Pre-Project Preparation Stages

Pre-project preparation is a flexible process depending on the specifics, size, and complexity of the project. Some stages may be skipped, merged, or run in parallel. 

Usually, pre-project preparation consists of the following steps:

• Product concept analysis 

Before beginning the development of an electronic device or software, the potential client typically conducts market research, analyzes competing solutions, and identifies strengths and weaknesses. Activities required at this step also include defining the target audience, user needs, and expectations. Usually, clients approach us with a clear vision of the product and a concept that outlines the unique features and advantages of the planned solution.

Skipping this stage is not advisable. Otherwise you may end up wasting time and money trying to develop something that is unfeasible, lacks demand, or has long been available in multiple variations on the market.

During our initial contact with the client, we clarify technical details, desired timelines, and budget. From the client’s responses, it quickly becomes apparent whether they have conducted any preliminary market research and if they have a clear understanding of how the device or software is intended to function, what the project budget will be, or what trade-offs might be required. Understanding the nature of the project and the organization is crucial for effective project planning and implementation. 

We do our best to assess the idea's value and the product’s competitiveness. For example, consider a raw idea with uncertain prospects: a client requested a tiny device that attaches to a lipstick or mascara cap. The device would function as a timer and notify the user when the cosmetics have expired. The client liked the idea but had not conducted any market research. Our team was skeptical about both the project concept and its feasibility. Consequently, the project did not move forward.

Another example is when the timeline or budget is unrealistic. Developing a large-scale project, such as a battery management system with a capacity of several megawatts, cannot be completed in just a few months with a budget of a few thousand dollars. If a client insists on unrealistic deadlines and budgets, productive dialogue is unlikely to happen.

• Nondisclosure agreement (NDA)

A typical contract for electronics or software development includes confidentiality clauses, but upon request, an NDA can be signed even before the main agreement. The company undertakes not to use or share project details (ideas, technical solutions, commercial info, etc.) obtained during negotiations.

• Schedule and budget planning 

It is essential to identify and allocate financial resources and other resources early in the process to ensure the project plan is realistic and achievable. Accurate estimation is equally important for both the client and the development team. The client needs to plan their budget and timeline, as funding sources are always limited, so they want to know the actual cost of the development and how long the work will take. Naturally, they also expect reassurance that the finished product will be delivered on schedule. 

When evaluating a project, developers allocate tasks and workload for each team member. Any mistake in these early estimates may result in staff shortages, rushed work, and eventual errors.

We usually provide a rough initial estimate to the client during the very first calls. This typically includes a range for both the number of man-hours and the potential cost, as well as an expected timeframe—though not tied to specific dates. For smaller or standard projects, this range is narrow, such as 500–550 man-hours. Larger projects or new, unfamiliar tasks come with a broader estimate, as additional time is built in for risks and uncertainties that always accompany extensive undertakings.

The first estimate is based on our experience with similar projects. Once the client agrees with this range, the project team prepares a detailed, precise calculation.

In rare cases, it is possible to estimate a software project without a formal technical specification. This can be done if there is already a detailed program description or an existing similar application to reference.

• Gathering requirements and developing Technical Specification

At this stage, it is important to identify and determine project goals, requirements, and potential risks to ensure the project is set up for success. There are several ways to organize this process. The client may choose to prepare the technical specification independently, detailing the product’s functional and non-functional requirements, any preferred components, certification needs, and other specifics. On our side, we are always ready to help refine and expand this document, offering optimal technical solutions based on the project’s requirements.

Alternatively, the client might just have a general product concept or a physical prototype. In that case, we create the technical specification from scratch, define the set of technologies and tools to be used, identify the key project milestones, finalize all details together, and send it to the client’s email. When the document is approved, we move on to development.

This approach, however, isn’t suitable for every project. For instance, when developing a medical device, engineers rely on the client to provide a detailed specification outlining all features and performance parameters.

A comprehensive technical specification significantly speeds up project initiation. Still, we understand that not every client can outline all the details from the beginning, so we are willing to start even with broad conceptual ideas. 

For example, one of our clients had been manufacturing and selling hot tubs for many years but had no expertise in electronic system design. They approached us with the idea of automating tub control but had no clear vision of how it should be implemented.

We suggested developing a controller and a mobile app to let users manage their hydromassage baths and adjust settings directly from their phones. The project took longer than if the client had come to us with a detailed technical specification, but this approach turned out to be the most effective—it simply wasn’t possible for them to prepare such documentation on their own.

For us, the project was an exciting challenge too. It allowed our team to dive deep into the details and carry out a comprehensive study. Later, when another client requested our technical assistance with a similar solution, we already had the experience to recommend the best components—an optimal microcontroller and other parts with a great balance of performance and cost. We also helped refine the design by suggesting the removal of unnecessary, expensive features that didn’t add real value.

So, what does a solid technical specification usually include?

• Functional requirements, areas of application, and how the device differs from existing solutions
• Non-functional parameters such as the power source, data transfer methods, and peripherals
• Operating conditions like temperature, humidity, and pressure
• Typical usage scenarios
• Overall architecture
• Certification standards

A full technical specification, which later becomes the foundation of the project documentation, may also contain detailed estimates for each stage in man-hours, a production schedule, risk assessments, and a clear list of deliverables.

Creating a technical specification is always a shared journey. You bring your ideas, and we help organize them, add the necessary technical depth, and turn vision into a real, structured plan.

• Preparing the commercial proposal

When a project is large or complex, we prepare a commercial proposal tailored to the client's needs. Sometimes, it’s just a simple one-page overview that highlights the key points about the development process. Other times, it’s a detailed document filled with excerpts from the technical specification, cost estimates, project timelines, information about our company, the team members who will be working with you, and examples of similar projects we’ve successfully completed. Also, responsibilities must be clearly assigned and the responsible parties determined for each stage of the project to ensure accountability and success.

• Building the team

While we’re working on the technical specification, we’re also putting together the perfect team to ensure the project progresses at an acceptable pace. This team might include one or several developers, a tester, an analyst, a project manager, and maybe some other experts—everyone with deep knowledge in their specialty. The total number of developers depends on how complex the project is. Large-scale work also requires more people. Thanks to our specialists’ experience and skills, we can promise you a high-quality outcome and smooth, efficient project delivery.

• Research

Often, clients come to us wanting a reality check—a second opinion on whether their idea will actually work. Sometimes, an idea can be very exciting but hard to judge its feasibility without digging deeper. In these situations, we step in with a pre-project study to explore the idea, assess its chances, and find the best way forward—before any actual development begins.

We also do research when a project involves updating an existing device or replicating a sample. For instance, once a client brought us a prototype of a capacitive keyboard. Our job was to build a solution that matches its performance. We started by thoroughly studying the sample, brainstorming various design options, and selecting the components that would deliver the best balance of quality and cost.

After completing our research, we prepare a detailed report that outlines one or more possible paths for the project. The client then decides which direction to take.

Some projects—especially complex or large-scale ones—require much more time for in-depth analysis. For example, it took us several weeks to fully explore the development of a battery management system (BMS) that became part of a large battery energy storage system (BESS). Although the client provided detailed project documentation, the scope of the work was massive. It took a month just to prepare, and the actual development lasted several years. The end result was a system comparable in power to an average hydroelectric plant.

Why Pre-Project Preparation Matters

Pre-project preparation is what sets a successful project apart from one that runs into problems later. Here’s why it’s so important:

• It gives everyone a clear understanding of the goals and vision. With well-defined requirements, the team can focus on what truly matters and provide corresponding technical support instead of chasing unclear details.
• A thorough technical specification helps us choose the right technologies—hardware components, frameworks, libraries, and programming tools—that will make the product both stable and powerful.
• The resulting specification becomes the foundation for quality control at every development stage.
• Clear requirements enable accurate scheduling and budgeting, minimizing the risk of exceeding estimates.
• The more thoroughly a project is planned from the start, the lower the risk of encountering serious issues or costly revisions later.
• Clear tasks and a transparent roadmap keep the team motivated and productive.

Effective project preparation involves thorough planning, risk assessment, and resource organization to ensure project success. It is, in essence, an investment in success. It minimizes risks, optimizes development, and ensures the final product truly meets the client’s expectations. Documents such as project plans, risk assessments, and deliverables are essential for electronics design projects, ensuring that all requirements and processes are clearly defined and tracked throughout the project lifecycle.

We devote great attention to this stage because careful preparation leads to better results. Whether you’re looking for custom electronics or software development, a technical consultation, or an expert review of an existing project, we’re always ready to help you bring your idea to life with confidence.

Modern temperature monitoring technologies play a key role in various fields, including the energy sector, oil and gas industry, construction, and environmental monitoring. A range of solutions can be applied depending on the specific requirements of each task: infrared and digital thermometers, thermal imaging cameras, etc. If you need consultation on this matter, please contact our team. We will offer the most optimal solution tailored to the specific needs of your enterprise.

One of the most promising temperature measuring methods is distributed temperature sensing (DTS). This technology enables high-precision and continuous temperature monitoring along the length of fiber optic cables, making it indispensable for real-time monitoring of infrastructure health and processes.

Important components of DTS systems are avalanche photodiodes (APDs). These devices provide high sensitivity and fast response to temperature changes. They can efficiently convert optical signals into electrical signals, providing accurate temperature data collected over distances of 30 kilometers or more. 

In this article, we are going to compare various avalanche photodiodes used in DTS solutions. 

What are Avalanche Photodiodes?

There are two main types of devices used for converting light into electrical signals: PIN photodiodes and avalanche photodiodes. They have different structures and operating principles.

Avalanche photodiodes (APDs) are semiconductor devices that convert light into electrical signals through the photoelectric effect. They can be considered as highly sensitive photodetectors.

These devices have greater sensitivity compared to other semiconductor photodetectors, which allows them to be used for detecting low luminosity levels (≲ 1 nW).

The main advantages of avalanche photodiodes compared to PIN photodiodes are:

• High sensitivity
• Low noise levels
• Short response time
• Wide bandwidth

The latter manifests itself as the ability to register waves ranging from 400 to 1700 nm, which exceeds the capabilities of PIN photodiodes. For comparison, silicon PIN diodes operate in the range of 400 to 1100 nm, covering the visible and near-infrared spectrum. Germanium and gallium-indium-arsenide PIN photodiodes have ranges of 800-1600 nm and 1000-1650 nm, respectively.

The reaction time of APDs is limited by the charge carrier transit time and the RC time constant. The reaction time of avalanche diodes is about several tenths of a nanosecond. In some cases, it can be reduced to less than 100 picoseconds, which is several times shorter compared to standard PIN diodes.

The higher the reaction speed, the greater the spatial resolution of the diode. In the case of thermometry systems, this allows sensors to detect local overheating that exceeds acceptable limits. Low-speed photodiodes (that have lower resolution) either register insignificant deviations over relatively long sections or do not register temperature changes at all. As a result, dangerous temperature rises or even fires may be detected too late.

These features of avalanche photodiodes are crucial for the energy sector, oil and gas industry, chemical industry, aviation, and other fields. DTS systems are used for temperature monitoring in high-voltage transformers and power lines, in oil and gas wells, during chemical processes, and for tracking temperature deformations in aircraft bodies.

Key Characteristics of Avalanche Photodiodes 

Photodetectors are installed in control and measurement equipment, fiber-optic communication line sensors, and cable television systems. They are used for monitoring systems and analyzing polarization.

When it comes to avalanche photodiodes in distributed temperature sensing systems, it is crucial for them to provide a rapid response to changes in the received optical power. The next paragraphs briefly describe the operating principle of this system and explain what parameters are most important for this type of measurement equipment.

Temperature is recorded along the optical line of the sensor, i.e., it is measured continuously rather than at discrete points. Typically, DTS systems can measure temperature with a spatial resolution of 1 meter and an accuracy of ±1°C. Measurements can be taken over distances exceeding 30 km, and some specialized systems can provide even more precise spatial resolutions. Thermal changes along the optical fiber cause local variations in the refraction index, which in turn leads to inelastic scattering of the light traveling through it.

The measurement principle is based on the Raman effect. Chandrasekhara Venkata Raman was an Indian physicist specializing in optics and acoustics. During his journey from London to India, he became interested in why the Mediterranean Sea appears blue. At that time, it was believed that water simply reflects the color of the sky. However, this explanation did not satisfy Raman. Later, he conducted experiments that showed that when light hits the molecules of a substance, most of the light is scattered without changing its wavelength. This is known as Rayleigh scattering. However, a small portion of the light is scattered with a change in wavelength, which is related to the vibrations of the substance's molecules. This phenomenon was named the Raman effect. The scientist was awarded the Nobel Prize in Physics in 1930 for this discovery. Today, the Raman effect is used for chemical analysis, studying the composition and structure of substances, as well as in DTS systems.

