If a device has strict real-time requirements, its firmware can be implemented as a bare metal program or an RTOS-based application. Making the right choice between the two options at the start determines not only the software architecture but also the economics of the entire project. This impacts hardware and license costs, time to market, and future support expenses. To make such decisions based on experience from completed projects rather than blindly, contact our team for a consultation or to kick off full-scale development.

Making the wrong choice can significantly complicate your project. For instance, you might end up with an overly complex RTOS-based system where a simple superloop would have sufficed. Or conversely, a bare-metal system that becomes expensive to rework when requirements for functionality and scalability grow. 

Key Properties of Bare Metal Firmware

This type of software runs directly on the hardware level without an operating system. It consists of one large superloop in which commands execute sequentially, unless the loop is stopped to handle an interrupt.

If the program doesn't involve a large number of interdependent tasks, bare metal offers clear advantages over RTOS. It’s more predictable despite having no task scheduler, it’s easier to debug, consumes less hardware resources and energy. The latter allows using simpler and cheaper microcontrollers. But as the application grows more complex, bare metal firmware becomes harder to develop, debug, support, and scale.

Advantages

• Minimal overhead.
• Low resources requirements.
• Predictable latencies: no hidden background tasks.
• Fast boot time: minimal initialization code.

Disadvantages

• Hard to scale: code quickly turns into “spaghetti.”
• No built-in tools or services. The developer has to create custom ones or integrate third-party libraries.
• Limited multitasking.

Bare-metal firmware is typically developed for small, simple devices that don't require multitasking or complex resource management. The list includes DC motor controllers, thermostats, relays, basic lighting controllers, keyboard controllers, and so on. Designing embedded software based on an RTOS would be unnecessarily complex for such systems. It would only make the project longer and more expensive, also raising the cost of the device's bill of materials.

Typical Bare-Metal Architectures

One should keep in mind that programmers rarely use pure architectures in practice. A real code usually combines elements from different approaches. As the complexity of the application grows, developers resort to more advanced practices.

1. Superloop

This is the simplest software architecture. All its logic runs inside an infinite loop. The microcontroller polls inputs one by one, reads, processes, and records data, updates states, controls outputs, and calls the necessary functions. Once the code reaches the last line, it starts over.

Pros

• Superloops are easy to develop from scratch. There’s no complex logic or parallel processes.
• The developer retains full control over timing: code execution isn't interrupted by unscripted operations.
• No need to allocate hardware resources: there's always just one process.
• Minimal overhead (consumption of resources for computations that aren’t directly related to the application’s functions) and requirements for Flash or RAM.
• Programs with this architecture end up small and straightforward.

Cons

• Poorly scalable. As developers add more tasks, the code grows, and delays in the loop increase.
• As the codebase expands, it becomes unstructured, confusing, and hard to read, which makes the app more difficult to support and debug.

2. Superloop with Interrupts

If a pure superloop can’t handle the required functions, firmware can incorporate interrupts. In this architecture, part of the functions is handled by the main infinite loop, while another part is managed by interrupt handlers.

The loop still sequentially executes the main logic, but asynchronous or time-critical hardware events aren't polled by the loop. Instead, they trigger interrupt handlers. An interrupt halts the main loop, saving the context of all registers used at that moment, launches the handler, which performs the necessary computations, records the result, and then resumes the main loop.

Pros

• Allows for achieving acceptable response times for critical hardware events without making the superloop too complicated.
• The program remains predictable and understandable.
• Low overhead because there are no intermediate execution paths.

Cons

• Data from interrupts must be manually synchronized. The easiest way to do it is by using flags. Developers also need to keep an eye on flags to ensure processes run in the correct order, which somewhat complicates development, code readability, and debugging.

3. Event-Driven System

Instead of sequentially performing a hardcoded list of actions in a superloop, this architecture uses events to perform the required functions.

The developer defines a set of events: for instance, receiving a byte via UART, ADC result ready, button pressed, and so on. When an event occurs, hardware interrupts create an event object or code and place it in a queue. The event dispatcher, running in the main loop or a dedicated handler, pulls an event from the queue, checks for subscribers, and if any exist, calls the corresponding handler. The handler processes the event and returns control to the dispatcher. The process continues until the queue is empty.

Pros

• Supports complex logic with many functions, while the app remains lighter than an OS-based equivalent, with lower hardware requirements.
• The microcontroller only wakes on events rather than spinning an idle superloop. It reduces power consumption and latency for critical signals.
• Easier to scale than a superloop with interrupts. You just need to add events and subscribers. Event handlers can be created as relatively independent modules.

Cons

• Harder to debug.
• Scaling makes it harder to track handler interactions and avoid mutually exclusive processes.
• In a pure event-driven system, it’s harder to implement true parallel processes.

4. Finite State Machine 

A Finite state machine, or FSM, is a model of a system that always stays in one of a predefined, limited set of states—for example, off, idle, launching, error. Upon receiving specific signals or events (button press, byte received, timer expiration), the machine transitions to another state. Transitions follow predefined rules that dictate which state to move to for a given event and what actions to perform.

Finite state machines are essential when a linear superloop cannot handle the device's logic. Trying to implement the same functionality in a superloop turns the code into a mess of if/else statements and flags: “if the button is pressed and we're already connected but not in update mode, and the rightmost toggle is on, then...” This only drags out project timelines and creates support headaches.

Finite state machines are often used in event-driven systems, where they serve as the event handlers.

Pros

• The code becomes transparent: all possible device states and transitions between them are explicitly described.
• Predictable behavior: instead of vague checks across multiple flags, each state defines explicit, guaranteed responses to events.
• Developers describe device operating modes as state transitions rather than tangled conditions in a superloop, simplifying the logic.
• Easier scalability: just add a new state and its transitions.

Cons

• States cannot be added indefinitely. As the number of states and transitions grows, the logic becomes hard to understand and modify.
• If the device was initially designed for simple scenarios, but the logic then gets much more complex, you have to rebuild the structure from scratch.
• Continuous computations, complex signal processing algorithms, filtering, optimization, etc., don't fit well into this architecture in its pure form. You may need to add standalone modules with “traditional” code.

5. Using a Task Scheduler

A task scheduler is a component of the software logic that allocates CPU time among various processes (programs, scripts, commands) at specified times.

Many operating systems have built-in schedulers. But when dealing with bare metal firmware, developers have to create custom ones.

Pros

• A scheduler provides “lightweight” multitasking and controlled time distribution among logic components. It lets you explicitly define task priorities, rather than relying on implicit management via if-statement order and superloop iteration length.
• Having a scheduler brings firmware closer to RTOS capabilities, but hardware requirements remain low.
• A custom scheduler can be just a few dozen lines of code, tailored exactly to the system's needs without the abstractions or generality of a full RTOS.

Cons

• As the number of tasks and timing requirements grows, the scheduler logic quickly becomes complex.
• No built-in synchronization mechanisms. Semaphores, queues, events, mutexes, or priority protocols must all be implemented from scratch. It extends development time. 
• Most custom schedulers use the cooperative multitasking model, where tasks must voluntarily yield control. In this setup, a single poorly implemented, suspended, or computationally heavy task can block everything else.

Example of Bare-Metal Firmware: Graphic Calculator

Our graphic calculator project is a good example of bare-metal firmware development. The calculator is a relatively simple device that doesn’t have many complex and parallel tasks. Its core logic fits perfectly into the superloop paradigm. Developing an RTOS-based embedded software for it would have been excessively labor-intensive and only slowed down the project. Choosing bare metal sped up development and simplified debugging. As a result, the project required fewer revisions, reducing overall development costs.

Nearly all the calculator's functionality consists of repeating tasks implemented in the superloop. At startup, the microcontroller initializes the peripheral hardware. In the main loop, the device resets watchdog timers, updates LED states, polls the battery level measurement module, and handles mathematical tasks. Most of the time, the microcontroller stays in a low-power wait mode to save battery. Every 1 ms, it wakes up and runs the main loop.

