Chinese Electronics Factories: Quotes, MOQs, Tiers
3 resources tagged with "Factories"
Not every supplier that calls itself a factory actually makes anything — a large share of Shenzhen "factories" are trading companies reselling other people's lines. The real factories quote high MOQs (often 1,000–5,000 units for custom electronics) because tooling, reel setup, and minimum PCB panel runs have fixed costs that don't shrink at low volume. Reading a quote line by line — separating tooling (NRE), unit price, and certification cost — is how you tell an export-grade OEM from a middleman padding margin.
When you deal with factories, the core skill is distinguishing tiers: domestic-grade, export OEM, and trading company. Each quotes differently, and the cheapest unit price often hides a thin or unverifiable factory behind it. Match the quote's line items to what a genuine manufacturer should be able to break down.
Guides (3)
FAQ
Why do Chinese electronics factories quote such high MOQs?
Fixed setup costs drive it: SMT line changeovers, component reels bought in full quantities, and minimum PCB panelization. A 500-unit run can carry nearly the same setup cost as 5,000, so factories push MOQ up to amortize it. Standard catalog items have far lower MOQs than custom designs.
How can I tell a real factory from a trading company?
Ask for a line-by-line quote with tooling and unit cost separated, request the business license and its scope, and check whether they can discuss process details (SMT line count, test fixtures). Trading companies deflect technical questions and resist factory video tours.
What's actually negotiable in a factory quote?
Unit price moves a little at higher volume; tooling/NRE is often a one-time fee you can sometimes amortize; payment terms and certification ownership are very negotiable. MOQ itself is hard to move much on custom work because the cost driver is real, not arbitrary.
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