Due to heating or cooling, the physical dimensions of the fiber change, which causes local changes in the light transmittance characteristics. As a result of light extinction in quartz glass fiber due to dispersion, it is possible to determine the location of an external physical effect, allowing the optical fiber to be used as a linear sensor.

Optical fiber is made from doped quartz glass, which is a form of silicon dioxide (SiO2) with an amorphous solid structure. Thermal effects cause lattice vibrations within the solid body. When light falls on these thermally excited molecular vibrations, photons and the electrons of the molecules interact. This causes light dispersion in the optical fiber, also known as combinational scattering or Raman scattering. Unlike the incident light, this scattered light experiences a spectral shift equivalent to the resonance frequency of the lattice vibrations. The light scattered back from the optical fiber contains three distinct spectral components:

• Rayleigh scattering of the same wavelength as that of the laser source;
• Stokes line components from photons are shifted towards longer wavelengths (lower frequencies);
• Anti-Stokes line components, with photons shifted towards shorter wavelengths (higher frequencies) than Rayleigh scattering.

The distribution of wavelengths for anti-Stokes and Stokes Raman scattering

Temperature has a strong influence on the intensity of the so-called anti-Stokes band, while the characteristics of the so-called Stokes band are not affected by temperature. Thus, it is possible to calculate the local temperature of the optical fiber from the ratio of anti-Stokes and Stokes light.

For accurate measurements, the system requires photodiodes to operate in the range of 1440-1700 nm. 

There are two main types of avalanche photodiodes: those based on germanium and those based on gallium arsenide. 

• The first type is made from germanium. It can “see” infrared radiation well (wavelengths up to 1.7 µm) but operates with some noise. 
• The second type is made from gallium arsenide. It can detect slightly further into the infrared spectrum (up to 1.8 µm) and operates more cleanly, with less interference. 

Modern versions of gallium arsenide detectors are made multilayered, with the addition of other materials to enhance their characteristics. They typically have indium phosphide as a substrate and a second layer to create a heterostructure. Indium gallium arsenide (InGaAs) has a high absorption coefficient at the wavelengths commonly used in fiber optic communication lines. Therefore, even micron-thick layers of InGaAs are sufficient for complete absorption of the radiation.

These materials provide low latency and noise levels and can be used to create devices with a bandwidth of over 100 GHz (in the case of simple InP/InGaAs systems) or up to 400 GHz (in the case of InGaAs in a silicon-based heterostructure). Thus, the data transmission speed of such devices can exceed 10 Gbps.

Another important characteristic of distributed sensors is spatial resolution, i.e., their ability to distinguish the value of the measured quantity at closely spaced points.

Typically, a distributed sensor responds to an abrupt change in the measurand (temperature) along the fiber with some blurring of that edge in its output. The figure below illustrates the difference between the actual measured quantity (solid line) and that detected by the sensor (dashed line). The spatial resolution δz is usually defined as the distance over which the sensor output corresponds to a sharp transition from 10% to 90% of the fiber optic temperature value.

These values (10%–90%) are appropriate for determining the degree to which a transition is reproduced by the sensor.

Method for measuring spatial resolution in distributed sensors

When selecting photodiodes for DTS systems, one should also consider other parameters: market availability, bandwidth, the dependence of output signal parameters on the photodiode's own temperature, etc. However, the most important parameters of APDs are the response speed and, consequently, the spatial resolution.

Testing avalanche photodiodes

In electronics design, we often resort to testing various components or concepts. This is necessary to assess their functionality and identify potential problems at early stages, when it is difficult to tell if the chosen approach is effective. The Integra Sources engineers are ready to assist in assessing the feasibility of your concept and selecting the optimal technical solution.

The following setup was used for testing various avalanche photodiodes:

The schematic diagram of the APD testing setup. O-Scope is the digital oscilloscope; thermal chamber 1 contains replaceable boards with photodiodes under test; PL is the pulsed laser; RF is the Raman filter; sections 1, 2, 4, 5, 6, and 7 are optical fiber segments of 100 m each; section 3 is optical fiber of 8000 m in length; thermocouple 1, 2 are reference thermocouples.

Table 1 contains the list of photodiodes under test. To ensure the reliability of the results, the team tested five pairs of samples of each model.

Light pulses in the optical fiber were generated using a pulsed laser. Pulses with a wavelength of 1550 nm and a duration of 1 nanosecond were used in the testing.

Before conducting the experiment, thermal chambers 2 and 3 were turned on and maintained the specified temperatures (+45℃ and +70℃, respectively) for an extended period. The thermal chamber 1 housing the photodetector board maintained a temperature of +25℃ for 30 minutes prior to tests to establish proper operating conditions.

Due to the Raman effect, light in the optical fiber undergoes stimulated backscattering. The Raman filter separates the spectrum of the reflected light into Stokes and anti-Stokes bands, which are registered by a pair of photodiodes. The signal from the photodiodes is amplified by several stages using operational amplifiers. The output signal from the operational amplifiers goes to the oscilloscope.

During testing, the team measured the transition time of the electrical signal from 10% to 90% of the transition signal value. This time was then converted into the spatial resolution of the sensor. Temperature resolution was measured as the minimum change in fiber optic temperature that results in a change in the sensor output value. This data was then used to calculate the standard deviation of the measured temperature. We used averaging times of 10, 60, and 600 seconds for measurements.

Table 2 contains the comparison of the temperature resolutions of the APDs under test at lengths of 1 km and 8 km.

We also calculated the spatial resolution of the APDs. The results are shown in the following table.

Lastly, the team calculated the standard deviation of the measured temperature for the tested photodiodes at lengths of 8 km and 1 km for 600 and 60 seconds:

During testing, the most optimal results were shown by the APD-10-LC InGaAs photodiode. It has the best spatial resolution and good temperature resolution. Additionally, the manufacturer provides a precise bias voltage value in the datasheet for the device, which makes it unnecessary to select bias voltage manually and minimizes the risk of damaging the component.

Conclusion 

Distributed temperature sensing systems can detect overheating in a timely manner and prevent accidents, which is critical for ensuring safety in industrial facilities. Automated temperature monitoring enhances equipment efficiency and reduces maintenance costs. Accurate temperature measurements help maintain optimal production conditions, which affects the quality of the final product. Lastly, fiber-optic sensors are resistant to external factors, particularly to electromagnetic radiation, which increases the lifespan of monitoring systems.

Important components of DTS systems are avalanche photodiodes (APDs). These are highly sensitive semiconductor devices that convert light into electrical signals through the photoelectric effect. Key parameters of avalanche photodiodes used in DTS systems include a fast response to changes in received optical power and spatial resolution. The tests of various models have shown that the APD-10-LC InGaAs photodiodes perform best in DTS systems. 

The Integra Sources team has extensive experience in designing modern solutions for a wide variety of industries. We can help you develop electronics and software for consumer devices, medical equipment, agricultural machinery, industrial solutions, the oil and gas industry, logistics, and more. Contact us, and we will answer any questions.

Our team specializes in developing embedded electronics and software. After you contact Integra Sources, we study your project, develop the product, test it, and hand over the design documents to you. Your next move is to organize mass manufacturing. Companies that don’t own manufacturing facilities outsource this task to EMS providers, including those located abroad. In the first part of this post, we talked about China, Taiwan, the U.S., and Mexico as potential locations for electronics production. Now, we would like to discuss Thailand, Vietnam, Malaysia, and India.

Malaysia

Benefits

• Advanced E&E industry

The country is one of the key global players in the electrical and electronic industry, which makes it one of the best countries for electronics manufacturing. In September 2023, E&E products accounted for 43.7% of its total exports. Malaysian manufacturers produce passive components, PCBs, consumer electronics, and industrial equipment. Additionally, corporations such as Intel and AMD started operating in Malaysia in the 1970-80s, so there’s no lack of highly skilled professionals specializing in electronics. 

• Low labor costs

Factory and manufacturing average salaries in Malaysia are lower than in Thailand.

• Business-friendly environment and no export taxes

The country ranks 12^th in the World Bank’s 2020 Doing Business Report. The government has introduced many initiatives to boost Malaysia’s electronics production industry. On top of that, almost all goods have zero export duties except for the country’s main commodities: petroleum, crude oil, and palm oil. You can see the rates in the Customs Duties Order 2022.

Challenges

• Limited capacity

Like other small countries, Malaysia has a limited labor pool, which makes it challenging to launch large-scale production there.

• Import dependence

Malaysia’s electronics production is highly dependent on imports of machinery and raw materials from other countries, which may become a problem if the political situation in the region escalates.

Some of the Top EMS Providers in Vietnam:

• Asia Printed Circuit Sdn. Bhd.
• LKL Sunrise Electronics(M) Sdn Bhd.
• RONNIE ELECTRONICS
• BCM Electronics Corporation Sdn. Bhd.
• VISION
• Supreme PCB Solutions. Sdn. Bhd.
• AR Dynamic Technology Sdn. Bhd.
• Inovus Technology
• Silvtronics
• Qdos Tech

Export Regulation in Malaysia

Malaysia’s main laws governing export operations are:

• The Strategic Trade Act 2010 and the Strategic Trade (Amendment) Act 2017
• The Customs Act 1967 (CA) and the Customs (Prohibition of Exports) Order 2017 (CPEO)

The Customs (Prohibition of Exports) Order 2017 divides goods into three categories:

1. Goods prohibited for export (First Schedule).

2. Goods that require an export license (Second Schedule).

3. Goods subject to export prohibition, except in the manner provided in the Schedule and when export is allowed under the International Trade in Endangered Species Act 2008 (Third Schedule). 

These goods include turtle eggs, certain chemicals, minerals, ores, military equipment, wild animals, plants, certain foods, etc.

Additionally, the Restricted and Prohibited End-Users Order controls the export of goods to certain countries, entities, and individuals. The prohibited end-users include various individuals and enterprises in North Korea and Iran. The restricted end-users include North Korea, Iran, Congo, Ivory Coast, Lebanon, Sudan, Libya, Afghanistan, Iraq, Liberia, Rwanda, Somalia, and Eritrea.

Thailand

Benefits

• Electronics manufacturing hub

Thailand has become an important player in the regional electronics industry. The nation exports semiconductors, consumer devices, and automotive electronics. LG, Samsung, Intel, and other global electronics companies have established manufacturing there.

• Strategic location

Due to its proximity to key electronics markets in China, South Korea, India, Taiwan, and Japan, the country has become an attractive hub for electronics production. Being in the heart of the region makes it possible to distribute locally produced goods to both regional and global markets.

• Skilled workforce

Thailand’s electronics production enterprises have access to well-trained workers, particularly in electronics, due to a sound education system.

• Competitive costs

The factory and manufacturing average salaries in Thailand are lower than in China: $1,878 against $2,840. This and other factors make manufacturing here cheaper than in many other locations. As for quality, many Thai manufacturers have ISO, UL, and other certifications, so their goods meet international standards.

• Ease of doing business

According to the 2020 Doing Business report, Thailand ranks 21st in terms of business-friendliness globally, ahead of China, Japan, India, and Vietnam. This is largely due to the governmental support of the electronics industry, whose incentives encourage investments and growth in the sector. 

Challenges

• Limited capacity

Just like Taiwan, Thailand cannot compare to China in terms of production capacity. Therefore, it would most likely be difficult to set up large-scale manufacturing there.

• Import dependency

Like many other locations, Thailand’s electronics production is highly dependent on the import of components.

• Climate instability

From time to time, the country suffers from Monsoon flooding that hits all local industries. Back in 2011, one of such floods paralyzed the local manufacturers of car parts and PC hard drives.

Some of the Top EMS Providers in Thailand:

• Circuit Industries Co., Ltd.
• Apex Circuit
• Bluechips Microhouse Co., Ltd.
• Draco PCB Public Company Limited
• Fabrinet
• KCE Group
• Amallion Enterprise 
• Asteelflash
• Autech Thailand
• Kinpo Electronics

Export Regulations in Thailand

The country’s main governing legislation for international trade is the Export and Import Act B.E. 2522 (1979). The Ministry of Commerce can specify goods to be prohibited or restricted for export and import. 

Currently, there are about 50 goods that are not allowed to be exported from Thailand, but this list often changes. Goods prohibited for export include natural sand and intellectual property-infringing goods, pornographic materials, narcotics, counterfeit goods, and others.

