlett-Packard and others don’t make anything anymore. They are “fabless”, meaning they hire a third party foundry overseas to manufacture something for them, and then they put their name on it. Apple’s iPod and Macintosh (MAC) are examples. On the products box, it says “”Designed by Apple in California Assembled in China”. Apple does not have a factory in China. Apple does not make chips.
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