Two tasks in the firmware are time-triggered using the microcontroller's hardware timer. The device polls the keyboard every 10 ms. When a keypress is detected, the program updates the calculator's screen to reflect the change. In this project, it was easier and more reliable to detect keypresses via polling: the MCU's speed eliminated concerns about delays. Additionally, the microcontroller refreshes the screen regardless of keypresses every 33 ms.

This approach breaks a single infinite superloop into several logic tasks that run not every cycle, but periodically via timer. No full RTOS is needed.

USB interaction is implemented via interrupts. When a USB data packet arrives, a handler stores it in a dedicated static buffer. The buffer is processed in the main loop, allowing quick release of the USB for the next packet. The system uses a synchronous protocol for interacting with a PC, preventing overflows in the USB receive buffer.

If you're contacting the development team with your project, we recommend discussing hardware migration possibilities right at the start. RTOS applications are easy to port, but bare metal requires that you make provisions for that.

For instance, when the graphic calculator project began, we selected the GD32F470 microcontroller for its optimal price-performance ratio at the time. The calculator's features have expanded significantly since then, and it now lacks memory. A GD32 with the required characteristics is unavailable, so we're discussing a migration to STM32 with the client. The team anticipated this situation when the project started, so we split the embedded software into two parts: one for business logic and one for hardware interaction. To migrate to a new MCU, the team only has to rebuild the hardware-specific part. This architecture also enables seamless support for both device versions, plus implementing a PC and web emulator of the calculator.

Key Properties of RTOS-Based Embedded Software 

Real-time operating systems (RTOS) are specialized OSes designed to meet the strict timing constraints of embedded devices. RTOS-based firmware uses the OS’ built-in services for task scheduling and synchronization as well as drivers and APIs for hardware interaction.

This type of embedded software demands more hardware resources and has higher power consumption. Some microcontrollers don’t have enough memory to accommodate an RTOS application. However, using an OS greatly simplifies and accelerates embedded software development for complex programs that must handle multiple tasks in parallel. Built-in tools make it easier to create, debug, and scale the code.

Advantages

• Multitasking support.
• Modularity and scalability.
• Predictable real-time performance at high complexity.
• Built-in tools and services.

Disadvantages

• Higher resource consumption.
• Requires higher developer expertise.
• Overkill for simple tasks.

RTOS is ideal for designing electronics that have multiple concurrently running subsystems with strict but manageable timing requirements. RTOS-based firmware is typically used in industrial controllers, robotics, automotive electronics, medical solutions, smart devices, and such. 

Typical RTOS-Based Firmware Architectures

As with bare metal, the architecture of firmware grows in complexity as needed and may incorporate elements from different approaches, which is highly recommended to determine during the project estimation phase.

1. Multithread Architecture

This is the classic software architecture that effectively makes use of RTOS multitasking capabilities. The application is divided into several execution threads, or tasks. For example, one thread for networking, one for sensor processing, one for the user interface, and so on. The OS kernel decides which thread runs at any given moment according to its rules. The RTOS kernel stores thread contexts (registers, stack pointers) and switches between tasks based on timers or events. It selects ready-to-run threads and allocates CPU time to the highest-priority one.

In simple programs, threads have minimal interdependencies. Built-in OS tools like mutexes, semaphores, queues, and events manage resource and data sharing for thread-safe operation.

Pros

• Easy to scale by simply adding new threads.
• Each thread acts like a standalone program, making the code modular and easier to support.
• RTOS provides built-in inter-component interaction mechanisms.

Cons

• Increased design complexity. You must carefully plan priorities, task interactions, and avoid classic multithreading pitfalls like mutual deadlocks, priority inversion, and more. Otherwise, you risk causing race conditions, where multiple threads access the same resources simultaneously without proper synchronization.
• Races, deadlocks, and timing bugs in multitasking systems are frequent. But discovering them is not an easy task, which makes debugging harder.
• Like any other RTOS architecture, this one requires more hardware resources than bare metal.

2. Message Passing via Queues

This architecture resembles the event-driven model. Tasks “communicate” through messages. A producer task forms a message (a structure with data or a command) and places it in a queue. A consumer task is blocked until the message appears in the queue. Then it wakes up and processes it.

Data exchange is configured using RTOS primitives: blocking waits, timeouts, priority processing, and queue sizes. This enables clean management of data flow and load.

Pros

• Tasks don't access memory simultaneously; instead, they pass data copies or small descriptors via the queue. This drastically reduces race condition risks and makes interaction points explicit.
• Tasks “sleep” when there's no work, avoiding CPU waste on polling. It's logically cleaner and more power-efficient.

Cons

• Increased complexity. Developers must think through message formats, who sends what to whom, queue management, error handling, and overflows.
• Higher memory and time overhead. Queues need buffers, and sometimes big ones, as messages can be quite “heavy”.
• In small systems with just 2 or 3 tasks and simple logic, message-passing architecture is overkill.

3. Using Interrupts

Real-time operating systems also support hardware interrupts. The program reacts to hardware events as quickly as possible the same way it does in the bare metal architecture with interrupts, while “heavy” logic runs in OS tasks. A hardware event triggers an interrupt. The CPU suspends the current task and executes a short interrupt handler. After the handler finishes, the RTOS scheduler decides which task to run next.

Pros

• Minimally possible latency for external events. Tasks can be split into time-critical ones and “heavier” but less urgent ones.
• Combines the speed and hardware reactivity of interrupts with the structure and multitasking of RTOS.

Cons

• Higher development and debugging complexity. The team must carefully choose which tasks react to interrupts, as “heavy” handlers lead to unstable latencies and missed events.
• Many frequent interrupts increase overhead from handler entry/exit and task context switches. Poor design can consume a significant portion of CPU power.

4. RTOS-Based Event-Driven Systems

Modern real-time operating systems also provide tools for building event-driven architectures. Instead of constantly polling states, each task waits for an event: a signal, flag, queue message, semaphore from another task, or timeout from the system timer. When the event occurs, the task wakes up, processes it, often via a finite state machine, and returns to waiting.

With this approach, one can create an RTOS version of an event-driven system, conceptually similar to bare metal but distributed across multiple threads.

Pros

• The RTOS-based event-driven architecture offers a cleaner, more efficient way to react to multiple conditions simultaneously compared to alternatives.
• Tasks are blocked while waiting for events, avoiding CPU waste on polling flags or queues.
• Tasks can wait for multiple conditions at once.
• The event-driven architecture is easy to scale. A single event set can manage synchronization across many tasks, effectively replacing numerous semaphores and notifications, reducing memory and kernel call overhead.
• Fits naturally with finite state machine models. The system transitions to the next state upon a specific event instead of polling multiple conditions in each task's superloop.

Cons

• Higher risk of race conditions and lost events.
• Requires more effort to ensure predictable behavior and response times.
• Debugging gets harder due to asynchrony and event combination.
• RTOS kernel may be underutilized: a lot of overhead operations serve the events, while the typical features of the scheduler and synchronization primitives go underused.
• Risk of architectural inconsistencies in hybrid systems: the same subsystem might use different signaling methods, making its behavior hard to predict. 

Example of RTOS-Based Embedded Software: EEG System

Our team created an RTOS-based firmware when developing software for an EEG system. The client designs solutions for electroencephalogram registration. They contacted Integra Sources after creating hardware for a new product and requested firmware development within a reasonable deadline.

The customer wanted the device to be able to register EEG, transmit data to a tablet, and receive commands from it at the same time. So, the system had to handle several fairly “heavy” tasks simultaneously. The most critical were processing and storing EEG data from the analog-to-digital converter (ADC), plus BLE data exchange with the tablet. The solution also required intensive data exchange between tasks.

Given these requirements, the best way to create the firmware was using an RTOS. It provides tools for parallel tasks and synchronization, which significantly speeds up embedded software development. The team selected FreeRTOS—a high-quality, open-source OS.