As for high-tech items, the authorities restrict the manufacturing and export of medical instruments and radio communication equipment.

Note that the Medical Instrument Act B.E. 2551 (2008) gives a very broad definition of “medical instruments” that includes, among other things, machinery, software, accessories, and components intended for medical use. The manufacturer of such goods must obtain a license to export them and comply with the Notification of the Medical Instrument Commission Re: Rules, Procedures, and Conditions for Manufacturing Medical Instrument for Export B.E. 2552 (2009) and the Notification of the Ministry of Public Health dated June 17, 2552 (2009) Re: Rules, Procedures, and Conditions for Making a Record and Report of Manufacture, Import, and Sale of Medical Instruments.

The export and import of radio communications equipment are controlled under the Radio Communications Act B.E. 2498 (1955) and the Notification of the National Broadcasting and Telecommunications Commission Re: Export of Radio Communications Equipment dated March 15, 2011. Exporters of such equipment or their parts must obtain a license and comply with the Radio Communications Act.

Vietnam

Benefits

• Low labor costs

The cost of labor in Vietnam is almost six times lower than in China, making it a very competitive location for manufacturing labor-intensive goods. 

• Convenient geographic location

Vietnam’s electronics manufacturing industry benefits from its proximity to China, the key exporter of the necessary components. Also, its long Pacific coastline is well suited for fast international shipping. 

Challenges

• Lack of qualified workforce

Although the country is definitely considered one of the alternatives to China, Vietnam’s electronics manufacturing is still emerging. One particular problem is the shortage of skilled specialists, especially in such complex industries as electronics. The government is investing heavily in education, but the issue will not be resolved quickly. As of now, most electronics manufacturers in Vietnam provide low-value-added assembly and testing.

• Poor supply chain infrastructure

Although Vietnam is also investing in infrastructure, it remains mostly underdeveloped when compared to China. In the Connecting to Compete 2023 Report, the country ranked 43^rd, behind India, Thailand, Turkey, and other economies.

• Import dependency

Vietnam heavily relies on component suppliers from China, South Korea, and Japan.

• Low manufacturing capacity

Finding manufacturers in Vietnam capable of producing electronics in large quantities or scaling your current production is not an easy task. Overall, Vietnam is more suited for low-scale manufacturing of simple devices or even low-value-added assembly rather than producing advanced electronics. 

Some of the Top EMS Providers in Vietnam:

• Jing Gong Electronics Vietnam Co., Ltd.
• THANH LONG
• Vector Fabrication (Viet Nam) Co., Ltd.
• Fab 9
• Sunching Electronics Vietnam
• SAOKIM
• Trungnam EMS
• VEXOS
• Sao Kim Electronics
• TRUNG NAM EMS

Export Regulations in Vietnam

As per Appendix III of Decree 69/2018/ND-CP, certain goods require trading companies to obtain export permits from the government. They include certain chemicals, minerals, industrial explosives, explosive pre-substances, certain animals and plants, aquatic species, medicines, medical equipment, raw gold, goods subject to export control in accordance with international treaties to which Vietnam is a contracting party, and more.

Note that according to Circular 34/2013/TT-BCT, foreign-invested enterprises may not export most of these goods from Vietnam.

Appendix I of Decree 69/2018/ND-CP prohibits the export of the following goods:

• Weapons, ammunition, explosives, military technical equipment.
• Encrypted products used for protecting state secrets.
• White and black rhinoceros, African elephants, and certain other animals, aquatic species, and livestock.
• Certain chemicals.

India

As the cost of labor in China is growing, companies are seeking new destinations for electronics manufacturing. Many businesses see India as the next manufacturing powerhouse, with the potential to rival China in the future.

Benefits

• Huge population

India’s population accounts for 1.4 billion people, which means two things. First, India has a huge labor force to offer (over 523,000). Second, just like China, India can serve as both a location for contract manufacturing and a target market, which is an important factor to consider. 

• Cheap labor

India has one of the lowest labor cost indicators in the world ($269 in the manufacturing industry, according to salaryexplorer.com), so it’s not surprising India’s electronics production is on the rise. 

• Government policy

While previously the government discouraged foreign direct investment, now the country is open for investments under its “Make in India” campaign. Companies, including Apple, have already moved some of their production to India.

Challenges

Although India has great potential, the country still has many issues that should be taken into account.

• Low productivity and quality

India’s GDP per hour worked is almost twice as low ($8) than China’s indicator ($15). The country lacks a highly skilled workforce, which affects the quality of local goods. India’s electronics production lags in production planning, supply chain management, quality, and maintenance. Additionally, the country’s manufacturing sector lacks organization and regulation.

• Poor infrastructure

According to the World Bank’s Connecting to Compete 2023 Report, India occupies the 38^th position with an LPI score of 3.4. For comparison, China ranked 19^th with an LPI score of 3.7. 

• Import dependency

India is heavily dependent on the import of electronic components from China and South Korea. However, the government intends to fix it by investing in the semiconductor and display ecosystems. 

Some of the Top EMS Providers in India:

• Anand Electronics & Industries Ltd.
• AS&R Circuits India Pvt. Ltd.
• Circuit Systems India Ltd.
• CIPSA-TEC India Pvt. Ltd.
• Shogini Technoarts Pvt. Ltd.
• Ascent Circuits Pvt. Ltd.
• Fine-Line Circuits Ltd.
• Genus Electrotech Ltd.
• AT&S India Pvt. Ltd.
• Epitome Components Ltd.

Export Regulations in India

Schedule 2 of the Indian Trade Classification (Harmonized System) of Export and Import Items (or simply Schedule 2 of ITC (HS)) imposes a number of export restrictions. The list includes Special Chemicals, Organisms, Materials, Equipments & Technologies (SCOMET) that require an export license and compliance with certain conditions. For SCOMET items, such conditions also include compliance with Weapons of Mass Destruction and their Delivery System (Prohibition of Unlawful Activities) Act 2005. Among other things, this document lists electronics, computers, telecommunications, information security, sensors, and lasers.

The Foreign Trade Policy 2015-2020 also restricts the export of certain goods to Iraq, Daesh, North Korea, Iran, and Somalia.

Conclusion

China and Taiwan are among the best countries for electronics manufacturing. But as the political tension in the region keeps growing, businesses are looking for alternatives.

Malaysia has been a strong player for many years. Thailand is a large electronics exporter too. Vietnam can’t offer the same level of quality but may be a good choice for the labor-intensive production of relatively simple products. India, despite being an emerging electronics exporter, has huge potential due to its population and government initiatives. Analysts expect the country to replace China as the next manufacturing powerhouse.

If your project is yet to be developed, contact Integra Sources. We specialize in IoT solutions, robotics, power electronics, and FPGA design and have certain experience in building medical devices, computer vision systems, and more. On top of that, Integra Sources has long-lasting relationships with several manufacturers whom we would gladly recommend.

As an embedded electronics design company, we take someone else’s ideas, study them, and create new solutions. If you have a concept of a device or software, contact Integra Sources to turn it into a real product. However, after the product is tested, your next move is to organize mass manufacturing. In this post, we are going to take a closer look at the following locations, study their pros and cons and their export regulations, and mention some of the top local EMS providers.

China

Since China remains the world’s largest electronics powerhouse, it totally makes sense to consider it your number one option. 

Benefits

• Low production costs

China’s electronics manufacturing was initially boosted by very cheap labor. It motivated many companies to move their manufacturing to this country a few decades ago. By now, the country’s cost of labor has risen and is closer to the middle of the spectrum. Nevertheless, according to salaryexplorer.com, factory and manufacturing average salaries in China remain about two times lower than in the U.S. – $2,840 against $5,508. 

Another factor influencing the production cost in China is the country’s low power rates for enterprises – $0.09 per kilowatt-hour as of June 2023, according to GlobalPetrolPrices. Compare it to the rates in the U.S. ($0.147).

• Developed infrastructure and cheap resources

China has an extensive railway and port network, roads, and airports, and the government continues to invest in the infrastructure. Also, manufacturers in China hold the advantage of sourcing local active and passive components, rare-earth metals, acids, solvents, copper, tin, gold, and more.

• Output capacity

Factories in developed countries often have limited capacity, while Chinese manufacturers can almost always find the staff for your order and easily scale up the production.

• Big domestic market

China’s electronics manufacturing enterprises have easy access to the country’s huge market, with millions of potential buyers. So, unless you are targeting purely your local market, you should definitely take this possibility into account. 

Challenges

• Quality/reputational issues

Many people are used to seeing Chinese goods as trash that won’t last long. Although nowadays, many factories in China manufacture products of decent quality, one should still consider whether the “Made in China” label can prejudice potential buyers against the product.

• Intellectual property protection

Chinese manufacturers are notorious for copying customers’ designs. That’s why one needs to develop protection against reverse engineering. As for your custom firmware, we recommend using test firmware during production because it does not contain any business logic. Lastly, different parts of the device can be manufactured at different locations, but this will complicate the logistics.

• Complex logistics

When a product is shipped from China to Europe or North America, its landed cost is usually cheaper than that of domestic goods. But delivery may take up to several months, while delays will prove costlier. 

• Minimum orders

Large Chinese factories are interested in high-volume orders and may refuse to take small-batch orders. On the other hand, there are always small factories that will gladly cooperate. 

• Export to the U.S.

Those who want to produce electronics in China but sell them in the U.S. must take into account the Section 301 China Tariffs implemented in 2018. These tariffs apply to a huge list of products, including electronic appliances. So, if your product falls within one of the four lists of the China Section 301-Tariff Actions, you will have to pay the standard and additional import duty.

In 2024, the U.S. government increased the tariffs on many goods in the list from 25% to up to 100%. The tariffs on semiconductors will rise from 25% to 50% by 2025. The rates on lithium-ion batteries will increase from 7.5%% to 25%.The tariffs on solar cells will rise from 25% to 50%.

Note, however, that in December 2023, the United States Trade Representative (USTR) extended over 400 exclusions exempt from additional duties. These exclusions were scheduled to expire on May 31, 2024, but were further extended through June 14, 2024, while certain exclusions were extended through May 31, 2025. Also, note that doing business with certain Chinese companies may require a license if these companies are listed in the Bureau of Industry and Security’s Entity List.

The United States and China’s sanctions against each other and the growing political tension between the two countries make manufacturing electronics in China riskier than it used to be. Despite that, many U.S. companies still prefer manufacturing goods in China, as the pros outweigh the cons.

Some of the Top EMS Providers in China:

• BYD Electronics 
• NextPCB
• Agile Circuit
• PCBgogo
• Topscom
• Luxshare Precision Industry Co.
• UETPCB
• Global PCB
• PCBMay
• Suntek Electronics

Export Regulations in China

China’s Export Control Law (ECL) prohibits or restricts the export of such goods as nuclear products, military items, and dual-use products: chemicals, nuclear goods, encryption items, biological products, and missile-related goods.

Besides the ECL, exporters must comply with other export-related regulations, particularly with the Export Prohibited and Restricted Technology Catalog. This document lists items whose export is prohibited or is subject to license management. Technologies not mentioned in the Catalog are deemed as free export, but such items still require the completion of contractual registration procedures on a designated website.

Some technologies in the list are:

• Telemetry coding and encryption software or hardware
• Artificial intelligence
• Cryptography and security tech
• Advanced defense tech

The list is updated every year.

Note that in 2020, China issued the Unreliable Entity List Regulations (UEL Regulations). The document lists enterprises, organizations, and individuals prohibited from export/import operations with Chinese businesses. The UEL regime is independent of the ECL and applies separately.

As embedded electronics developers, we often order prototypes of our devices from Chinese factories, and we are quite satisfied with the quality of their work. If you choose to start your project with Integra Sources, we can also recommend a factory for mass manufacturing.

Taiwan

Benefits

• Expertise and quality

Taiwan’s electronics manufacturing industry emerged 20 years ahead of China’s and has been dominating the market in terms of the quality of local semiconductors and devices. No wonder it remains one of the top IT outsourcing countries. Such brands as Acer, Asus, and HTC come from Taiwan. It is also home to the famous TSMC. The country has a highly skilled workforce and high robot density, which results in a decent labor productivity indicator ($57 per hour worked). All this makes Taiwan a reliable location for both manufacturing and developing advanced electronics.

• Intellectual property protection

The country has strict IP laws and a long history of collaborating with foreign customers. Local manufacturers are trusted by such companies as HP, Siemens, Apple, NVIDIA, Intel, and others.

