Decision guide

Turnkey vs. split suppliers: which is actually cheaper?

Almost every hardware team faces the same choice at the start of a build: hand the whole job to one supplier, or split it between a board fabricator, a component broker and an assembly house and save on each line. The per-unit prices look better when you split. The invoice at the end often does not.

  • Below ~1 000 unitsTurnkey usually wins
  • Above thatSplitting can win
  • Hidden costsFreight + re-qualification
  • What decides itTotal cost, not unit price
The short answer: below roughly a thousand units, turnkey is usually cheaper and faster once you count the costs that never appear on a quote — extra freight, re-qualification, and the hours you spend coordinating three vendors. Above that, or if you already work with a fab and an assembler you trust, splitting can win on unit price. Turnkey means one supplier owns the bare board, the components and the assembly — one quote, one lead time, and one party accountable when something is wrong.
A rigid green circuit board with a polyimide flexible tail looped above it
Two processes, one boardFabrication and assembly are separate processes that happen to end up on the same board. Whether they come from one supplier or two is a commercial decision — but it changes who answers when the board does not work.

What "turnkey" actually means

The word is used loosely, so it is worth being precise.

True turnkey means one supplier owns the bare board, the components and the assembly. You send a Gerber file and a BOM; you get back a finished, tested assembly. That supplier is responsible for the fabrication, for sourcing every part, and for placing it correctly — and when a board comes back dead, there is nobody to argue with about whose fault it is.

This is different from a fabricator that "also does assembly" as an add-on, and different again from buying from three specialists and coordinating them yourself. The difference is not the work being done — it is who carries the risk.

The two models, side by side

The comparison that matters is not unit price. It is everything that surrounds it.

One turnkey supplier vs. splitting the work across three
DimensionOne turnkey supplierSplit across three suppliers
Quotes to reconcileOneThree, arriving at different times and in different formats
Lead timeOne schedule, from fabrication through assemblyThe fabricator must finish before the assembler starts — days are lost in the handoff
Component sourcingSourced against the BOM by the same supplier that assemblesYour problem, unless you pay a broker to do it
When a board failsOne party is accountableFab, broker and assembler each point at the other two
Coming back from a defectReworked by the same team, at their cost if it is their errorSub-assemblies travel between sites; re-qualification starts again
FreightBare boards do not ship anywhere — they move to the next processBoard to broker, broker to assembler, assembler to you
Setup paid forOnceThree times — fabrication tooling, incoming inspection, assembly setup
Your timeOne contactYou become the project manager, unpaid

Where the savings hide — and where they don't

Splitting the work looks cheaper because the visible line items get smaller. These are the lines that do not show up until later.

1. The coordination is not removed, it is moved onto your desk

Three suppliers means three sets of emails, three schedules to reconcile, three sets of questions to answer that only you can answer. At a hundred boards, the difference between one supplier and three is rarely the unit price — it is the number of people you have to manage. If your time is worth anything, it is already on the invoice, just not on theirs.

2. Rework is where the money actually goes

When a board comes back and does not work, the first question is why. Was the bare board fabricated wrong? Was the part counterfeit or the wrong grade? Was the placement off? With one supplier, that question is answered internally and the fix is their problem. With three, the question becomes a negotiation — and the parts that are already assembled cannot easily be un-assembled to prove a point.

3. Setup is paid per supplier, not per order

Every supplier in the chain has its own setup: fabrication tooling and drill programming, incoming inspection and re-reeling at the broker, stencil and line changeover at the assembler. None of these shrink because your order is small — they are all fixed costs, and splitting the work multiplies the number of them you pay.

4. Freight between every step

Bare boards are manufactured, then shipped. Components are bought, then shipped. Nothing moves for free, and international shipments carry customs handling at both ends. When the board never leaves the building between fabrication and assembly, none of that exists.

Which model wins, and when

Choose turnkey if

You are building 1 to a few thousand units, the product is still changing, and you do not want to become the coordinator between three vendors. This is the range where turnkey is genuinely cheaper once the hidden costs are counted.

Split the work if

You are running tens of thousands of units or more and can amortise the coordination across a large order — or you already have a fab and an assembler whose processes you trust and whose lines are already set up for your board.

A practical rule: split the work when the volume is large enough to make the coordination worth doing, and the product is stable enough that there is nothing left to change. Below that point you are paying for flexibility you are not using.

When this advice does not apply

This page argues for turnkey, so it is only fair to say where that argument breaks down.

Three cases where you should ignore everything above.
  • You already have a fabricator and an assembler you are happy with, and only need one step of the chain — keep the relationship.
  • Your volume is high enough that a specialist's unit price beats the coordination saving, and your design is frozen.
  • You need manufacturing inside your own country for ITAR, defence or local-content rules. No overseas supplier, turnkey or not, can solve that for you.

More on where we fit and where we do not: who we are right for →

Common questions

Is turnkey always cheaper than splitting the work?

No. Below roughly a thousand units turnkey usually wins once you count the hidden costs, because the setup, the freight and the coordination are paid once instead of three times. Above that, or if you already work with a fab and an assembler you trust, splitting can win on unit price.

Who is responsible if an assembled board is faulty?

With one supplier, we are — there is no argument about whether the bare board, the component or the placement caused the defect. When the work is split, the fab, the broker and the assembler can each point at the other two, and the cost of that dispute lands on you.

Can I send my own components and still get assembly?

Yes. You can supply the BOM yourself as consigned stock, or we can source the components from our own supply chain. Consigned parts are yours to source, but note that we cannot warrant components we did not buy — that is a limitation of the model, not a policy.

Send us your Gerber and BOM

If you are in the range where turnkey makes sense, the fastest way to find out what it costs is to send us the files. We will come back within 24 hours with a price, a lead time, and anything in the design we think you should fix before it is built.

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