The firmware architecture for this project is based on a multithreaded implementation augmented with interrupts, events, and message passing. For instance, the ADC data processing task launches upon receiving a hardware ADC interrupt. Raw converter data is placed in a queue. It acts as an event that triggers data processing and recording to a microSD card. Before finishing, the task sends a “data written to SD card” event to the BLE interaction task.

While the first task sleeps, the BLE task runs. It sends study data to the tablet in real time or receives commands from it. Incoming BLE packets are also stored in a queue. For example, if a “stop study” command packet lands in the queue, it triggers the corresponding task.

Conclusion

In embedded electronics development, choosing between bare metal and RTOS isn't a matter of technology. It is a matter of control, complexity, and system scaling.

Bare metal wins on simplicity, cost, and predictability where logic is relatively straightforward and hardware imposes tight constraints. RTOS shines in more complex systems with parallel tasks, intensive data exchange, and high demands for scalability and support. The choice should stem from functional requirements, timing needs, microcontroller resources, and product evolution plans. This is where you need an experienced team that can guide you.

If you're planning a new device but unsure which approach fits your project, contact Integra Sources for a consultation. We'll help you choose the right tech stack and develop firmware that can both go through the first launch and survive multiple device generations.

​Low-noise equipment finds many uses: in satellite communications, radars, radio astronomy, and precision measurement instruments. Let’s consider two engineering tasks from our own embedded hardware design practice. These examples come from very different domains: high-fidelity audio systems and medical diagnostics. The first task requires amplifying the signal from a moving coil phono cartridge. The second one requires boosting brain bioelectric potential.

The Integra team has successfully tackled engineering challenges across diverse fields from consumer electronics to industrial and medical solutions. If you’re planning to  design low-noise electronics or other types of custom hardware, contact our team for a consultation.

​Though the tasks mentioned earlier appear unrelated at first glance, both demand high-quality amplification of extremely weak signals that can easily get lost in the amplifier's internal noise. So, if we ignore the amplifier's own noise during electronics design, it can result in a non-functional device.

Let’s start off with several common noise types that engineers frequently address when dealing with low-noise electronics design.

Types of Internal Noise

Thermal Noise

Thermal noise, or Johnson noise, is a random noise voltage that arises from the random thermal motion of particles in the resistive element.

Any component with non-zero ohmic resistance generates this noise as long as its temperature is above absolute zero (-273.15°C). Even a resistor that is simply sitting on a workbench acts as a thermal noise generator. Thermal noise is white noise, meaning it has a flat frequency spectrum. The formula below gives the root-mean-square (RMS) noise voltage generated by a resistor of value R at temperature T over a bandwidth 𝚫ƒ and measured in V(rms).

Here is another formula that shows the spectral density of thermal noise voltage, measured in $V(rms)/\sqrt{Hz}$.

One can use a simplified version that omits Boltzmann constant. The result is measured in $nV/\sqrt{Hz}$:

For example, a 1 kΩ resistor at room temperature has noise voltage spectral density of 4.1 $nV/\sqrt{Hz}$. It generates 581.2 nV(rms) in a 20 kHz audio bandwidth.

Shot Noise

Electric current is an ordered flow of charged particles, i.e., it has a discrete nature. As a result, a steady-state DC current value shows fluctuations. This is shot noise, or Poisson noise. It’s another example of white noise with a flat spectrum.

The formula below gives the (RMS) noise current for a DC current I_dc over a bandwidth 𝚫ƒ measured in A(rms).

The formula for noise current spectral density measured in $A/\sqrt{Hz}$ is as follows:

We can also use a handy simplified version that gives a value measured in $pA/\sqrt{Hz}$:

Important note: these formulas apply only when charged particles penetrate an energy barrier—for instance, a diode's p-n junction or a bipolar transistor's base-emitter junction. The current in purely resistive circuits generates far less shot noise.

For example, a transistor base current of 10 μA produces noise current density of 1.78 $pA/\sqrt{Hz}$. That's 251.7 pA(rms) in a 20 kHz audio bandwidth. It might seem tiny, but as we'll see later, you can't always ignore these levels.

Flicker Noise

Flicker noise, or 1/f noise, is extra electronic noise stemming from irregularities in the conductive material, as well as from charge carrier generation and recombination in semiconductors. It has a pink spectrum, where power drops as frequency rises.

Noise types covered above are irremovable due to fundamental physics. For instance, even top-tier, pricey resistors produce the same thermal noise as cheap carbon ones of the same value. On top of that, in real components, there are sources of additional noise. Actual components have resistance fluctuations that create additional noise voltage proportional to the DC current flowing through. It’s a classic case of flicker noise in components.

The graph below shows noise voltage spectral density versus frequency, with a clear flicker component. You can see the corner frequency that roughly separates pink and white noise regions. The lower the corner frequency, the better the component's noise performance.

Now let's cover the key parameters to consider when designing low-noise electronics.

Signal-to-Noise Ratio (SNR)

It is the ratio between signal power and noise power typically measured in decibels. You can express it using signal and noise powers:

Or via their RMS voltage values:

Keep in mind that for narrowband signals (e.g., a single tone), widening the measurement bandwidth hurts SNR, since noise power rises while signal power stays the same. The goal is always to maximize signal-to-noise ratio.

Amplifier Noise Figure (NF)

It is the ratio between the output signal of an actual amplifier and the output signal of an ideal, noiseless amplifier with the same gain and source resistance R_s at the input. Amplifier noise figure is measured in decibels. While SNR describes the signal, ANF describes the amplifier itself. It shows how much the real amplifier's noise affects the overall circuit noise, or, put another way, how much noise the amplifier produces compared to the noise from source resistance.

This also means that there is no point chasing an ultra-quite amplifier for a source with high internal resistance: the source's own resistance noise will still corrupt the signal. 

There are two ways to calculate amplifier NF—by using noise power or the ratio between input and output SNR:

Ideally, the amplifier noise figure should equal zero, so engineers should aim for this value.

For example, a circuit with an LM358 operational amplifier, whose noise voltage spectral density equals 40 $nV/\sqrt{Hz}$, will have an amplifier noise figure of 30 dB when working with a 100 Ω source. Replace the op-amp with an OP27, whose noise voltage spectral density equals 3.5 $nV/\sqrt{Hz}$, and the noise figure drops to 11 dB. As we will show below, an acceptable noise figure here is less than 3 dB, so neither option is really suitable for this source.

Amplifier Noise Model

Amplifier noise can be easily described with the simple model below which is accurate enough for most practical uses.

The noise voltage source (e_n) adds noise voltage to the useful signal, while the noise current source (i_n) causes a noise voltage crop across the signal source resistance (R_s). The drop also adds to the useful signal the same way e_n does. To calculate the total contribution of both noise sources, add their power values, i.e., calculate their root of sum-of-squares. You can see the equation for the total noise voltage e_a measured in $V/\sqrt{Hz}$ below:

This model enables precise noise prediction and circuit optimization. If you're facing challenges related to processing weak signals due to internal noise, contact Integra Sources for assistance with calculations and prototyping.

Examples of Low-Noise Circuits

Let's circle back to the challenges mentioned in the article introduction and see how to apply the described concepts in real electronics designs. The tasks are to develop a preamplifier for a moving-coil phono cartridge and one for EEG diagnostics. Both examples are drawn from Integra Sources’ actual projects, but here we will use simplified schematics for clarity.

MC Phono Cartridge Preamp

We shall start with analyzing the signal source as the first step. The cartridge coil has very low resistance (around 10 Ω) and outputs a tiny signal (about 500 μV). To identify the required noise performance of the amplifier, we need to take into account that a typical vinyl dynamic range is about 70 dB. In other words, the quietest signals that can be recorded on a vinyl are 70 dB below 500 μV, or roughly 160 nV. Hence, the preamp's noise voltage in the audio band must stay below that.

