If the competition is too tough, you may need to think about starting the business in a different area or even start a completely different business instead.
This company buys their hardware from Outsource Provider 1. You might even find something that points you in a completely different direction. These too, although ignored in the market study, represent a potential demand for Product Category One devices retrofitted into many of those microprocessors.
How tough is the competition in the market you are considering? But, a person who owns an instrumentation engineers business in a location that is not competitive to you may be willing to share their entrepreneurial wisdom with you, given that you don't compete with them in their area.
In million bit microprocessors were delivered, not counting those that were used in computers and work stations. Normal memory capacity. Do separate add-on components need to be designed and manufactured? The variety of offered platforms and configurations of such devices lead to the market fragmentation where no incumbent company holds a major market share.
Reports of component shortages among chip makers have been in the business news.