Quality, communication, IP protection: When does local production pay off?
The Decision: Local or Offshore?
The choice of manufacturing location is one of the most important decisions in electronics production. Both options have clear advantages and disadvantages. Blanket statements like "Asia is always cheaper" are often wrong – especially for small and medium quantities.
Advantages of European Manufacturing
EMS providers in Europe like SMTEC AG offer decisive advantages:
- Direct communication: Personal contact, in your local language, without time zone differences
- Consistent quality: European precision, ISO-certified processes
- Flexibility: Short-notice changes and reorders easily possible
- Simple logistics: Straightforward logistics within Europe
- IP protection: European legislation protects your intellectual property
- Short distances: Production facility visits possible at any time
When Does Asia Make Sense?
Asian manufacturing can be economical for very large series of 100,000+ units:
- Lower unit costs at very high volumes
- Large capacities for mass production
- Established supply chains for standard components
But beware of hidden costs:
- Customs and import duties
- Communication overhead (time zone difference, language barrier)
- On-site quality control or rework
- Risk with complaints and returns
Important: Depending on technology and complexity, highly automated manufacturing partners in Europe can also offer very competitive pricing – even at high volumes.
Cost Comparison: An Example
Let's take a typical project: 200 units, 150 SMD components, 10 THT components
| Cost item | Europe | Asia |
|---|---|---|
| Assembly | CHF 2,200 | CHF 1,100 |
| Material | CHF 2,800 | CHF 2,600 |
| Shipping | CHF 50 | CHF 320 |
| Customs/Import | CHF 0 | CHF 260 |
| Communication | Low | 5–10h effort |
| Total | CHF 5,050 | CHF 4,280+ |
The price difference of ~15% is often offset by time savings and reduced effort.
Our Recommendation
- Prototypes: Always local (speed is critical)
- Small series (10–500 units): Europe recommended
- Medium series (500–5,000): Europe often competitive
- Large series (10,000–100,000): Automated European manufacturers often offer very attractive conditions
- Large series (100,000+): Asia may be cheaper depending on the product – compare total costs carefully
SMTEC AG manufactures prototypes and series – fast, flexible, and at the highest quality. Request a quote now →
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SMTEC AG manufactures prototypes and series – fast, flexible and of the highest quality.
Request a quote →