After dividing 160 nV by the square root of the 20 kHz audio bandwidth, we get 1.1 $nV/\sqrt{Hz}$. This spectral density of noise voltage is sufficient, and it shouldn’t be any higher than that. The spectral density of noise current can be ignored in this particular case due to the low source resistance. Hitting 1.1 $nV/\sqrt{Hz}$ because of noise current alone would require 110 $pA/\sqrt{Hz}$. By comparison, typical noise current spectral density of bipolar op-amps typically range from 0.3 to 2.5 $pA/\sqrt{Hz}$.

Now, let's look at an op-amp-based implementation of the circuit.

We chose the LT1028 op-amp to build this amplifier. It boasts a very low noise voltage of 0.85 $nV/\sqrt{Hz}$, comfortably meeting our 1.1 $nV/\sqrt{Hz}$ target. That said, there's room to optimize the circuit even further.

A discrete preamp circuit design delivers even lower noise. This comes from using ultra-quiet bipolar transistors (Q1 and Q2), that work with high collector currents, in the input stage. Plus, unlike the first circuit, there's no need for an expensive, ultra-low-noise op-amp here. The op-amp (U1) handles signals already boosted by the input stage. The first stage boosts the signal by about 40 times, so the noise contribution of the op-amp decreases by the same factor. The OP27 with 3.5 $nV/\sqrt{Hz}$ used here will contribute about 87 $pV/\sqrt{Hz}$. Even a cheaper and noisier NE5532 would work fine, since spectral densities of noise voltage add as the root of sum-of-squares.

You could also make a simpler discrete circuit by using a single input transistor instead of two. It's cheaper and easier to build, and, what’s more important, it’s quieter. However such a circuit needs around 10,000 μF of capacitance in the feedback loop. 

A few words on noise in bipolar transistors.

Noise voltage in bipolar transistors is shot noise in the collector current, which causes voltage drop across the emitter's dynamic resistance. That means you can get pretty much any reasonable noise voltage level in bipolar transistors just by increasing the collector current. Then why did we pick extremely quiet transistors for this circuit? Bipolar transistors have an important parameter that limits their noise performance—base spreading resistance. The term simply refers to the ohmic resistance of the base region that generates thermal noise. Eventually, pumping more collector current hits diminishing returns, and the transistor's noise is dominated by that base resistance thermal noise.

Bipolar transistors typically have base resistance from tens to a couple hundred Ω. But the ones in this circuit clock in at just 1.7 Ω, letting you increase collector current effectively to cut noise. Here, each transistor runs at 10 mA. For comparison, each transistor in LT1028 runs at 900 μA. Noise current is straightforward: it is tied to base DC current. But beyond the source internal resistance, it also causes voltage drop across the base resistance.

Preamp for EEG Diagnostics

EEG is a niche medical field, and solid public data on signal sources is scarce. That’s why we have to use the source thermal noise with a known resistance to determine the requirements for the signal source and optimize the amplifier's noise figure. 

EEG uses a differential measurement circuit, with each electrode resistance ranging from 1 to 10 kΩ. So, the overall source resistance spans 2 to 20 kΩ. This wide variation stems from natural differences in skin thickness, surface preparation quality, and electrode contact stability. On top of that, we are going to need a low input current amplifier in this application: it's indirectly tied to noise but narrows component choices.

With such high source resistance, amplifier noise current matters a lot. Low source resistance emphasizes noise voltage in the amplifiers' noise figure while high source resistance spotlights noise current. Engineers must strike a balance for all cases, so we mapped the noise figure for the two source resistance extremes.

This lets us nail down recommended preamp noise performance. Here, we chose a maximum allowable noise figure of 3 dB for the amplifier, as this level contributes as much noise as the source resistance itself. For low source resistance, noise voltage dominates. We should keep it under 5.8 $nV/\sqrt{Hz}$ for noise figure below 3 dB. For high source resistance, we can use noise current, which must stay below 0.9 $pA/\sqrt{Hz}$ for the same noise figure of 3 dB. The graph's green zone shows the permissible values region. 

As before, let's first examine an op-amp-based implementation of the circuit.

We selected the OPA2210 op-amp for the circuit. Its bipolar input transistors deliver notably lower noise voltage than FET-based op-amps—2.2 $nV/\sqrt{Hz}$. Low collector current in the input stage, paired with super-beta input transistors, keeps input current to just 300 pA. As a result, the operational amplifier has a tiny noise current of 0.4 $pA/\sqrt{Hz}$.

Here's an interesting detail. If we plug the input current value (300 pA) into the shot noise spectral density formula, we will get 11 $fA/\sqrt{Hz}$. Then why does the datasheet list noise current 36 times higher? The OPA2210 uses a bias current cancellation circuit—the input transistors in the op-amp are biased by the current source that gives them nearly the same current level they need for operation. The uncompensated remnant from process variation is the typical input current, which can even flip polarity.

Note that while this scheme sharply cuts DC input current, it does not reduce the shot noise from that current. In fact, it slightly increases that noise. In other words, one can’t rely on input current value to gauge noise current in op-amp-based circuits.

The circuit delivers solid noise performance for this application. The total noise voltage is 3.3 $nV/\sqrt{Hz}$, and noise current is 0.4 $pA/\sqrt{Hz}$. It's good enough, but we can do even better.

Once again, the discrete circuit preamp design outperforms. This is mainly because  the op-amp version needs two differential stages—one stage inside each op-amp—while the discrete one manages with just one. Fewer input components create less noise.

We picked the LSK389 for the input stage. It’s a matched low-noise pair of junction field-effect transistors (JFET). Each delivers 1.3 $nV/\sqrt{Hz}$ noise voltage density. Noise current is negligible: JFET gate input current doesn’t exceed tens of pA, making the corresponding noise current irrelevant for the given source resistances.

A quick note on JFET noise sources: noise voltage stems from channel resistance thermal noise, while noise current is caused by gate leakage current. A powerful transistor generates less noise voltage; lower gate leakage causes less noise current. 

In-House Component Measurements

Before wrapping up, we’d like to share results from internal noise measurements on some components we did in-house. 

Let’s start with the graph of noise voltage versus frequency for bipolar transistors. Collector current was 20 mA during measurements. We can single out two groups here.

The first (bottom seven traces) includes medium- and high-power transistors, most of which are switching type. They were often used in switching regulators back in the day.

They feature low white noise levels thanks to low base spreading resistance. For instance, the quietest here, the 2SC2335, only has 0.2 Ω. But these transistors rarely offer high beta, which is only 25 here. An “amplifier” based on such a device would have too high base current, spiking noise current. There are more interesting compromises, like the FZT851 we saw earlier with beta of around 200 and base spreading resistance of 1.7 Ω, or the 2SC5707 (350 and 2.4 Ω) and 2SC5888 (390 and 3.6 Ω).

The second group (top three lines) comprises low-power transistors. They show mediocre white and 1/f noise but often decent beta. One particularly interesting component is the 2SC1815 from Toshiba designed for audio systems. Its datasheet lists typical base spreading resistance at 50 Ω, and our measurements prove it: the sample hit 53 Ω.

We also measured base current noise for the FZT851. Collector current was 6 mA, while base current was 30 μA during measurement.

Notice how high frequency-wise the corner frequency sits—around 500-600 Hz. That's typical for bipolar transistor noise current, and you'll see the same in bipolar op-amps. 

We did a bit more testing of FET transistors we had in our office. Only the BF245 and LSK389 mentioned above can qualify as quiet. There’s also a fake 2SK170 with high white noise but a decent corner frequency for a JFET. The rest barely suit low-noise electronics design. As for the MOSFET, its corner frequency is way beyond audio band. As you can see, even quiet JFETs have their corner frequency even higher than bipolars.

Finally, let’s take a closer look at 1/f noise in a thick-film SMD resistor. Thick-film resistors suffer from very high flicker noise. The graph below shows noise voltage for an amplifier based on the LSK389 JFET:

The red graph shows the performance of a transistor with thick-film resistors in the drains. The blue graph shows the cheapest metal-film through-hole resistors with a tolerance of 5%. The difference is on the outside. Note that these resistors' noise impact is decreased by about 10 times since they're in the drains of the input transistors. Yet it still strongly impacts the overall circuit noise. So, engineers should stick to thin-film, metal-film, or foil resistors when designing low-noise hardware. 