• Advanced infrastructure

As of 2023, Taiwan takes the 13^th position in the World Bank’s Connecting to Compete 2023 Report with an LPI score of 3.9. 

Challenges

• Higher production costs

Although manufacturing goods in Taiwan is cheaper than in Western countries, it is still generally more expensive than outsourcing to other Asian countries.

• Not suitable for large-scale production

Taiwan’s electronics manufacturing industry has a limited number of facilities. As a result, it is more suitable for small-scale manufacturing of advanced electronics or machinery rather than for large-scale production of simple consumer-grade products.

• Geopolitical uncertainty

With the tensions between mainland China, Taiwan, and the U.S. on the rise, it is unclear what to expect in the near future and how the conflict will change the market.

Some of the Top EMS Providers in Taiwan:

• HonHai Precision (Foxconn)
• 3CEMS Group
• Tripod
• AGP ELECTRONIC INC.
• 3AE Electronics Co., Ltd.
• ADLINK Technology, Inc.
• ZD Tech
• Pegatron
• Unimicron
• Compeq

Export Regulations in Taiwan

Under Taiwan’s Foreign Trade Act, most goods are generally allowed to be freely exported and imported. However, the export of certain strategic high-tech commodities (SHTC) is either prohibited or requires an export license. 

Taiwan currently maintains the following export control lists:

• The European Union’s Export Control List for Dual-Use Items and Technology and the Common Military List prohibit or restrict the export of nuclear technologies, information security systems, some industrial equipment, and more.
• The Sensitive Commodities List (SCL) controls exports to North Korea.
• The SCL controls exports to Iran.
• The SCL controls exports to Russia and Belarus.

If you want to rely on Taiwan’s electronics manufacturing companies, make sure to study these and other related laws here.

Any product that falls within one of these lists is considered an SHTC item. Non-listed products may still be deemed SHTCs if their end-users are suspected of developing nuclear, chemical, or biochemical weapons, missiles, or other weapons of mass destruction. If you’re not sure whether your product falls within one of these types of SHTCs, you should request the Industrial Technology Research Institute (ITRI) for an SHTC assessment by submitting a completed Strategic High-Tech Commodities Application Form.

Also, Taiwan’s authorities do not allow the export of SHTCs to entities listed in the SHTC Entity List.

The United States

Benefits

• High labor productivity and quality

When outsourcing electronics production to America, one benefits from high labor productivity ($70 per hour worked). USA electronics production features cutting-edge technologies, automation, highly-skilled professionals, and strict quality assurance, which makes the country fit for manufacturing complex electronics, especially in highly regulated industries: aerospace, aviation, healthcare, etc.

• Public perception

Goods manufactured in the U.S. are generally perceived as high-quality around the globe. Moreover, almost two-thirds of Americans prefer domestic products over foreign goods, although they are unwilling to pay more than 10% extra for them.

• Intellectual property protection

Due to strict laws and reliable IP enforcement, there’s less risk that an American contract manufacturer will steal your design without consequences. 

Challenges

• High labor costs

America has one of the highest factory and manufacturing average salaries in the world ($5,508), which makes USA electronics manufacturing very expensive. Consequently, you may find it difficult to compete against goods produced in countries with cheaper labor costs. 

• High taxes

American corporate tax rates are among the highest in the world, not to mention the complexity of the local tax system.

• Old infrastructure

In the 2021 Report Card for America’s Infrastructure published by the American Society of Civil Engineers, the country earned a “C-”. The nation needs to invest about $6 trillion by 2031 to make the necessary improvements.

• Logistics issues

If you want to sell the product not only in North America but also in Europe, the Middle East, Asia, and other regions, then you will have to add shipping costs to the final price.

Some of the Top EMS Providers in the USA: 

• Avanti Circuits
• ACT (USA) International LLC.
• TechnoTronix EMS
• Advanced Circuitry International
• Imagineering, Inc.
• PCB Power
• Sunstone Circuits
• Bay Area Circuits
• Twisted Traces
• RUSH PCB, Inc.

Export regulations in the United States

Here are the key laws regulating the export of goods from the U.S. International Traffic in Arms Regulations (ITAR) controls the export of weapons, military items, military services, and military-related data. The Export Administration Regulations (EAR) control the export of technology, technical data, as well as designs, models, instructions, manuals, formulae, and other information required for the development, production, or use of a product. The Commerce Control List (CCL) lists specific products that require an export license. The CCL is divided into 10 categories, which are further subdivided into five groups.

As you can see, the list contains a range of electronic products, including computers, sensors, and telecommunication equipment.

If an item is not on the list, it is designated as EAR99 and does not require an export license – unless it is going to an embargoed country. These are mostly low-tech consumer products.

The Bureau of Industry and Security also imposes specific license requirements for the export of certain goods to certain businesses, research institutions, organizations, and individuals. This so-called Entity List can be found in Supplement No. 4 to Part 744 of the Export Administration Regulations.

Mexico

Benefits

• Fast-growing hub

With over 730 plants manufacturing ICs, computer memory and CPU chips, audio and video devices, and other electronics, Mexico’s electronics production industry has great export potential. Local EMS providers offer services to Foxconn, Toshiba, Samsung, LG, and Intel. The country can also boast a relatively skillful workforce.

• Low labor costs

Mexico is one of the cheapest countries in terms of manufacturing workers’ average salaries. However, energy costs in Mexico are higher than in the U.S. ($0.215 vs. $0.147 per kilowatt-hour). So, the overall production may not be as affordable as one would expect. 

• Proximity to the United States

One of the greatest benefits of manufacturing electronics in Mexico is its proximity to the U.S. and Canada, two large potential markets. Shipping goods to these countries from Mexico should be easier than transporting them from East Europe or Asia. 

• Zero import rates

Mexico is a participant in the United States-Mexico-Canada Agreement (USMCA) that introduces special duties for goods imported to the U.S. from Mexico. Such goods are marked with ‘S’ in the Harmonized Tariff Schedule of the United States (see Column 1 Special). Most of these goods can cross the border for free.

Challenges

• For North America only

Unless you target North America, Mexico can offer no benefits compared to other attractive locations. The cost of shipping from Mexico to other regions isn’t much different than transporting goods from China.

• Costlier BOM

Mexico’s electronics production enterprises have to import components from China, so the bill of materials for your device may become more expensive due to shipping and tariff costs. On the other hand, fast shipping time usually leads to less stock and, therefore, less warehouse space is required, which may make the final price of the product acceptable despite higher BOM cost.

• Goods must be made in Mexico

The USMCA trade agreement and free import duties only apply to originating goods, i.e., products produced entirely in the territory of a USMCA country or whose regional content value is less than 60% (if the transaction value method is used) or less than 50% (if the net cost method is applied). So, if the product cannot be proven to originate from Mexico, regular import taxes will be applied.

Some of the Top EMS Providers in Mexico:

Many of them are international corporations with facilities in different countries.

• Kimball Electronics Mexico
• RayMing PCB & Assembly
• Lanix
• AsteelFlash Group
• K&S Advanced Systems
• Benchmark Tijuana
• SigmaTron International
• Jabil Circuit Mexico
• Circuitec Company
• Zollner Electronics

Export Regulations in Mexico

The Secretariat of Economy (SE) governs the export of conventional arms and dual‑use goods and technologies under the Wassenaar Arrangement in accordance with the Official Journal of the Federation on June 16, 2011, and subsequent amendments.

The regulation controls dual‑use software and technology, nuclear, chemical, and related technology equipment, materials, and software. Annex I of the regulation restricts the export of the following categories of dual-use items:

• Special materials and related equipment
• Processed materials
• Electronics
• Computers
• Telecommunications and information security
• Sensors and lasers
• Navigation and avionics
• Marine
• Aerospace and propulsion

The exporter must obtain a prior permit before shipping these goods to another country. However, the regulation contains exceptions for goods shipped by Mexican companies to the U.S. or Canada.

Note that Mexico bans the export of certain goods to Afghanistan, the Central African Republic, Congo, Eritrea, Iraq, Iran, Lebanon, Libya, North Korea, Somalia, Sudan, and Yemen.

Conclusion

Top IT outsourcing countries for electronics production are located in Asia. China’s electronics manufacturing industry offers relatively low production costs, developed infrastructure, and easy access to local raw resources and components. Another attractive location is Taiwan, which offers expert facilities with a skilled and experienced workforce. 

In North America, one should also consider the United States. However, although USA electronics manufacturing offers excellent quality control or reputational value, the production cost here may outweigh these benefits. Those targeting the North American market may find Mexico a much cheaper alternative located close to the U.S. and Canada.

If you need to develop your product first, our team would be glad to help you out. We are experts in designing embedded devices, power electronics, robotics, and embedded software. Contact Integra Sources to discuss your project. Make sure to read Part 2 of this post dedicated to Malaysia, Thailand, Vietnam, and India.

Preparing for Mass Production

Creating an electronic product starts with development. This task can be completed in-house or outsourced to an electronics development company with expertise in a given field. Integra Sources specializes in developing IoT devices, power electronics, FPGA-based solutions, and other embedded systems for various industries. Contact our team to learn about our experience. After that, you should make sure your product is ready for mass production. Use the following checklist. 

• Design for manufacturing and assembly

There is more than one way to make a properly functioning device. However, not all solutions are equally cost-efficient in terms of production. Simply put, the product must be designed in such a way that it is easy and cheap to produce. Professional electronics development companies design products with the manufacturing and technical capabilities of modern factories in mind, which is called ‘Design for Manufacturing and Assembly’.

• Product testing

Products under development undergo various tests at all phases of the process. The same goes for the final product. There are many types of tests designed for different devices. Read our blog post on PCB and electronics testing to learn more. Testing ensures the product meets the functional, non-functional, and certification requirements.

• Certification

Most electronic devices must be certified if you want to sell them. Certification proves that the product meets regulatory requirements and industry standards on safety, environmental protection, noise level, etc. Some certifications are mandatory, while others are voluntary. Learn more in our post on electronics certification in the U.S. and EU. Different countries impose different requirements on electronic devices, depending on their type and field of application. It’s important to obtain all the required certifications before launching mass production because altering the design will require changing the manufacturing process, which will lead to extra expenses. 

• PCB design documents

These include the bill of materials (BoM) as well as the PCB schematic and layout. Our team uses Altium Designer and other CAD software for PCB design and layout. The projects created in such software can then be exported as Gerber files used for manufacturing. They describe copper layers, the coordinates of components, vias, and tracks on the board, and other details that factories need. 

• Test software

Along with hardware, Integra Sources also develops embedded software for our devices. However, we strongly advise against handing it over to factories for the sake of IP protection. As a safety measure, we create test firmware that only checks if the board’s components are working properly but does not contain any business logic. The team can also develop software for test fixtures that automatically check the work of manufactured PCBAs in factories. 

• Documents for enclosure design 

These are the documents required to manufacture enclosures for the printed circuit board in a factory. They include a 3D model of the PCBA and assembly drawings if required. Although Integra Sources doesn’t design enclosures, we have reliable partners who can take care of this task. 

If the product is tested and certified and you have all the required documents, it’s time to decide whether you want to outsource production to other countries or manufacture the product domestically.

Domestic vs. Overseas Manufacturing

The Advantages of Domestic Production

1. No export and import taxes 

When bringing goods to the domestic market from abroad, you will have to pay additional export and import duties unless there’s a special trade agreement between the two countries.

2. No shipping delays 

When you think about the logistics of electronics manufacturing, domestic production looks more attractive. Transporting goods from other countries, especially those situated in distant regions, increases the risks of delay, lead times, and shipping costs. From this perspective, making goods domestically look more attractive. 

3. Easier to solve issues and disputes

If a problem that requires your personal attendance occurs in the territory of your country, traveling there will take less time and effort than going abroad. Also, solving legal disputes inside your own country is easier than in international courts.

4. No communication barriers

Lastly, when dealing with people who speak the same language as you, there are fewer chances for misunderstandings and confusion.

The Advantages of Outsourcing to Other Countries

1. Reduced production costs

Third-country electronics assembly or manufacturing can be profitable due to lower costs of labor, raw materials, energy, and other indicators compared to developed countries in North America, Europe, and other regions. Additionally, one can benefit from various government incentives. The profit often outweighs additional taxes and shipping costs.

2. No capacity limit

By hiring a contract manufacturer in a country with an advanced electronics industry, you can benefit from its stronger capacity. That is if domestic manufacturers can’t offer the same scale of production. For example, it’s easier to find an EMS provider who will accept a large order in China than in Taiwan. 

