25/10/2025
When it comes to choosing suppliers, different companies often start from very different positions. Let’s take a moment to look at how businesses approach this, depending on their size and structure.
1. Large, Established Enterprises
These companies usually produce their most technically demanding core components in-house, while outsourcing everything else. Their procurement is typically divided into categories like electronic components, mechanical parts, and complete assemblies. Often, even the final product assembly is handled externally. Core electronic components are sourced directly, while other parts may be procured by the assembly partner. This setup allows the company to stay focused on its most competitive areas and remain flexible.
They tend to have strong hardware and software teams. When it comes to PCBs, suppliers are expected to handle bare board manufacturing and component assembly. Design capabilities are not required from the PCB supplier. What matters most is manufacturing quality and cost.
2. Industry-Specific SMEs
These are small to medium-sized enterprises that have carved out a niche in a particular industry. They may not be large in scale, but they maintain stable and ongoing business. Their hardware and software teams are lean, and project updates are less frequent. Development may be done in-house or outsourced, but internal engineers are still responsible for planning, oversight, and final acceptance.
If they follow a similar model to large enterprises—developing core functions in-house and outsourcing non-core tasks—then the suppliers they work with should also be smaller and more aligned in scale. This mutual fit ensures better support and smoother collaboration.
If they choose to outsource development, partnering with a capable Design House is ideal. For example, I’ve visited companies in the fire safety industry that often collaborate with Design Houses familiar with their field. This makes their business model more flexible and allows them to adapt or expand based on market conditions.
As for manufacturing, working directly with bare PCB manufacturers may not be suitable. PCB fabrication is capital-intensive, highly automated, energy-consuming, and subject to strict environmental regulations. It’s typically handled by large-scale companies. In this case, it’s better to work with PCBA providers who source bare boards from those manufacturers. Their long-term relationships often secure better support and pricing.
3. Startups
Startups must first solve the problem of survival—how to validate the founder’s idea with minimal cost and prove market demand. This is the critical “0 to 1” phase, known as MVP (Minimum Viable Product) validation. Whether backed by strong investment or bootstrapped by partners, MVP validation is the first shot fired on the path to growth.
Among peers, we often hear stories of startups struggling to secure funding, while still needing to pay monthly salaries. Sales may be slow despite strong product capabilities or a skilled sales team, simply due to unfavorable market conditions. Timing and luck play a role. If the market improves even slightly, the business may turn a corner.
So for startups, if the technical requirements can be met by existing market solutions, it’s better to collaborate with a Design House than to build an engineering team from scratch. Once MVP validation is complete, you can scale your team as needed—but avoid expanding blindly. This discussion is specific to electronic products. Component-level businesses are outside this scope.
So how can SMEs or startups find the right Design House? This discussion focuses on global companies outside of China. Within China, resources are abundant and most business owners know how to compare options. But for entrepreneurs outside China, finding the right partner to bring your product to life can feel like searching the stars.
Here are a few suggestions:
Start with local resources.
Leverage your existing network—referrals from friends, well-known industry contacts, and local partners. Face-to-face communication helps build trust, ensures better understanding of local regulations, and reduces the risk of financial disputes.
Look globally—but know what you’re looking for. First, distinguish between design and manufacturing.
There are many talented PCB designers around the world—in Europe, the Middle East, South Asia, and China. I’ve interacted with professionals from all these regions. You can find them through various channels: Google searches, Fiverr, LinkedIn, and Facebook groups (especially those with Chinese). Globally, many designers know Fiverr and use it to offer services or browse PCB-related groups on Facebook. However, only Chinese companies tend to treat social media as a formal marketing channel. Even so, the number of Chinese companies targeting overseas markets is still small compared to the domestic PCB industry. But for you, these resources are already quite substantial.
You can engage with multiple providers, learn from their feedback, and gradually narrow down your options to find the right partner.
If your product involves complex functions like operating systems or HMI, prioritize teams with software development capabilities. Don’t start with hardware designers. This distinction is crucial.
On the manufacturing side Many freelance engineers cannot provide prototyping services, which means your product cannot be functionally validated. And when it comes to prototyping, you may find it hard to avoid China.
As mentioned earlier, PCB manufacturing is resource-intensive. Without stable electricity, a sudden power outage during production can cause damage and waste. Even restarting machines consumes significant energy. That’s why PCB manufacturing tends to cluster in regions with strong infrastructure. Without national or regional support, the industry cannot thrive.
So naturally, you might ask: If I choose Chinese designers and Chinese PCB or PCBA manufacturers—and they can communicate effectively—is that the optimal solution?
It’s not the only solution, but it’s a valid one. China’s competitive market has already filtered out top-tier engineers. They’ve worked on countless projects and solved many problems. What’s mainstream in China may still be cutting-edge elsewhere. This is the result of market evolution, not individual brilliance.
Of course, I believe engineers around the world who thrive in this market must have exceptional skills.
Today we’ve shared some thoughts—not necessarily definitive, but offered for your reference.