Conclusion

When designing low-noise electronics, the key task is to achieve the required quality of the useful signal while minimizing the internal noise of the amplifier for a given signal source. In some cases, noise voltage is the dominant factor, in others it is noise current or both these parameters at the same time.

To succeed, it is essential to understand the nature of thermal, shot, and flicker noise, to know how to work with signal-to-noise ratio and amplifier noise figure, and to choose appropriate architectures and components. What counts as “low-noise” will differ between applications: in some projects, op-amps with noise voltage of 10 $nV/\sqrt{Hz}$ are acceptable, while others projects may require no more than 1 $nV/\sqrt{Hz}$. By taking these and other factors into account, engineers can design a circuit that does not drown out a weak signal with its own noise and remains practical to implement in a specific project.

Integra Sources has extensive experience developing not only low-noise electronics but also hardware and software for medical and industrial equipment, agricultural solutions, oil and gas hardware, and more. Contact us if you’d like to receive an expert consultation on your project.

Pre-Project Preparation Stages

Pre-project preparation is a flexible process depending on the specifics, size, and complexity of the project. Some stages may be skipped, merged, or run in parallel. 

Usually, pre-project preparation consists of the following steps:

• Product concept analysis 

Before beginning the development of an electronic device or software, the potential client typically conducts market research, analyzes competing solutions, and identifies strengths and weaknesses. Activities required at this step also include defining the target audience, user needs, and expectations. Usually, clients approach us with a clear vision of the product and a concept that outlines the unique features and advantages of the planned solution.

Skipping this stage is not advisable. Otherwise you may end up wasting time and money trying to develop something that is unfeasible, lacks demand, or has long been available in multiple variations on the market.

During our initial contact with the client, we clarify technical details, desired timelines, and budget. From the client’s responses, it quickly becomes apparent whether they have conducted any preliminary market research and if they have a clear understanding of how the device or software is intended to function, what the project budget will be, or what trade-offs might be required. Understanding the nature of the project and the organization is crucial for effective project planning and implementation. 

We do our best to assess the idea's value and the product’s competitiveness. For example, consider a raw idea with uncertain prospects: a client requested a tiny device that attaches to a lipstick or mascara cap. The device would function as a timer and notify the user when the cosmetics have expired. The client liked the idea but had not conducted any market research. Our team was skeptical about both the project concept and its feasibility. Consequently, the project did not move forward.

Another example is when the timeline or budget is unrealistic. Developing a large-scale project, such as a battery management system with a capacity of several megawatts, cannot be completed in just a few months with a budget of a few thousand dollars. If a client insists on unrealistic deadlines and budgets, productive dialogue is unlikely to happen.

• Nondisclosure agreement (NDA)

A typical contract for electronics or software development includes confidentiality clauses, but upon request, an NDA can be signed even before the main agreement. The company undertakes not to use or share project details (ideas, technical solutions, commercial info, etc.) obtained during negotiations.

• Schedule and budget planning 

It is essential to identify and allocate financial resources and other resources early in the process to ensure the project plan is realistic and achievable. Accurate estimation is equally important for both the client and the development team. The client needs to plan their budget and timeline, as funding sources are always limited, so they want to know the actual cost of the development and how long the work will take. Naturally, they also expect reassurance that the finished product will be delivered on schedule. 

When evaluating a project, developers allocate tasks and workload for each team member. Any mistake in these early estimates may result in staff shortages, rushed work, and eventual errors.

We usually provide a rough initial estimate to the client during the very first calls. This typically includes a range for both the number of man-hours and the potential cost, as well as an expected timeframe—though not tied to specific dates. For smaller or standard projects, this range is narrow, such as 500–550 man-hours. Larger projects or new, unfamiliar tasks come with a broader estimate, as additional time is built in for risks and uncertainties that always accompany extensive undertakings.

The first estimate is based on our experience with similar projects. Once the client agrees with this range, the project team prepares a detailed, precise calculation.

In rare cases, it is possible to estimate a software project without a formal technical specification. This can be done if there is already a detailed program description or an existing similar application to reference.

• Gathering requirements and developing Technical Specification

At this stage, it is important to identify and determine project goals, requirements, and potential risks to ensure the project is set up for success. There are several ways to organize this process. The client may choose to prepare the technical specification independently, detailing the product’s functional and non-functional requirements, any preferred components, certification needs, and other specifics. On our side, we are always ready to help refine and expand this document, offering optimal technical solutions based on the project’s requirements.

Alternatively, the client might just have a general product concept or a physical prototype. In that case, we create the technical specification from scratch, define the set of technologies and tools to be used, identify the key project milestones, finalize all details together, and send it to the client’s email. When the document is approved, we move on to development.

This approach, however, isn’t suitable for every project. For instance, when developing a medical device, engineers rely on the client to provide a detailed specification outlining all features and performance parameters.

A comprehensive technical specification significantly speeds up project initiation. Still, we understand that not every client can outline all the details from the beginning, so we are willing to start even with broad conceptual ideas. 

For example, one of our clients had been manufacturing and selling hot tubs for many years but had no expertise in electronic system design. They approached us with the idea of automating tub control but had no clear vision of how it should be implemented.

We suggested developing a controller and a mobile app to let users manage their hydromassage baths and adjust settings directly from their phones. The project took longer than if the client had come to us with a detailed technical specification, but this approach turned out to be the most effective—it simply wasn’t possible for them to prepare such documentation on their own.

For us, the project was an exciting challenge too. It allowed our team to dive deep into the details and carry out a comprehensive study. Later, when another client requested our technical assistance with a similar solution, we already had the experience to recommend the best components—an optimal microcontroller and other parts with a great balance of performance and cost. We also helped refine the design by suggesting the removal of unnecessary, expensive features that didn’t add real value.

So, what does a solid technical specification usually include?

• Functional requirements, areas of application, and how the device differs from existing solutions
• Non-functional parameters such as the power source, data transfer methods, and peripherals
• Operating conditions like temperature, humidity, and pressure
• Typical usage scenarios
• Overall architecture
• Certification standards

A full technical specification, which later becomes the foundation of the project documentation, may also contain detailed estimates for each stage in man-hours, a production schedule, risk assessments, and a clear list of deliverables.

Creating a technical specification is always a shared journey. You bring your ideas, and we help organize them, add the necessary technical depth, and turn vision into a real, structured plan.

• Preparing the commercial proposal

When a project is large or complex, we prepare a commercial proposal tailored to the client's needs. Sometimes, it’s just a simple one-page overview that highlights the key points about the development process. Other times, it’s a detailed document filled with excerpts from the technical specification, cost estimates, project timelines, information about our company, the team members who will be working with you, and examples of similar projects we’ve successfully completed. Also, responsibilities must be clearly assigned and the responsible parties determined for each stage of the project to ensure accountability and success.

• Building the team

While we’re working on the technical specification, we’re also putting together the perfect team to ensure the project progresses at an acceptable pace. This team might include one or several developers, a tester, an analyst, a project manager, and maybe some other experts—everyone with deep knowledge in their specialty. The total number of developers depends on how complex the project is. Large-scale work also requires more people. Thanks to our specialists’ experience and skills, we can promise you a high-quality outcome and smooth, efficient project delivery.

• Research

Often, clients come to us wanting a reality check—a second opinion on whether their idea will actually work. Sometimes, an idea can be very exciting but hard to judge its feasibility without digging deeper. In these situations, we step in with a pre-project study to explore the idea, assess its chances, and find the best way forward—before any actual development begins.

We also do research when a project involves updating an existing device or replicating a sample. For instance, once a client brought us a prototype of a capacitive keyboard. Our job was to build a solution that matches its performance. We started by thoroughly studying the sample, brainstorming various design options, and selecting the components that would deliver the best balance of quality and cost.

After completing our research, we prepare a detailed report that outlines one or more possible paths for the project. The client then decides which direction to take.

