Hardware Startup Manufacturing in China
2 resources tagged with "Hardware Startup"
For a hardware startup, the hard part starts after the crowdfunding campaign closes: turning a working prototype into 5,000+ repeatable units without burning the raised cash on tooling mistakes. The path runs prototype to DFM review to a pilot run (often 50-200 units) to mass production, and early on you choose between OEM (you own the design) and ODM (you buy the factory's existing design). The classic founder error is locking injection-mold tooling — often $5,000-$30,000 — before the DFM review catches a part that can't be molded as drawn.
When a startup manufactures in China, the OEM-vs-ODM choice sets who owns the IP and how much NRE you pay, and the pilot run is what de-risks mass production. We push founders to validate a small pilot batch and finish DFM before committing tooling, because that is where most of the avoidable cost lives.
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FAQ
OEM or ODM — which should a hardware startup choose?
OEM means you supply the design and own the IP, paying for tooling and NRE; ODM means you adapt the factory's existing product, which is faster and cheaper but gives less differentiation and weaker IP control. Sensors and custom industrial gear usually go OEM; commodity gadgets often start ODM.
How much does tooling cost for a first hardware run?
Injection-mold tooling commonly runs $5,000-$30,000 depending on part complexity and cavity count, and it is largely sunk once cut. Complete a DFM review before paying for tooling to avoid expensive mold revisions.
What order quantity comes after a successful crowdfunding campaign?
Most startups run a pilot of 50-200 units to validate the process, then scale to a first mass-production PO in the low thousands. Jumping straight to 5,000 units without a pilot is how quality and yield surprises become expensive.
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