3. Bigger market

If you want to sell the products internationally, it is worth moving production to a larger potential market. This is one of the reasons many consumer electronics companies find China so attractive: its population is over 1.4 billion people.

4. Reputation

There are countries whose reputation in the electronics industry serves as a seal of excellence: for example, Taiwan, Japan, and South Korea. Some people are even willing to pay a bit more for the goods produced there. If your own country isn’t one of them, it may be worth outsourcing to such a destination.

Most Popular Countries for Outsourcing Electronics Production

When choosing where to outsource manufacturing, one should take into account several factors:

1. Labor costs and productivity

• Average factory and manufacturing salaries 
• Labor productivity (GDP per hour worked)

2. Logistics infrastructure and transportation costs

• Logistics infrastructure development 
• The cost of export-import operations

3. Macroeconomic and legal environment

• Macroeconomic environment rating
• Ease of doing business

4. The potential of the domestic market and export

• Imports of electronic components
• Export of electronic components
• Population size

Electronics can be outsourced to different countries located mostly in three regions: Asia, East Europe, and North America. Check our post Best Countries for Contract Electronics Manufacturing, Part 1 and Part 2 for more information on some of the countries in the list below.

Asia

China’s electronics manufacturing is very strong. The country is the largest exporter of electronic devices not only in Asia but in the whole world due to various reasons: relatively low labor and energy costs, domestic suppliers of raw materials and components, advanced infrastructure, and factories with high output capacity. 

At the same time, one should not forget about the trade war between China and the U.S., which makes importing goods to America from China more expensive due to high tariffs.

Another concern is potential IP infringement. If a product becomes popular, don’t be surprised to see a neighboring factory manufacturing something very similar. That’s why we recommend that you spend time developing protection against reverse engineering. One can also produce different parts of the device at different locations and assemble the product at yet another factory.

Taiwan started manufacturing electronics long before China. It can boast highly skilled specialists, high robot density, strong IP laws, and advanced infrastructure. The famous TSMC is located here. Such brands as Acer, Asus, and HTC come from Taiwan.

It is also worth mentioning Thailand, Vietnam, Malaysia, and India as these countries have low labor costs and are located close to China and Taiwan, the main manufacturers of electronic components. However, they lack skilled workers and developed infrastructure.

North America

The United States is considered one of the leading electronics manufacturers due to strong intellectual property protection, high quality, impressive labor productivity, and good public perception: around two-thirds of Americans prefer domestic goods over foreign products and are willing to pay 10% extra for them. However, the production cost here is much higher than in Asia.

Mexico, on the other hand, borders the U.S. and has much lower labor costs. It is regarded as a fast-growing electronics industry hub that produces ICs, computer memory and CPU chips, audio and video devices, and more. As a participant in the USMCA trade agreement, the country benefits from special duties for products exported to the United States. All this makes outsourcing production to Mexico potentially profitable if you target North America.

East Europe

Businesses targeting the European market may be interested in outsourcing production to Poland, the Czech Republic, Romania, and Hungary due to their proximity to Western Europe and lower production costs.

Your next task is to find a contract manufacturer.

What Companies Can Manufacture Electronics?

Electronics Manufacturers

There are several types of companies that specialize in manufacturing electronics. They are usually referred to as ODM, OEM, or EMS, which can be confusing. Let’s find out what these terms mean. 

ODM stands for original design manufacturer. These are companies that both design and manufacture their own products, hold the intellectual property rights to the design, and sell the product to 3^rd parties that, in turn, sell it under another brand. ODM businesses also allow their customers to make slight changes to the product, for example, change colors or packaging. 

OEM stands for original equipment manufacturer. This term generally refers to businesses that produce parts or subsystems used in the final product sold by another company. It is a contract manufacturing model similar to ODM, except OEM businesses do not hold IP rights to the product design. Instead, they make products according to the specifications provided by the customer.

However, the term is ambiguous and can have other meanings. For example, it can refer to the manufacturers of systems that include other companies’ subsystems, which means they are brand owners. In this case, such companies as Apple, Microsoft, Samsung, or LG can be referred to as OEM companies.

Generally speaking, the type of company you are looking for is an EMS provider. You can also hear the terms CEM (contract electronics manufacturer) and ECM (electronics contract manufacturer), but they are basically synonymous with EMS.

EMS, or electronics manufacturing services, refers to a business model that implies not only contract manufacturing of electronic components and assemblies but also a range of other value-added services. Foxconn, the world’s largest contract manufacturer of electronics that makes products for Microsoft, Amazon, Sony, IBM, and other giants, is an EMS company.

The range of services EMS companies provide varies and can include any of the following: 

• Electronics design
• Prototyping
• PCB assembly
• Electromechanical assembly
• Testing
• Aftermarket services
• Laser ID Marking on PCBs
• Conformal coating
• Return and repair services
• Supply chain management

Note that most manufacturers offer several types of partnerships instead of adhering to a single business model. So, one and the same company can be an original design manufacturer and offer contract manufacturing services at the same time. Examine the business’ website or contact its managers to make sure they offer the services you want.

Integra Sources specializes in electronics design and embedded software development. Although we do not offer manufacturing services, we have long-lasting relationships with several Chinese manufacturers whom we can recommend.

Enclosure Manufacturers

An electronic device or system usually consists of hardware (one or several printed circuit boards, LEDs, and other electronics) and an enclosure – a plastic or metal shell inside which the hardware is fixed. EMS providers usually specialize in PCB manufacturing, so you will probably have to order enclosures from another factory. 

Some EMS providers do offer both of these services, but in most cases, they simply order enclosures from another facility located nearby. Such turnkey production is more expensive but makes managing the process much easier. 

When contacting a factory, make sure to ask how many pieces of your device they can or are willing to manufacture, as some businesses may refuse to take your order.

What is Minimum Order Quantity?

Manufacturing an average printed circuit board can cost from $0.5 to $500, depending on different factors, including the board’s complexity. If we add the cost of enclosure manufacturing and assembly, the final cost of production of your device grows even more.

Generally speaking, larger order volumes come at lower prices, partially due to economies of scale and partially due to discounts that factories may offer in return for a big order. On the one hand, the more products you produce, the more you have to spend on warehouse rent. On the other hand, the profit from larger volumes often exceeds these extra costs.

However, some factories do not accept just any order as they require a minimum order quantity. MOQ is the lowest amount of products a contract manufacturer agrees to produce. To manufacture a product, a factory has to prepare a production line, buy and transport the required raw resources or assembly components, prepare a warehouse, etc. All this takes a lot of time and resources, so the order has to be large enough to spread out all the costs over all the manufactured units. 

Manufacturers use two types of minimum order quantities:

Simple MOQs have only one requirement stated, either in the number of products to be produced or the cost of the order. If the contract manufacturer agrees to do the job only if you order at least 10,000 devices, that’s an example of a simple MOQ.

Complex MOQs have more than one requirement for orders. It could be the material or component type used, the minimum dollar amount, shipping costs, product color restrictions, or anything else they find critical to the profitability of their business.

The minimum order quantity depends on various factors including:

• Price of raw materials and components: businesses that supply factories with these resources insist on their own MOQs.
• The marginality of the product: the lower the margin, the more products factories have to manufacture in order to make enough profit.
• Market price: factories cannot set prices considerably higher than their competitors.

Small-size manufacturers usually offer low MOQs – starting at 25, 10, or even 1 pcs per order, which also makes them perfect for ordering prototypes during embedded hardware design. But there’s a limit to which they can scale their production. Large factories, on the other hand, can produce in huge quantities but usually insist on higher MOQs, starting at 500 or 1000 pcs per order.

You can learn about the MOQ of a particular EMS provider on their website. But remember that the minimum order quantity can be negotiated if you have something of value to offer in return.

Finishing Burst

Product Assembly

After the electronics and enclosure for your product are manufactured, these components must be assembled. Assembly can usually be entrusted either to your EMS provider or to your enclosure manufacturer. Naturally, you will need to organize the shipping of enclosures or electronics to one or another unless you find a provider offering a turnkey service. 

You can also assemble the final product in yet another location, even in another country. But it’ll complicate the logistics of electronics manufacturing even further.

It’s also a good idea to order a trial batch first. It will prove that the manufacturer can make a product of satisfying quality and that the production cost is low enough. 

Testing & Certification 

Before shipping a product to another country, you must obtain a certificate of conformity (CoC) or a letter of conformance. These documents certify that your product complies with specific quality and safety standards, laws, and regulations applied in the importing country. 

The process of obtaining one varies depending on the type of product you’re importing and the country’s legislation. But there are general steps an importing company can follow:

• Identify the bodies responsible for issuing CoC.
• Contact them and request an application form.
• Fill out the form and provide supporting documents: the manufacturer’s contact information, copies of test reports, technical files, and manuals.

The authorized body will review the application and issue a CoC if everything is OK. 

Packaging 

Make sure to discuss packaging with the factory responsible for shipping your PCBAs or assembled products. During transportation, electronics can suffer from many hazards and, therefore, must be properly protected.

Bubble wrap or foam is commonly used for absorbing vibrations and impacts. To protect electronics and printed circuit boards from moisture, bags of silica gel are usually used. To shield electronics from electrostatic discharge events, one can use anti-static bubble wrap (it’s different from regular bubble wrap) or ESD bags (aka pink poly).

When hiring a forwarding agent, make sure the company has dealt with electronics and PCBAs before.

Shipping Products 

Professionals spend years honing their skills in logistics, so here we can only give general tips.

When it comes to overseas trade, there are two common transportation methods: air freight and ocean freight. 

Shipping goods by air is generally more expensive but takes less time. It suits small and light batches. Ocean freights take longer and are limited by sea ports only, but this is the cheapest shipping method.

When transporting goods by sea, you can choose between two shipment modes: FCL (full container load) and LCL (less than container load). In the case of FCL containerization, one container is filled with goods from one client. With LCL, a container is filled with goods from more than one client. LCL is generally cheaper for an average shipment but takes one or two weeks longer. Besides, the chance of damage, misplacement, and loss is higher. FCL is faster but pricier.

On land, shipping goods by rail is the cheapest option, especially when it comes to long distances. Trucks, on the other hand, usually move faster because they can choose shorter routes. But this speed difference only works for short distances.

Export/Import Customs Clearance

If you choose to manufacture and sell your product in different countries, you will have to deal with export and import procedures. Make sure you have prepared all the required certificates and permits. 

The customs clearance procedure and the list of required documents depend on the local regulations, the type of product, and the trading agreements between the importing and exporting countries.

Export documents typically include the following: 

• Export declaration
• Bill of lading 
• Commercial invoice and packing list
• Certificates of origin for your goods
• Insurance documents 
• Export license and permit (depends on the type of goods to be exported)

Import documents typically include:

• Import declaration
• Bill of lading
• Commercial invoice and packing list
• Copy of the import permit and/or license 
• Certificate of origin
• Insurance documents 

When a consignment arrives at the customs, the officers examine, classify, and evaluate it. Based on this evaluation and export/import tariffs, duties are calculated. Remember that the consignment cannot cross the border until the required duties are paid. Most countries have zero export duties for most goods except for agricultural products, natural resources, and semi-manufactured goods. The importer usually has to pay import duties and value-added tax. Forwarders and customs brokers/agents also charge a customs clearance fee.  

To make things simpler, make sure you choose an experienced supplier that knows what documents you are going to need. We also recommend hiring a forwarder with expertise in exports from a particular country and knowledge of local procedures. Lastly, hire a customs broker as well so that the agency can handle the customs clearance process on your behalf. Most forwarders provide customs clearance brokerage as additional services.

Distribution

After the consignment arrives in the importing country, the products can go to wholesalers or distributors, who will distribute them to customers or retailers. If you produce the goods domestically, consignments can go to the intermediaries right from the factory. Details depend on your product type, business model, and other factors.

The easiest way to handle shipping is to hire a forwarding agent, whose responsibility is to arrange the transportation of goods from one location to another.

Conclusion

Outsourcing electronics production to foreign EMS providers complicates logistics and increases the product cost due to shipping costs and export/import duties – if you want to sell the goods in your own country. You will also face certain communication barriers and other issues.

Nevertheless, third-country electronics assembly or manufacturing can be very beneficial if it helps decrease production costs. Many Asian countries have lower wages and energy prices compared to the U.S., Japan, South Korea, and Western Europe. China’s electronics manufacturing industry is the largest in the world. Despite the growing labor costs and American sanctions, the country remains the world’s top location for contract electronics production due to the vast experience of local EMS providers, cheap raw materials, the proximity of component manufacturers, and advanced infrastructure.