Some projects—especially complex or large-scale ones—require much more time for in-depth analysis. For example, it took us several weeks to fully explore the development of a battery management system (BMS) that became part of a large battery energy storage system (BESS). Although the client provided detailed project documentation, the scope of the work was massive. It took a month just to prepare, and the actual development lasted several years. The end result was a system comparable in power to an average hydroelectric plant.

Why Pre-Project Preparation Matters

Pre-project preparation is what sets a successful project apart from one that runs into problems later. Here’s why it’s so important:

• It gives everyone a clear understanding of the goals and vision. With well-defined requirements, the team can focus on what truly matters and provide corresponding technical support instead of chasing unclear details.
• A thorough technical specification helps us choose the right technologies—hardware components, frameworks, libraries, and programming tools—that will make the product both stable and powerful.
• The resulting specification becomes the foundation for quality control at every development stage.
• Clear requirements enable accurate scheduling and budgeting, minimizing the risk of exceeding estimates.
• The more thoroughly a project is planned from the start, the lower the risk of encountering serious issues or costly revisions later.
• Clear tasks and a transparent roadmap keep the team motivated and productive.

Effective project preparation involves thorough planning, risk assessment, and resource organization to ensure project success. It is, in essence, an investment in success. It minimizes risks, optimizes development, and ensures the final product truly meets the client’s expectations. Documents such as project plans, risk assessments, and deliverables are essential for electronics design projects, ensuring that all requirements and processes are clearly defined and tracked throughout the project lifecycle.

We devote great attention to this stage because careful preparation leads to better results. Whether you’re looking for custom electronics or software development, a technical consultation, or an expert review of an existing project, we’re always ready to help you bring your idea to life with confidence.

Modern temperature monitoring technologies play a key role in various fields, including the energy sector, oil and gas industry, construction, and environmental monitoring. A range of solutions can be applied depending on the specific requirements of each task: infrared and digital thermometers, thermal imaging cameras, etc. If you need consultation on this matter, please contact our team. We will offer the most optimal solution tailored to the specific needs of your enterprise.

One of the most promising temperature measuring methods is distributed temperature sensing (DTS). This technology enables high-precision and continuous temperature monitoring along the length of fiber optic cables, making it indispensable for real-time monitoring of infrastructure health and processes.

Important components of DTS systems are avalanche photodiodes (APDs). These devices provide high sensitivity and fast response to temperature changes. They can efficiently convert optical signals into electrical signals, providing accurate temperature data collected over distances of 30 kilometers or more. 

In this article, we are going to compare various avalanche photodiodes used in DTS solutions. 

What are Avalanche Photodiodes?

There are two main types of devices used for converting light into electrical signals: PIN photodiodes and avalanche photodiodes. They have different structures and operating principles.

Avalanche photodiodes (APDs) are semiconductor devices that convert light into electrical signals through the photoelectric effect. They can be considered as highly sensitive photodetectors.

These devices have greater sensitivity compared to other semiconductor photodetectors, which allows them to be used for detecting low luminosity levels (≲ 1 nW).

The main advantages of avalanche photodiodes compared to PIN photodiodes are:

• High sensitivity
• Low noise levels
• Short response time
• Wide bandwidth

The latter manifests itself as the ability to register waves ranging from 400 to 1700 nm, which exceeds the capabilities of PIN photodiodes. For comparison, silicon PIN diodes operate in the range of 400 to 1100 nm, covering the visible and near-infrared spectrum. Germanium and gallium-indium-arsenide PIN photodiodes have ranges of 800-1600 nm and 1000-1650 nm, respectively.

The reaction time of APDs is limited by the charge carrier transit time and the RC time constant. The reaction time of avalanche diodes is about several tenths of a nanosecond. In some cases, it can be reduced to less than 100 picoseconds, which is several times shorter compared to standard PIN diodes.

The higher the reaction speed, the greater the spatial resolution of the diode. In the case of thermometry systems, this allows sensors to detect local overheating that exceeds acceptable limits. Low-speed photodiodes (that have lower resolution) either register insignificant deviations over relatively long sections or do not register temperature changes at all. As a result, dangerous temperature rises or even fires may be detected too late.

These features of avalanche photodiodes are crucial for the energy sector, oil and gas industry, chemical industry, aviation, and other fields. DTS systems are used for temperature monitoring in high-voltage transformers and power lines, in oil and gas wells, during chemical processes, and for tracking temperature deformations in aircraft bodies.

Key Characteristics of Avalanche Photodiodes 

Photodetectors are installed in control and measurement equipment, fiber-optic communication line sensors, and cable television systems. They are used for monitoring systems and analyzing polarization.

When it comes to avalanche photodiodes in distributed temperature sensing systems, it is crucial for them to provide a rapid response to changes in the received optical power. The next paragraphs briefly describe the operating principle of this system and explain what parameters are most important for this type of measurement equipment.

Temperature is recorded along the optical line of the sensor, i.e., it is measured continuously rather than at discrete points. Typically, DTS systems can measure temperature with a spatial resolution of 1 meter and an accuracy of ±1°C. Measurements can be taken over distances exceeding 30 km, and some specialized systems can provide even more precise spatial resolutions. Thermal changes along the optical fiber cause local variations in the refraction index, which in turn leads to inelastic scattering of the light traveling through it.

The measurement principle is based on the Raman effect. Chandrasekhara Venkata Raman was an Indian physicist specializing in optics and acoustics. During his journey from London to India, he became interested in why the Mediterranean Sea appears blue. At that time, it was believed that water simply reflects the color of the sky. However, this explanation did not satisfy Raman. Later, he conducted experiments that showed that when light hits the molecules of a substance, most of the light is scattered without changing its wavelength. This is known as Rayleigh scattering. However, a small portion of the light is scattered with a change in wavelength, which is related to the vibrations of the substance's molecules. This phenomenon was named the Raman effect. The scientist was awarded the Nobel Prize in Physics in 1930 for this discovery. Today, the Raman effect is used for chemical analysis, studying the composition and structure of substances, as well as in DTS systems.

Due to heating or cooling, the physical dimensions of the fiber change, which causes local changes in the light transmittance characteristics. As a result of light extinction in quartz glass fiber due to dispersion, it is possible to determine the location of an external physical effect, allowing the optical fiber to be used as a linear sensor.

Optical fiber is made from doped quartz glass, which is a form of silicon dioxide (SiO2) with an amorphous solid structure. Thermal effects cause lattice vibrations within the solid body. When light falls on these thermally excited molecular vibrations, photons and the electrons of the molecules interact. This causes light dispersion in the optical fiber, also known as combinational scattering or Raman scattering. Unlike the incident light, this scattered light experiences a spectral shift equivalent to the resonance frequency of the lattice vibrations. The light scattered back from the optical fiber contains three distinct spectral components:

• Rayleigh scattering of the same wavelength as that of the laser source;
• Stokes line components from photons are shifted towards longer wavelengths (lower frequencies);
• Anti-Stokes line components, with photons shifted towards shorter wavelengths (higher frequencies) than Rayleigh scattering.

The distribution of wavelengths for anti-Stokes and Stokes Raman scattering

Temperature has a strong influence on the intensity of the so-called anti-Stokes band, while the characteristics of the so-called Stokes band are not affected by temperature. Thus, it is possible to calculate the local temperature of the optical fiber from the ratio of anti-Stokes and Stokes light.

For accurate measurements, the system requires photodiodes to operate in the range of 1440-1700 nm. 

There are two main types of avalanche photodiodes: those based on germanium and those based on gallium arsenide. 

• The first type is made from germanium. It can “see” infrared radiation well (wavelengths up to 1.7 µm) but operates with some noise. 
• The second type is made from gallium arsenide. It can detect slightly further into the infrared spectrum (up to 1.8 µm) and operates more cleanly, with less interference. 

