1. Basic Concepts

OEM (Original Equipment Manufacturing)

OEM means that the customer completes the PCB design by himself, and the factory produces it according to the design drawings. The customer controls the design process, and the factory is responsible for manufacturing. For example, the customer provides Gerber files, bill of materials (BOM), and process requirements, and the factory produces PCBs according to the files.

Core Features：

· Customers have the right to design

· Factories are only responsible for production according to drawings

· Compete in manufacturing efficiency and cost control

ODM (Design + Production)

ODM means that the customer proposes requirements (such as functions, performance, and application scenarios), and the factory is responsible for the entire process from design to production. The customer does not participate in the design, and the factory provides a complete solution. For example, if the customer says "a PCB that supports 5G is needed", the factory will complete the circuit design, layout, and production.

Core Features:

· The factory has the design rights

· Provide one-stop service from design to production

· Compete in design capabilities and technical services.

2. Core Differences

3. Typical application scenarios

Common scenarios for OEMs

· Mass production of standardized products: Such as automotive ECU control boards and industrial equipment motherboards. The customer's design is mature and only requires the factory to produce efficiently and stably.

· High-end technology areas: Such as server high-frequency and high-speed PCB, medical equipment PCB (certification required). Customers trust the process capabilities of professional factories more.

Common scenarios for ODM

· Rapid iteration of consumer electronics：Such as TWS headset PCB, smart watch motherboard. Market demand changes rapidly, and customers need solutions quickly.

· Small brands or startups：We do not have our own design team and rely on ODM manufacturers to provide a full range of services from design to production.

4. How to choose a mode

Suitable for OEM

· The customer has a strong design team and only needs to find a factory for production.

· The product is mature and stable, and there is no need to change the design frequently.

· Pursue large-scale production with low cost and high yield.

Suitable for ODM

· The customer has no design capabilities or wants to save R&D time.

· The product needs to be launched quickly (such as new consumer electronics products).

· Customized design is required (such as special functions, special environment applications).

5. Summarize

· OEM model: the customer controls the design, the factory is responsible for production, suitable for standardized and large-volume products.

· ODM model: the factory is responsible for design + production, suitable for customized and fast-iteration products.

· Key differences: ownership of design rights (customer or factory), source of profit (processing fee or design + processing fee).

Enterprises can choose OEM, ODM or a combination of the two models based on their own technical capabilities, customer types and market positioning.