If you don’t have a product design yet and want to turn your idea into a fully functional device, give us a call. Integra Sources has experience in developing consumer electronics, smart home systems, IoT devices, medical equipment, and other embedded solutions. We use the DFA/DFM approach in our work and always aim to minimize the manufacturing cost of products. We can also recommend reliable electronics manufacturers.

What Is Software Development Estimation?

The success of a project largely depends on its accurate assessment. Estimating a software project is challenging as it requires an understanding of all stages of the project, experience in solving similar tasks, and a good command of software tools.

Each development company works on a project in its own way, so we are going to tell you how a software development project is evaluated here at Integra Sources. 

When a customer comes to us with an idea for a software product, he or she, at the outset, wants to know the development duration and cost.

First, the customer receives a rough estimate. It may differ from the final cost, but the customer immediately gets an idea of how long the development will take and how much it will cost.

Then, specialists delve into the development details and create a detailed table, which displays the minimum and maximum estimated hours for each project stage.

The estimate always contains a range of minimum and maximum estimated hours. The range can be small if we’re dealing with a routine project and significant if the project is complicated.

The minimum number of hours can be spent in the ideal course of the process when everything goes like clockwork, which rarely happens in real life. The maximum number of hours includes the time needed for correcting bugs, searching for optimal solutions, etc.

In addition to the project duration and cost, customers often want to know what software tools will be used to create the program: programming languages, libraries, and frameworks.

A software app project estimate may have a portfolio with apps created by the team and app screenshots so that a client could evaluate the team’s UI/UX design skills.

Project estimates may also include team size if the client needs to meet strict deadlines or wants the work to be done as quickly as possible.

Software project evaluation depends on many factors. Let's list just a few of them.

• Project development specification

The team should clearly understand the objective and scope of the project to make accurate software development estimates. The more details the client provides about the future software solution, the more precisely the development team can estimate the project duration. 

All customer’s ideas and requirements regarding the software product are set out in the project development specification. The customer can prepare a requirement document in-house or entrust it to an outsourcing development team.

Some project categories, such as medical software and electronics development, require the customer to carry out a lot of preparatory work. The client prepares a discovery phase report that contains a detailed product description, a proof-of-concept, software UI/UX design, and many other details. The team uses such a report first to evaluate the project and then throughout development.

• Project size and complexity

The larger the project and the more tasks it contains, the more difficult it is to estimate its duration. Complex project evaluation is usually carried out by all the team members involved in the development.

• Experience in developing similar software products

Evaluating a typical project (for example, Windows audio and video drivers) will not take much time or cause any difficulties. A rough estimate will practically correspond to the final development cost.

Estimating the development of a completely unfamiliar software product is much more challenging because the team has no experience with similar solutions.

• Software team skills

If software developers are fluent in all the tools necessary for a given project (programming languages, libraries, frameworks, and development environments), then it is much easier for them to estimate the duration of each project stage since they clearly understand all the tasks and can foresee possible issues.

What Does a Project Estimate Consist of?

The hours allocated for a project can be divided into two parts:

• development hours;
• hours of additional activities.

Let's talk about the hours allocated for development. The team uses different criteria for software and hardware development estimates since the objects of evaluation are different. 

Software development can include application design, interface layout, database design, server software development, library creation, frontend and backend development, etc. 

Electronics development may include schematic and PCB design, PCB assembly, FPGA design, and embedded software development (very often, it goes without an interface, so the embedded software estimate will be different from the app estimate).

Development duration also includes the time required for electronic components (for hardware development) or the customer's device (for software development) to arrive.
Pauses caused by long component delivery and parallel development processes are clearly visible on a Gantt chart. It is a must-have for  IT project estimation as it shows the project schedule to the customer and helps distribute the workload between developers.

The additional hours estimate has the same components for both software and hardware projects. It includes testing, debugging, preparing documents, project management, communication, and handover. Additional activities take up half the project time, or even more, and grow with the project size. The larger the project, the more time is spent on it. 

PCB and electronics testing can be carried out in special laboratories if necessary, which increases the number of testing hours. 

The project budget can also include pre-certification activities.

When developing an electronic device and its embedded software, we first estimate the hardware development hours since the software part will depend on what electronic components we will use. If the task is to design a device and a mobile application for communicating with it, then the evaluations of the hardware and software parts can proceed in parallel.

Please note that changes in electronic component selection will invariably affect embedded software, meaning development hours can increase significantly.

Estimation Techniques

There are many approaches to effectively estimating a software project and its critical parameters such as cost, scope, and time.

Analogous estimating is based on comparing the effort needed to complete a project with a similar project finished in the past. It is suitable for typical projects or stages where experts are confident in every development step. Analogous estimating helps save time and resources as the team does not evaluate each task from scratch.
Top-down estimating is a form of analogous estimating and is based on expert opinions.

Bottom-up estimating covers the entire scope of a project and implies calculating the cost and time for each task. This detailed approach involves all team members and focuses on the smallest details.

The bottom-up approach is suitable for non-standard projects or stages, especially if the team has no history of running similar tasks. By working through all the development steps, programmers can find ingenious ways to complete a task in a shorter time without losing quality. 

Three-point estimating uses optimistic, pessimistic, and most likely scenarios to find an accurate project estimate.

There are two calculation formulas.

1. The triangular distribution is a weighted average of the optimistic estimate (o), the pessimistic estimate (p), and the most likely estimate (m).

2. The Beta distribution (or PERT) is a weighted average, with the most likely scenario given four times more weight than the optimistic and pessimistic estimates.

Generally, the PERT distribution results in a more accurate estimate than the triangle method.

The Wideband Delphi method is based on a peer assessment of the time required to complete a task. The technique involves conducting several rounds of task assessments made anonymously. Team members discuss results between rounds and can revise their estimates. Eventually, the team should reach the most accurate estimate.

IT project estimation techniques can be associated with a particular project management approach. Agile project management (APM) is based on the ability of the team to quickly adapt to changing development requirements. APM uses flexible approaches to project evaluation.

T-shirt sizing is a method that considers project task sizes as if they were T-shirt sizes, such as XS, S, M, L, and XL. Everyone knows approximately the difference between T-shirts in XS and XL sizes. Likewise, the developers are well versed in the task sizes without the need to measure each of them.

The T-shirt size technique implies that the development team does not estimate the time required to complete a task or predict a specific deadline but compares the size of one part to the size of another.

Planning poker (or Scrum poker) is an estimation technique used in the Scrum management methodology. Projects are estimated with the help of poker cards. This technique minimizes the anchoring effect: when participants' estimations are influenced by a judgment previously expressed by another team member (especially a reputable one).

Each technique has pros and cons, so you can use holistic project estimation methods to reach a high level of certainty and improve the reliability of the estimates. Thus, the PERT estimating method is often used with analogous estimating or with top-down technique.

You can mix methods for different stages of the project. For example, the poker planning method can be used at the beginning when there is still uncertainty and insufficient information, and the three-point estimation technology can be used later when all the necessary information has been collected.

Techniques Our Experts Use

The Integra Sources team uses holistic project estimation approaches when evaluating software development. When getting started on a project, we rely on estimates of similar past projects and consider the expert opinions of the developers. We also use a three-point technique to provide a detailed project duration and cost estimate.

If a project is complex or contains challenging tasks, we apply the bottom-up technique, breaking down the project into smaller tasks and estimating how much time and effort each task will take.

Sometimes, but not as often, our team uses scrum methods, like T-shirt sizing, Planning poker, etc., to understand how quickly we can move through development stages and how we can optimize processes.

Who Makes Software Project Budgeting?

The project manager is responsible for software project planning. The PM adds all the necessary additional activity hours to the project estimate. Different specialists may be responsible for estimating development hours, depending on the IT project estimation technique chosen. 

At Integra Sources, the project is evaluated by technical leads and developers. Furthermore, the CTO always validates the final project estimate before sending it to the customer.

Software Project Estimate Issues

First, the effort spent on estimation depends on the project itself. Large, complex, and unique projects make estimation more difficult and errors more likely to occur.

According to statistics, poor estimates during project planning are one of the most common causes of project failure.

What does underestimating a project lead to?

• The project goes far beyond the budget in terms of time and cost, which cannot but affect its results and further cooperation. Exceeding the budget rates leads to misunderstandings and disputes. The team and the customer spend even more time trying to figure out what went wrong. 

• Software product quality may suffer due to haste caused by deviations from the schedule. As a result, the customer either receives a solution with many shortcomings or has to wait longer until the developers fix the bugs caused by the rush.

The better safe than sorry principle is not always true when it comes to project evaluation. Yes, the final estimate includes additional time to resolve possible difficulties and unexpected situations since there are no ideal projects. However, an overestimated project can scare away the customer, whose natural desire is to have software developed faster and for less money.

An incorrect assessment has ruined more than one project, and, unfortunately, we have had such an experience, too.

Our development team conducted a rough estimate of electronics and embedded software development. There were some doubts about whether we correctly understood the customer’s wishes and would be able to implement the project. We advised the client to conduct pre-project preparation and write a thorough requirement document.

Having carefully studied the specification document, our developers increased the estimate by 1.5 times since the project turned out to be more complicated than we expected and the customer added new requirements. The new cost appeared too high for the customer, and he stopped the project.

The biggest lesson we have taken from that unsuccessful project many years ago, at the very beginning of our activities, is that we should evaluate projects as carefully as possible, clarifying in advance all the unclear moments with the customer.

Another thing that can scare customers away is when estimates change too much.

Why Might the Estimate Change?

Fluctuations in project estimates can occur for many reasons. Here are the most common ones:

• Software developers misunderstood the customer's wishes. 

Most often, this happens due to a poorly drafted requirements document or when there is no document and all the requirements are explained verbally.

High-quality pre-project work and a thorough specification can minimize the risks of incorrect project estimates.

• The task took longer than planned.

Some development stages may turn out to be more difficult than initially expected, or there may be many nuances, for example, when developing medical solutions. Programmers may spend more time when they do not have enough expertise in a specific programming language or software tools.

Such moments are difficult to avoid or predict, and a competent estimate of software development should include additional hours for challenging tasks and unforeseen circumstances.

• The customer wanted to make changes to the electronics functionality or add new software features.

Most often, it happens to software projects (e.g., app development) since the client’s wishes are not limited by the hardware architecture's capabilities.

Keep in mind that even seemingly small changes in software design or functionality can result in a large number of additional development hours.

Conclusion

It is not that easy to accurately estimate software development duration and cost. There are many things to consider, including time for force majeure, logistical delays, and finding solutions to challenging tasks.

Incorrect project evaluation can cause the loss of a project and a client. That is why precisely estimating the time and effort put into development is so vital.
Diverse development experience and mastery of various project evaluation methods will help the outsourcing team achieve accurate budgeting. Tell us your ideas, and we will estimate how long it will take to put them into practice and how much it will cost.

What are Embedded Systems?

Embedded systems consist of computer hardware and software; but unlike personal computers or smartphones, they are designed for a specific function or a set of closely related functions. They typically perform only one task, while a PC can perform various tasks – programming, calculating, drawing, gaming, etc.

A typical embedded system has the following structure:

Thus, embedded system design requires deep knowledge of both electronics engineering and programming. Such projects require the following specialists: 

1. Project managers participate in the pre-sale phase. If you contact Integra Sources, you can discuss your idea with them as they have the necessary skills to make a rough estimation of the project. They also organize and supervise the work of the team on a particular project. For customers, PMs are the main contact person in the development team.

2. A system analyst and a tech lead are responsible for collecting and analyzing the requirements for the future system and thorough project estimation. The tech lead also designs the architecture of the future solution.

3. Embedded developers are front-line layout engineers and software engineers responsible for designing printed circuit boards and coding programs. 

4. QA specialists are responsible for testing solutions under development. 

To make embedded system development faster, the team usually works on hardware and software simultaneously. Nevertheless, for convenience, let’s consider hardware development and embedded software design as separate parts. 

Embedded System Design: Hardware Development

1. Requirements gathering and project development specification

Since Integra specializes in outsource embedded electronics development, the ideas of new products usually belong to our customers. When the team joins a project, our first task is to gather the requirements for the future device:

• Functional requirements (what the system must do);
• Non-functional requirements: performance, scalability, security, size, weight, and other important features.

Customers with no technical background find it difficult to formulate requirements for their products. They tend to pay more attention to marketing and functional features but lack an understanding of the technical side and feasibility of the project. So, the key challenge here is to interview the client thoroughly. 