Modern versions of gallium arsenide detectors are made multilayered, with the addition of other materials to enhance their characteristics. They typically have indium phosphide as a substrate and a second layer to create a heterostructure. Indium gallium arsenide (InGaAs) has a high absorption coefficient at the wavelengths commonly used in fiber optic communication lines. Therefore, even micron-thick layers of InGaAs are sufficient for complete absorption of the radiation.

These materials provide low latency and noise levels and can be used to create devices with a bandwidth of over 100 GHz (in the case of simple InP/InGaAs systems) or up to 400 GHz (in the case of InGaAs in a silicon-based heterostructure). Thus, the data transmission speed of such devices can exceed 10 Gbps.

Another important characteristic of distributed sensors is spatial resolution, i.e., their ability to distinguish the value of the measured quantity at closely spaced points.

Typically, a distributed sensor responds to an abrupt change in the measurand (temperature) along the fiber with some blurring of that edge in its output. The figure below illustrates the difference between the actual measured quantity (solid line) and that detected by the sensor (dashed line). The spatial resolution δz is usually defined as the distance over which the sensor output corresponds to a sharp transition from 10% to 90% of the fiber optic temperature value.

These values (10%–90%) are appropriate for determining the degree to which a transition is reproduced by the sensor.

Method for measuring spatial resolution in distributed sensors

When selecting photodiodes for DTS systems, one should also consider other parameters: market availability, bandwidth, the dependence of output signal parameters on the photodiode's own temperature, etc. However, the most important parameters of APDs are the response speed and, consequently, the spatial resolution.

Testing avalanche photodiodes

In electronics design, we often resort to testing various components or concepts. This is necessary to assess their functionality and identify potential problems at early stages, when it is difficult to tell if the chosen approach is effective. The Integra Sources engineers are ready to assist in assessing the feasibility of your concept and selecting the optimal technical solution.

The following setup was used for testing various avalanche photodiodes:

The schematic diagram of the APD testing setup. O-Scope is the digital oscilloscope; thermal chamber 1 contains replaceable boards with photodiodes under test; PL is the pulsed laser; RF is the Raman filter; sections 1, 2, 4, 5, 6, and 7 are optical fiber segments of 100 m each; section 3 is optical fiber of 8000 m in length; thermocouple 1, 2 are reference thermocouples.

Table 1 contains the list of photodiodes under test. To ensure the reliability of the results, the team tested five pairs of samples of each model.

Light pulses in the optical fiber were generated using a pulsed laser. Pulses with a wavelength of 1550 nm and a duration of 1 nanosecond were used in the testing.

Before conducting the experiment, thermal chambers 2 and 3 were turned on and maintained the specified temperatures (+45℃ and +70℃, respectively) for an extended period. The thermal chamber 1 housing the photodetector board maintained a temperature of +25℃ for 30 minutes prior to tests to establish proper operating conditions.

Due to the Raman effect, light in the optical fiber undergoes stimulated backscattering. The Raman filter separates the spectrum of the reflected light into Stokes and anti-Stokes bands, which are registered by a pair of photodiodes. The signal from the photodiodes is amplified by several stages using operational amplifiers. The output signal from the operational amplifiers goes to the oscilloscope.

During testing, the team measured the transition time of the electrical signal from 10% to 90% of the transition signal value. This time was then converted into the spatial resolution of the sensor. Temperature resolution was measured as the minimum change in fiber optic temperature that results in a change in the sensor output value. This data was then used to calculate the standard deviation of the measured temperature. We used averaging times of 10, 60, and 600 seconds for measurements.

Table 2 contains the comparison of the temperature resolutions of the APDs under test at lengths of 1 km and 8 km.

We also calculated the spatial resolution of the APDs. The results are shown in the following table.

Lastly, the team calculated the standard deviation of the measured temperature for the tested photodiodes at lengths of 8 km and 1 km for 600 and 60 seconds:

During testing, the most optimal results were shown by the APD-10-LC InGaAs photodiode. It has the best spatial resolution and good temperature resolution. Additionally, the manufacturer provides a precise bias voltage value in the datasheet for the device, which makes it unnecessary to select bias voltage manually and minimizes the risk of damaging the component.

Conclusion 

Distributed temperature sensing systems can detect overheating in a timely manner and prevent accidents, which is critical for ensuring safety in industrial facilities. Automated temperature monitoring enhances equipment efficiency and reduces maintenance costs. Accurate temperature measurements help maintain optimal production conditions, which affects the quality of the final product. Lastly, fiber-optic sensors are resistant to external factors, particularly to electromagnetic radiation, which increases the lifespan of monitoring systems.

Important components of DTS systems are avalanche photodiodes (APDs). These are highly sensitive semiconductor devices that convert light into electrical signals through the photoelectric effect. Key parameters of avalanche photodiodes used in DTS systems include a fast response to changes in received optical power and spatial resolution. The tests of various models have shown that the APD-10-LC InGaAs photodiodes perform best in DTS systems. 

The Integra Sources team has extensive experience in designing modern solutions for a wide variety of industries. We can help you develop electronics and software for consumer devices, medical equipment, agricultural machinery, industrial solutions, the oil and gas industry, logistics, and more. Contact us, and we will answer any questions.

Our team specializes in developing embedded electronics and software. After you contact Integra Sources, we study your project, develop the product, test it, and hand over the design documents to you. Your next move is to organize mass manufacturing. Companies that don’t own manufacturing facilities outsource this task to EMS providers, including those located abroad. In the first part of this post, we talked about China, Taiwan, the U.S., and Mexico as potential locations for electronics production. Now, we would like to discuss Thailand, Vietnam, Malaysia, and India.

Malaysia

Benefits

• Advanced E&E industry

The country is one of the key global players in the electrical and electronic industry, which makes it one of the best countries for electronics manufacturing. In September 2023, E&E products accounted for 43.7% of its total exports. Malaysian manufacturers produce passive components, PCBs, consumer electronics, and industrial equipment. Additionally, corporations such as Intel and AMD started operating in Malaysia in the 1970-80s, so there’s no lack of highly skilled professionals specializing in electronics. 

• Low labor costs

Factory and manufacturing average salaries in Malaysia are lower than in Thailand.

• Business-friendly environment and no export taxes

The country ranks 12^th in the World Bank’s 2020 Doing Business Report. The government has introduced many initiatives to boost Malaysia’s electronics production industry. On top of that, almost all goods have zero export duties except for the country’s main commodities: petroleum, crude oil, and palm oil. You can see the rates in the Customs Duties Order 2022.

Challenges

• Limited capacity

Like other small countries, Malaysia has a limited labor pool, which makes it challenging to launch large-scale production there.

• Import dependence

Malaysia’s electronics production is highly dependent on imports of machinery and raw materials from other countries, which may become a problem if the political situation in the region escalates.

Some of the Top EMS Providers in Vietnam:

• Asia Printed Circuit Sdn. Bhd.
• LKL Sunrise Electronics(M) Sdn Bhd.
• RONNIE ELECTRONICS
• BCM Electronics Corporation Sdn. Bhd.
• VISION
• Supreme PCB Solutions. Sdn. Bhd.
• AR Dynamic Technology Sdn. Bhd.
• Inovus Technology
• Silvtronics
• Qdos Tech

Export Regulation in Malaysia

Malaysia’s main laws governing export operations are:

• The Strategic Trade Act 2010 and the Strategic Trade (Amendment) Act 2017
• The Customs Act 1967 (CA) and the Customs (Prohibition of Exports) Order 2017 (CPEO)

The Customs (Prohibition of Exports) Order 2017 divides goods into three categories:

1. Goods prohibited for export (First Schedule).

2. Goods that require an export license (Second Schedule).

3. Goods subject to export prohibition, except in the manner provided in the Schedule and when export is allowed under the International Trade in Endangered Species Act 2008 (Third Schedule). 

These goods include turtle eggs, certain chemicals, minerals, ores, military equipment, wild animals, plants, certain foods, etc.

Additionally, the Restricted and Prohibited End-Users Order controls the export of goods to certain countries, entities, and individuals. The prohibited end-users include various individuals and enterprises in North Korea and Iran. The restricted end-users include North Korea, Iran, Congo, Ivory Coast, Lebanon, Sudan, Libya, Afghanistan, Iraq, Liberia, Rwanda, Somalia, and Eritrea.

