PCBA Tech - Misunderstandings in choosing smt chip processing plants

Since outsourcing plays an important role in electronic manufacturing, especially PCB processing, choosing a suitable smt chip processing manufacturer has become an important determinant of success. However, there are some misunderstandings in choosing PCBA electronic contract manufacturers. About debunking these misunderstandings and discovering the real facts that can help make the right choice. So here is:

Misunderstandings about choosing smt chip processing plants

Misunderstanding 1: Technical capability is the only requirement for electronic contract manufacturing partners

Although it is obvious that technical capability is an important aspect of choosing an electronic contract manufacturer, it is clearly not the only factor. The mistake most people make is ignoring many other business factors when making a choice. It is important to remember that working with manufacturers is a complex business relationship, not just a technical relationship.

Misunderstandings about choosing smt chip processing plants

smt processing plant

Myth 2: A better presentation is equivalent to an excellent foundry manufacturer

Let’s face it, the impressive presentation may be a feature of the contract manufacturer’s outstanding sales and marketing capabilities. It is very important that when you use the presentation as an indicator, you can also judge the other capabilities of the smt processing contract manufacturer, that is, its operational expertise. Before making any decision, you must also conduct a reliable reference check. Operational capacity cannot represent its true processing strength.

Misunderstandings about choosing smt chip processing plants

Myth 3: Larger companies will charge lower margins for appreciation

Again, although sometimes this may be true, it is not a universal premise. This is because although large electronic contract manufacturers may receive volume discounts on their raw material requirements, labor costs may or may not follow the same approach. Therefore, the price of a large smt processing factory may not necessarily be low, and the price of a small factory may not necessarily be high.

Misunderstandings about choosing smt chip processing plants

Myth 4: If a manufacturer has a good vertical integration model, it can provide low prices

This is also not always given. Some electronic contract manufacturers can do this, and some may not have the corresponding strength. There will be instability in the supply chain at any time, but factories that can carry out a vertical integration model may be more powerful than other companies and can also provide you with competitive prices.

Misunderstandings about choosing smt chip processing plants

Myth 5: Electronic contract manufacturers should not work for my competitors

Your worries may be totally unfounded. As long as the electronic contract manufacturer is compatible with your overall project and cooperates with your competitors, it should not affect the cooperation between the two parties. Professional contract manufacturers will certainly be fully aware of the confidential nature of the PCB manufacturing process. This is also the necessary confidentiality quality for long-term suppliers.