It’s also important not to promise more than we can do. If what the customer wants is barely realistic, our job is to tell him or her the truth, explain why, and offer feasible alternatives.

Based on this information, the Integra team creates a project development specification – a document that describes the purpose, functions, behavior, and other requirements for the future device. 

2. Technical proposal

At this stage, the team creates a document that describes the architecture of the future system and the solutions we are going to implement. 

We also select components for the future device. The choice here is limited by the product requirements:

• Technical characteristics: power consumption, memory capacity, MCU performance, size, weight, etc.
• Operating environment: extreme temperatures, humidity, vibration stress, etc.
• The cost and quality of the components.
• The availability of the components (if the device is supposed to be mass-produced).
• Developers must find a balance between the cost of the future embedded system solution and its performance.

3. Schematics and PCB design and layout

The device under development must not only perform its key functions but also be safe and reliable. During embedded hardware design, the team takes into account the following issues:

• The design of the board must fully comply with the PCB design rules so that the device can serve as long as possible with no issues.
• Due attention must be paid to heat dissipation, especially when designing a powerful device. It can be achieved with proper component placement, or by extending the copper area, adding vias, using a cooling radiator, or by other means. 
• The components we have never used before must be tested to make sure they function as their data sheets indicate.
• PCBs must be protected from EOS and ESD events, EM interference, environmental hazards, and other factors.
• If the embedded system is to be mass-produced, we must follow the Design for Manufacturing (DFM) principles.
• The board must be designed with certification requirements in mind (if the client wants the product to be certified).

Data sheets may contain errors and inaccuracies. And since embedded product development is a costly service, such problems must be revealed before we spend the customer’s money. Besides, if the job requires a non-standard approach, we must make sure it’ll work for a given project. In such cases, the team may want to build a proof-of-concept prototype first. Electronics prototyping allows us to prove an idea, check the work of components, and reveal various issues at an early stage of embedded development.

Prototyping may require creating not only PCBs but other elements of a system. During one of our projects, we were developing a computer vision algorithm that was supposed to control a robotic manipulator. The model we ordered was too short compared to the measurements provided by the customer, so the team had to make a longer arm, using a shaped metal tube and support elements printed on a 3D printer. This way, we could test the algorithm.

4. Testing

Our team tests PCBs under development at each phase of the process. Tests can show if the board functions correctly and complies with various certification requirements. Tests are conducted both after and during development so that we can reveal and eliminate all kinds of defects and issues before moving on to mass production. Read our article on PCB and electronics testing to learn more. 

Often, the team needs to create custom testing firmware that checks if the PCB works as expected. When the product is ready for mass production, we also develop factory testing firmware. 

What is Embedded Software?

Creating software is the other part of embedded system design. Unlike applications that run on PCs or smartphones, embedded software is created for specific hardware, i.e., can only run on the microcontrollers of special-purpose, non-computer devices. A program that controls a smart watch, a digital camera, a multimeter, or a washing machine is embedded software.

Such programs are built into devices or machines to control them and/or perform a limited range of functions. Often embedded software is installed in devices permanently – although nowadays it can be updated through wireless connection (over-the-air (OTA) update). It is stored in non-volatile memory – ROM, EEPROM, or flash memory. Without it, the device won’t work and turn into a piece of metal and plastic. 

Most embedded programs (except for embedded apps) don’t have a graphical user interface (GUI). They are designed to interact with other software through external interfaces rather than with users through a GUI. If a program does have a GUI, it is typically used for configuring the program and outputting limited data (for example, the information about the device’s state).

The purpose of embedded software is to control a device by transmitting data between the hardware and higher-level programs.

Embedded software retrieves signals and data from the hardware. The program interprets them as commands and data sequences, used for creating various objects, and transmits them to higher-level software.

When embedded software receives commands and objects from higher-level software, it translates them into signals and data arrays and transmits them to the hardware.An embedded system solution can have up to four levels of embedded software:

Firmware

Firmware is a type of computer program that boots a piece of hardware and provides it with low-level instructions. Operating systems and applications run on top of firmware. It is written in low-level languages (typically in C/C++). To let the device read it and execute the instructions, the program is then converted into machine code.

Embedded operating system

Embedded OSs are specialized software that controls system resources. With drivers and APIs, an OS provides application-level software with access to the device’s hardware. Applications run on top of embedded operating systems.

Middleware

Some embedded software designs can include middleware. It’s a software layer between the OS and the application. Virtual machines are typical examples of middleware. A VM emulates a platform and executes a computer-independent code, thus making it compatible with different operating systems. For instance, programs written in Kotlin are converted to a Java code (application level) that, in turn, is executed in a virtual machine (middleware level) running on an operating system (OS level).

Embedded application

Just like typical apps for computers, this type of software performs the functions of the embedded system and directly interacts with users. It processes data, interacts with other devices, and performs high-level functions. Embedded applications are written in high-level languages such as C++, Python, and Java.

An embedded system can incorporate firmware only or more levels of embedded software. Additionally, a solution may require desktop or smartphone applications to function properly. Our team can create all these types of programs for your solution, so give us a call to discuss the project in detail.

Sometimes, embedded applications, embedded OSs, and middleware are referred to as firmware, while the term embedded software is extended to include firmware and embedded software development tools. There is no uniform terminology for these concepts.

Embedded Software Development Tools

Developers use the following tools to create embedded software:

• Integrated Development Environments (IDE) are toolsets that contain various programming instruments such as editors, compilers, debuggers, and more
• Compilers and cross-compilers translate the code written in a high-level language into a low-level machine code.
• Debuggers help developers find and eliminate bugs.
• Linkers can combine different pieces of code and modules into a single executable program. Modern compilers have built-in linkers.
• Simulators and emulators provide simulated environments close to real-life conditions for testing programs.
• System configuration and code generation tools automatically generate code for configuring the hardware components of a device. They minimize manual coding and, therefore, error rates.
• Code suggestion tools are AI-based instruments that analyze the code written by a programmer and autocomplete it with contextually relevant snippets. They considerably speed up embedded system software development.

Disassemblers are used to reveal errors made by compilers. Sometimes, it is easier to eliminate errors at the assembler level.

Challenges of Embedded Software Development 

1. Hardware platform selection

The future embedded software design can be roughly estimated when the team creates the technical proposal as experienced developers can see what hardware resources they can expect. 

Of course, the team prefers more powerful MCUs with larger memory capacity. But if it’s not an option and we have to use a less powerful alternative, we need to analyze the project thoroughly to be sure we can implement all the features and optimize the code for this particular hardware.

Since embedded software systems interact with hardware (microcontrollers, sensors, buzzers, etc.), developers need to study the equipment before they start coding. The problem is that certain models may lack the necessary documentation or the data sheets may contain mistakes, inaccuracies, and outdated information.

One of our projects required a module that could simultaneously receive GPS coordinates and transmit data using GSM. The data sheet claimed the module was capable of both, but the device didn’t function properly during tests. The team contacted the manufacturer, and the company admitted that the module couldn’t perform both functions simultaneously. To switch between GSM and GPS modes, it needed to be rebooted. This fact was not mentioned in the data sheet.

This situation is not uncommon for cheap components. Contacting the developer of the hardware usually helps. Sometimes, the developer doesn’t respond, and the team has to analyze the hardware by itself. But these are usually simple components designed by small companies, so studying them is not too difficult.

The manufacturers of expensive hardware typically provide full information in their data sheets but using them makes the final product more expensive.

2. Selecting a programming language and operating system

The choice of programming language is determined by hardware and the type of software we want to create. For example, programs for Android-based devices are created in Java, while software for single board computers is written in C or C++. C is suitable for low-level programming, i.e., for programs that interact directly with the hardware. C++, Python, Java, Rust, and other languages are suitable for high-level programming.

Our team specializes in C/C++ development because a programmer experienced in C++ can use the Qt framework to create both embedded software and application-level programs. Although there are safer alternatives to C/C++ (e.g., Rust), our team is highly qualified and knows how to avoid typical mistakes of this sort. So, by entrusting your project to us, you save money because we don’t need to hire more developers specializing in other languages.

Devices that perform simple actions can function with the so-called bare-metal firmware that doesn’t require an operating system. However, electronics with complicated functions do need an OS.

Here developers have many options: Embedded Linux, Android, Windows IoT, RTEMS, and more. The choice is determined by several factors:

- project goal;

- available hardware resources; and

- development cost.

Powerful hardware can hold resource-demanding operating systems. For instance, writing software for Ubuntu won’t take much time but will require powerful and expensive hardware as Ubuntu has many services, drivers, and packages. Weaker hardware makes developers spend more time optimizing and customizing the code, so embedded software programming grows more expensive.

Our team prefers free operating systems because creating software for them is easier and cheaper. But we can also create programs for proprietary OSs if the customer insists. 

3. Software architecture design

Before writing the code, developers think through the architecture (structure) of the future solution. The architecture includes software elements, the relations among them, and their properties.

Since we deal with different hardware platforms and are limited in resources, we can’t use a single architecture template for all projects. Embedded system design requires optimal solutions, so a universal architecture won’t work here. We have to pick from a number of architecture templates and customize them for each particular project.

Often embedded products under development are only a part of a bigger system. A project may also require developing application-level software that will interact with the device somehow. In theory, the team can design embedded software first and move on to other tasks after that. But to make the process faster, our embedded team creates a document that describes external interfaces and protocols for interacting with the programs so that the other teams can start their work as soon as possible. It’s a common practice that speeds up the process.

Sometimes, we create a mock service that emulates the work of the embedded program and generates synthetic data for the application-level software under development.

4. Coding

When everything is settled, the team gets to coding. The key difference between embedded software and application software development is that embedded programs don’t have complicated logic. The true challenge is to make the software interact with the hardware and control it correctly.

• Lack of information

Application software developers have lots of frameworks with ready-made solutions and tons of information on the web. But embedded software developers create code for non-standard, heavily customized equipment. They need to understand how this particular hardware works, so they spend a lot of time studying data sheets and/or testing the hardware manually.

Within one of our projects, the solution under development was supposed to send commands to MacBook computers via a USB port. The commands are represented by sets of bits, but Apple doesn’t provide any information on this matter in official documents. So, the team had to search different forums to find the information.

• Data security

Many embedded devices have access to the Internet. If they transmit sensitive data, the communication must be secure. Here we have a range of standard encryption methods. For instance, right now the Integra team is working on a medical device that transmits biometrics via the Internet. This kind of data must be protected. However, encryption raises the hardware requirements, so developers don’t use it when data carries no sensitive information.

• Memory and performance shortage

Embedded devices are getting smaller, while the performance requirements for them are increasing. Although memory shortage isn’t as critical today as it used to be, it is still a problem for embedded software development.

Power limitation is another typical problem for battery-powered devices. The work of its software must be programmed in such a way as to minimize electricity consumption. To do so, developers can reduce the number of instructions for the processor core. Another way is to put the processor core to sleep mode until an outside event (such as timer interruption) occurs. We mentioned both these techniques in our article devoted to firmware development practices. 

• Stability

Although software can’t “break” like hardware components do, it can still crash. Most of such problems are caused by incorrect memory access.

Here is a typical example. Process 1 calculates a variable and puts the value into a memory cell. This value is required by Process 2. Since the two processes run in parallel, Process 2 may access the memory cell before Process 1 calculates the value, which causes a crash. 

When coding, developers must foresee such situations and give processes proper instructions – for instance, instruct Process 2 to make sure Process 1 has calculated the value before using it.

• New requirements

Sometimes this phase becomes challenging because the customer decides to extend the functionality of the device or wants to change the requirements for the project. The hardware platform chosen at the preparation phase may not be sufficient for the new features, and the team may even be forced to start over. 

• Optimization

Software optimization plays a huge role in embedded system design as we are always limited in resources. Programmers can make software fast but memory-intensive or vice-versa – memory-friendly but slow. Modern compilers offer many types of optimizations so that developers can find a balance between these extremes.

5. Testing and debugging

A typical application can be tested on a computer, but embedded software is designed for devices and equipment. So, developers need a fully featured test station or even field trials. QA specialists have to be very resourceful.For example, when working on the aircraft towing system, the team had to test the distance-measuring module somehow. Our QA specialist designed and created a special stand with a 3D printer. The module was fixed on the stand, while the stand was attached to the hood of a car with a magnet.

Sometimes we need to develop software for a device that we don’t have – for example, if it’s too heavy to transport or when we design a PCB for a larger system. This makes testing even more difficult.

In that case, the customer can install TeamViewer or a similar solution on a computer and connect the PC to a camera and the device under test. This way the team can connect to the PC to give commands to the device and see what’s happening through the camera.

