In the competitive world of electronics, PCBA contract manufacturing is often the most significant expense in the product development lifecycle. For OEMs and hardware startups, the challenge is always the same: How do we lower production costs without risking the reliability of our devices?
At Sanshun Smart, with over a decade of experience and a 30,000-square-meter state-of-the-art facility, we’ve helped hundreds of clients optimize their manufacturing budgets. In this guide, we share professional strategies to trim the fat from your PCBA costs while maintaining world-class quality.
The foundation of cost reduction starts long before the first component is placed. Design for Manufacturing (DFM) is the practice of designing PCB layouts that are easy and inexpensive to produce.
Panelization: Maximize material utilization by optimizing the PCB panel layout. Proper panelization reduces waste and lowers the per-unit cost of the substrate.
Via Optimization: High-density interconnects (HDI) with blind and buried vias are expensive. If your design allows, stick to standard through-hole vias to significantly cut costs.
Standardize Components: Whenever possible, use common, off-the-shelf components. Unique or obsolete parts lead to higher procurement costs and longer lead times.
One of the hidden costs in PCBA contract manufacturing is the "logistics tax" — shipping parts between different vendors for SMT, injection molding, and final assembly.
The Sanshun Advantage: By choosing a partner with fully integrated operations, you eliminate these inefficiencies. As detailed in our About Us page, Sanshun Smart offers in-house manufacturing that includes:
SMT (Surface Mount Technology) & Wave Soldering: Automated lines for high precision.
Injection Molding: We produce the enclosures alongside the electronics.
Software & Hardware R&D: Our team helps refine your design for mass production.
“Consolidating your supply chain under one roof can reduce total lead times by 15-20% and cut logistics overhead significantly.”
Component costs typically make up 70% to 80% of the total PCBA price. To reduce this, you need a manufacturer with a strong supply chain leverage.
At Sanshun, we utilize our long-standing IC and LCD partnerships and multi-channel procurement networks to secure stable supplies at competitive prices. Instead of buying from retail distributors, we source directly from manufacturers or authorized tier-1 agents, passing those savings directly to our clients.
Based on Sanshun Smart’s Expertise in LED and Smart Displays
The Challenge: A client in the smart home appliance sector was facing high assembly costs for a customized refrigerator LED light panel due to high scrap rates and complex manual assembly.
The Sanshun Solution:
Process Integration: We moved the plastic housing production to our in-house injection molding department.
Automated Testing: We implemented automated optical inspection (AOI) and functional testing tailored for LED brightness consistency.
Result: The client saw a 12% reduction in total production cost and a 99.8% yield rate, proving that "cheaper" can mean "better" when the process is optimized.
It may seem counterintuitive, but investing in robust testing (AOI, ICT, and X-ray) actually reduces long-term costs. The cost of fixing a failed PCBA in the field is often 10x higher than catching the defect during the assembly stage.
By using a manufacturer that adheres to strict ISO quality standards, you protect your brand reputation and avoid the nightmare of product recalls.
Cost reduction in PCBA contract manufacturing is not about buying the cheapest components; it’s about choosing a partner with the scale, technology, and engineering expertise to manufacture efficiently.
Ready to optimize your next project? Sanshun Smart provides end-to-end electronic solutions—from R&D to final assembly. Contact our engineering team today for a free DFM review and a competitive quote for your next PCBA project.