Applications are usually standalone products, while embedded programs always interact with hardware. When an error occurs, it’s difficult to tell whether the problem was caused by hardware or software – especially during field trials when the testers are limited in diagnostic tools. The only way to see if the software is working properly is to upload logs to a connected laptop in real time. 

As for hardware, QA specialists use oscilloscopes, voltmeters, multimeters, and other tools to check if the PCB and its components are working properly.

Our team designed a device consisting of a single-board computer and two PCBs. The SBC was supposed to send a heartbeat package to one of the boards to confirm it’s still working. If the PCB did not receive the package, it was supposed to reboot the computer automatically, which the board did all the time during tests.

The team checked the bus with a logic analyzer and confirmed the SBC sent the correct signal, which proved the problem was caused by the firmware of the PCB that didn’t process the package correctly.

If the device fails due to an equipment defect, the team can fix it “manually” instead of manufacturing a new PCB, which would raise the development cost. 

Conclusion

Embedded system design is a complicated process consisting of many steps and requiring professionals specializing in electronics engineering and embedded programming. The team has to overcome many challenges at each phase from requirements gathering to testing. Moreover, to speed up the process, hardware design and embedded software development must be done in parallel. Integra Sources is a well-knit team with rich experience in embedded electronics development. We know what challenges to expect at each step and how to deal with them. Don’t hesitate to contact us if you need help with your project idea.

Why Do We Need a Specification?

A requirement specification for hardware and software development is a document that defines the requirements for an IT product, including its purpose, functions, behavior, components used, technologies, development tools, and working procedures.

A project dev specification serves as the guide for business and technical teams involved in IT solution creation.

A requirement specification is equally necessary for both the customer and the developer. Being the work of specialists from different fields, a spec is used by the client and contractor throughout the entire development process and after the project is finished.

• A project dev specification for device design or software development allows customers to get preliminary estimates of the product development cost. The cost of sophisticated devices and high-performance apps is hard to estimate offhand. It is necessary to consider a fairly large number of points: labor, components, logistics, certification, and whatnot.A well-written document allows the contractor and the customer to see and evaluate the entire development process and its stages. Thus, the customer will get an idea of the preliminary cost of each work stage. More accurate data is set out in a project estimate.

• A specification indicates an approximate time frame for the project. The client and the outsourcing company will not disagree on terms if each period of the project stage is indicated in the document from the very beginning. Hardware and software development terms can be shifted due to various reasons. Some of them, such as components' waiting times and delivery times, can be foreseen when writing a specification.

• It will be easier for the customer to evaluate the finished solution – an electronic device, application, firmware, or hardware-software system – by comparing it with the description in the requirements specification. That is why the spec should be drawn up competently and as thoroughly as possible.

• A well-written project development specification can say a lot about the competence and experience of the specialists who compiled it. The developers' thoughtful approach to the preparation of the project, as well as clear and comprehensive information given in a spec show the company's service level.

• Joint work can be interrupted or frozen due to certain circumstances: financial and legal constraints, geopolitics, disagreements between business partners, serious logistical problems, etc. With a perfectly crafted specification for IT product development, it is easier for the customer to return to cooperation with the outsourcing company or to find a new one.

• The requirements document describes the product itself, its purpose and functionality, as well as its development stages, electronic components, and software tools to be used. Thus, both the customer and the developer have a thorough understanding of the future IT solution, which serves as insurance against disagreements, misunderstandings, and unplanned changes in the product concept.

Developers’ work gets easier and faster when they rely on a requirements specification. There is no need to spend time coordinating each step with the client.

Can We Do It Without a Spec?

It's not so easy to write project dev specifications. Spec preparation requires time and high qualifications and, naturally, costs money. Therefore, trying to save time and money, the customer may choose to prepare in-house specs or not write any requirement documents at all.

Is it possible to do without technical specifications? Can a client explain what the product should be in simple words, show a sample, or ask to do it by a template?

Any typical project, even a small one, requires a requirements document – a paper that will record all the requirements regarding the product, components, and workflow. This document may not be the project development specification in the classical sense, but you still cannot do without it.

When contacting a custom software and hardware development company, the client can provide a document in which his ideas, wishes, and product vision are presented in any form.

The client's competence in design and programming is a big advantage, but the main thing is to explain the client's wishes for the product as clearly as possible.

Based on this explanation, the developer company will create a full-fledged, high-quality requirements specification that will serve as a guideline in subsequent development.

How to Write a Spec

The technical specification contains subject data and detailed descriptions of the development process. The more difficult the task, the more specialists will be involved in writing the requirements specification, and the more information the finished document will contain.

Who Writes a Requirement Document?

One can't use templates and tips from the Internet to create a good specification.

Requirements documents for device design and software development are written by specialists who know all the process nuances: work stages, terms, components and technologies required, and the final product characteristics. PMs, developers, and testers contribute their data to the document, building an overall project picture.

You can entrust the creation of project development specifications to in-house specialists who know exactly what product you need and can specify the desired functions and characteristics of the device or program in the document.

But this often results in double work, a waste of time and money.

The requirements document created by the outsourcing company takes into account all the client's wishes and the contractor's capabilities (component-specific and language-specific expertise, development experience, etc.).

All points of the technical specifications must be agreed upon by the customer and the developer so that the customer receives a product that meets all requirements.

What Should Be Included in a Project Dev Specification?

Requirements documents are developed for specific projects and, as a rule, are unique. Nevertheless, some points are present in one way or another in all technical specifications for software, hardware, and embedded system development.

Terms, Abbreviations, and Definitions

The terms used in the text are defined at the beginning of the document. These can be IT concepts (element names, development environments, programming languages, and technical definitions), as well as words and designations from the area for which the IT solution is intended. 

The more carefully the list of professional words is thought out, the better the contractor and the customer will understand each other.

Product Summary

This block describes the purpose of the IT solution, the reasons for its creation, and the target audience.

Businesses often want to develop an IT product to increase their client base, create a positive image of the company, increase labor productivity, decrease manual labor, etc.

This paragraph also contains information about the objectives of the project: it can be developing a turnkey solution, participating in a separate stage (for example, working on software for a finished hardware platform), or improving an existing product.

Goals must be specific and clear so that the final product meets the requirements and is helpful to the customer.

Project Requirements

The requirements for the project are the basis of the specification and its most significant and detailed part.

Typically, this block contains the following subsections:

General requirements define the phases of the development process.

Here is an example of general requirements for developing a hardware and software system for equipment control.

Project stages:

• To develop a controller to manage client devices.

The controller must be installed on each device. 

• To create a device control panel using a Linux-based single-board computer.
• To develop an application for remote control.
• To integrate the control panel and controller into a single system.
• To test the system.
• Subsequent system improvements and modifications

Functional requirements refer to the IT solution's functions and behavior.

Example:

• The system should send notifications about equipment failures.
• The system must control the sensors.
• The system must transmit data over a radio channel.
• The system must have an alarm.
• The system must manage all the device functions.

Non-functional requirements define performance, scalability, maintainability, product security, and other criteria.

Requirements for the development process can be presented in several paragraphs and describe work stages, components, and software tools to be used.

For example, in a project dev specification for a software and hardware complex, you may need a paragraph describing the requirements for the device, communication protocols (MQTT, TCP, etc.), and a user application for managing the device.

The statement of organization and quality of work determines how to arrange everything related to the project: communication between the customer and the contractor, the main points regarding the quality of the system, device, or software product (continuous operation time, system behavior in an emergency, and whatnot).

Security issues may contain requirements for code protection, access control, access rights, etc.

In addition to the main points, the spec contains blocks that are individual for each project, for example, roles for access control, interface requirements, and requirements for the device size and appearance.

What Is a Good Project Development Specification?

What should a quality specification for hardware and software development look like? How many pages do you need – one or fifty? Should you use formal language or technical slang? Do you need pictures or not?

First, the project development specification should be written in clear and simple language, as it will be studied not only by technical specialists but also by sales managers and the customer's team. Of course, you can’t do without technical terms, but you shouldn’t overload the text with them either.

Schemes, drawings, and tables are not compulsory but highly desirable. Graphic elements convey information visually, which many find more comprehensible.

The spec size depends on the project's scale and complexity. The larger the project, the more preparatory documents are needed. The requirements specification for a battery management system, a project that will take several years, cannot be a one-page document. 

However, it is necessary to strive for a balance of conciseness, clarity, and informativity even when writing technical specifications for large-scale projects.

What can go wrong if you don’t pay due attention to specification preparation and study? At the very least, it will cost additional time. At worst, it can cause disagreements between the parties and lead to a product that does not meet the customer's requirements.

We faced such situations. Our customer came up with an idea for a device. But some of its functions could not be implemented together. In the specification document, we described the only possible solution, but, unfortunately, the client didn’t pay attention to it. Needless to say, the result unpleasantly surprised him.

To avoid such consequences, the customer should devote time to study the specification: discuss details and delve into the finished document.

It is better to entrust the preparation of technical specifications to professionals – those who will undertake IT solution creation. It doesn't matter if you don't have a clear understanding of the development process, you can just come to them with an idea.

A competent outsourcing team that deals with custom electronics design and software development can draw up a high-quality specification, discuss all the details with the customer, consider all wishes, and select the most appropriate element base and software tools.

A good spec will save time, money, and nerves for both the client and the developer.

Typical Mistakes in Specifications

It's crucial to avoid common mistakes when drawing up a requirements document. Let's take a close look at some slips.

No glossary

What it was: The virtual assistant provides voice interaction, MX Player, Spotify, TuneIn, Audible, Pandora, Hungama, and Ganna playback, and information about EPL, MLB, NBA, NHL, etc.

What it should be: The virtual assistant provides voice interaction, music playback (MX Player, Spotify, TuneIn, Audible, Pandora, Hungama, and Ganna), and information about sports events (EPL, MLB, NBA, NHL, etc.).

Music services: MX Player, Spotify, TuneIn, Audible, Pandora, Hungama, Ganna.

Abbreviations of sports organizations:

EPL: English Premier League

MLB: Major League Baseball

NBA: National Basketball Association

NHL: National Hockey League

Unclear wording

What it was: Since its introduction in 1983, MIDI has developed into a mature standard with a wide range of products and applications. It is a standard that specifies both the hardware connection needed to share the data physically as well as the data protocol for exchanging musical control information.

What it should be: The MIDI (Musical Instrument Digital Interface) format allows you to standardize musical equipment from different manufacturers.

The protocol provides digital data transfer between devices, music playback, and control of auxiliary equipment (pyrotechnics, lighting, etc.).

Too detailed description

What it was: The GS Format is a set of guidelines created by Roland to standardize the performance of sound-generating equipment. It supports all features listed in the General MIDI System. Additionally, the highly compatible GS Format gives a greater variety of sounds, allows for sound editing, and specifies numerous specifics for a wide range of supplementary features, such as chorus and reverberation effects. 

The GS Format was created with the future in mind, making it simple to add additional sounds and support new hardware features as they become available. It may be retrofitted to work with the General MIDI System. As a result, Roland's GS Format can faithfully play back GM Scores just as well as GS Music Data (music data written using the GS Format).

What it should be: The GS format is Roland's extension to the General MIDI standard to unify audio equipment characteristics. It supports all the features listed in the General MIDI System, supplementing the standard with new instruments, effects, and functions.

Mixing functional and non-functional requirements

What it was: The system must maintain the water temperature in the heating tank at no higher than 50°C.

What it should be: Functional requirements: the system must maintain a user-defined water temperature.

Non-functional requirements: the water temperature in the heating equipment must not exceed 50°C.

Conclusion

The development of an IT solution – an electronic device, application, embedded software, or IoT system – is preceded by writing a project requirements specification. A spec can be a short document or a lengthy detailed one depending on the project's scale and complexity.

A specification gives an idea of the purpose and functions of the product, the requirements for its development, the stages of work, and the procedure for accepting the completed solution.

The requirements document is the result of the teamwork of the project manager, developers, testers, and, of course, the customer.

As writing technical specifications is a complex process, it requires deep knowledge and expertise in software and hardware development. People who prepare specifications should be able to navigate the electronic components market, evaluate logistics routes, and present information.

The best decision would be to entrust the requirements specification preparation to the outsourcing development company. The crew will take into account its expertise and all the customer's wishes. In this case, product development will go faster and more comfortably.

You can apply to Integra Sources with your idea, and we will help you create a unique application, electronic device, or software and hardware system of any complexity. We will prepare a concise and understandable requirements specification, which will serve as the basis for further cooperation.