Thailand

Benefits

• Electronics manufacturing hub

Thailand has become an important player in the regional electronics industry. The nation exports semiconductors, consumer devices, and automotive electronics. LG, Samsung, Intel, and other global electronics companies have established manufacturing there.

• Strategic location

Due to its proximity to key electronics markets in China, South Korea, India, Taiwan, and Japan, the country has become an attractive hub for electronics production. Being in the heart of the region makes it possible to distribute locally produced goods to both regional and global markets.

• Skilled workforce

Thailand’s electronics production enterprises have access to well-trained workers, particularly in electronics, due to a sound education system.

• Competitive costs

The factory and manufacturing average salaries in Thailand are lower than in China: $1,878 against $2,840. This and other factors make manufacturing here cheaper than in many other locations. As for quality, many Thai manufacturers have ISO, UL, and other certifications, so their goods meet international standards.

• Ease of doing business

According to the 2020 Doing Business report, Thailand ranks 21st in terms of business-friendliness globally, ahead of China, Japan, India, and Vietnam. This is largely due to the governmental support of the electronics industry, whose incentives encourage investments and growth in the sector. 

Challenges

• Limited capacity

Just like Taiwan, Thailand cannot compare to China in terms of production capacity. Therefore, it would most likely be difficult to set up large-scale manufacturing there.

• Import dependency

Like many other locations, Thailand’s electronics production is highly dependent on the import of components.

• Climate instability

From time to time, the country suffers from Monsoon flooding that hits all local industries. Back in 2011, one of such floods paralyzed the local manufacturers of car parts and PC hard drives.

Some of the Top EMS Providers in Thailand:

• Circuit Industries Co., Ltd.
• Apex Circuit
• Bluechips Microhouse Co., Ltd.
• Draco PCB Public Company Limited
• Fabrinet
• KCE Group
• Amallion Enterprise 
• Asteelflash
• Autech Thailand
• Kinpo Electronics

Export Regulations in Thailand

The country’s main governing legislation for international trade is the Export and Import Act B.E. 2522 (1979). The Ministry of Commerce can specify goods to be prohibited or restricted for export and import. 

Currently, there are about 50 goods that are not allowed to be exported from Thailand, but this list often changes. Goods prohibited for export include natural sand and intellectual property-infringing goods, pornographic materials, narcotics, counterfeit goods, and others.

As for high-tech items, the authorities restrict the manufacturing and export of medical instruments and radio communication equipment.

Note that the Medical Instrument Act B.E. 2551 (2008) gives a very broad definition of “medical instruments” that includes, among other things, machinery, software, accessories, and components intended for medical use. The manufacturer of such goods must obtain a license to export them and comply with the Notification of the Medical Instrument Commission Re: Rules, Procedures, and Conditions for Manufacturing Medical Instrument for Export B.E. 2552 (2009) and the Notification of the Ministry of Public Health dated June 17, 2552 (2009) Re: Rules, Procedures, and Conditions for Making a Record and Report of Manufacture, Import, and Sale of Medical Instruments.

The export and import of radio communications equipment are controlled under the Radio Communications Act B.E. 2498 (1955) and the Notification of the National Broadcasting and Telecommunications Commission Re: Export of Radio Communications Equipment dated March 15, 2011. Exporters of such equipment or their parts must obtain a license and comply with the Radio Communications Act.

Vietnam

Benefits

• Low labor costs

The cost of labor in Vietnam is almost six times lower than in China, making it a very competitive location for manufacturing labor-intensive goods. 

• Convenient geographic location

Vietnam’s electronics manufacturing industry benefits from its proximity to China, the key exporter of the necessary components. Also, its long Pacific coastline is well suited for fast international shipping. 

Challenges

• Lack of qualified workforce

Although the country is definitely considered one of the alternatives to China, Vietnam’s electronics manufacturing is still emerging. One particular problem is the shortage of skilled specialists, especially in such complex industries as electronics. The government is investing heavily in education, but the issue will not be resolved quickly. As of now, most electronics manufacturers in Vietnam provide low-value-added assembly and testing.

• Poor supply chain infrastructure

Although Vietnam is also investing in infrastructure, it remains mostly underdeveloped when compared to China. In the Connecting to Compete 2023 Report, the country ranked 43^rd, behind India, Thailand, Turkey, and other economies.

• Import dependency

Vietnam heavily relies on component suppliers from China, South Korea, and Japan.

• Low manufacturing capacity

Finding manufacturers in Vietnam capable of producing electronics in large quantities or scaling your current production is not an easy task. Overall, Vietnam is more suited for low-scale manufacturing of simple devices or even low-value-added assembly rather than producing advanced electronics. 

Some of the Top EMS Providers in Vietnam:

• Jing Gong Electronics Vietnam Co., Ltd.
• THANH LONG
• Vector Fabrication (Viet Nam) Co., Ltd.
• Fab 9
• Sunching Electronics Vietnam
• SAOKIM
• Trungnam EMS
• VEXOS
• Sao Kim Electronics
• TRUNG NAM EMS

Export Regulations in Vietnam

As per Appendix III of Decree 69/2018/ND-CP, certain goods require trading companies to obtain export permits from the government. They include certain chemicals, minerals, industrial explosives, explosive pre-substances, certain animals and plants, aquatic species, medicines, medical equipment, raw gold, goods subject to export control in accordance with international treaties to which Vietnam is a contracting party, and more.

Note that according to Circular 34/2013/TT-BCT, foreign-invested enterprises may not export most of these goods from Vietnam.

Appendix I of Decree 69/2018/ND-CP prohibits the export of the following goods:

• Weapons, ammunition, explosives, military technical equipment.
• Encrypted products used for protecting state secrets.
• White and black rhinoceros, African elephants, and certain other animals, aquatic species, and livestock.
• Certain chemicals.

India

As the cost of labor in China is growing, companies are seeking new destinations for electronics manufacturing. Many businesses see India as the next manufacturing powerhouse, with the potential to rival China in the future.

Benefits

• Huge population

India’s population accounts for 1.4 billion people, which means two things. First, India has a huge labor force to offer (over 523,000). Second, just like China, India can serve as both a location for contract manufacturing and a target market, which is an important factor to consider. 

• Cheap labor

India has one of the lowest labor cost indicators in the world ($269 in the manufacturing industry, according to salaryexplorer.com), so it’s not surprising India’s electronics production is on the rise. 

• Government policy

While previously the government discouraged foreign direct investment, now the country is open for investments under its “Make in India” campaign. Companies, including Apple, have already moved some of their production to India.

Challenges

Although India has great potential, the country still has many issues that should be taken into account.

• Low productivity and quality

India’s GDP per hour worked is almost twice as low ($8) than China’s indicator ($15). The country lacks a highly skilled workforce, which affects the quality of local goods. India’s electronics production lags in production planning, supply chain management, quality, and maintenance. Additionally, the country’s manufacturing sector lacks organization and regulation.

• Poor infrastructure

According to the World Bank’s Connecting to Compete 2023 Report, India occupies the 38^th position with an LPI score of 3.4. For comparison, China ranked 19^th with an LPI score of 3.7. 

• Import dependency

India is heavily dependent on the import of electronic components from China and South Korea. However, the government intends to fix it by investing in the semiconductor and display ecosystems. 

Some of the Top EMS Providers in India:

• Anand Electronics & Industries Ltd.
• AS&R Circuits India Pvt. Ltd.
• Circuit Systems India Ltd.
• CIPSA-TEC India Pvt. Ltd.
• Shogini Technoarts Pvt. Ltd.
• Ascent Circuits Pvt. Ltd.
• Fine-Line Circuits Ltd.
• Genus Electrotech Ltd.
• AT&S India Pvt. Ltd.
• Epitome Components Ltd.

Export Regulations in India

Schedule 2 of the Indian Trade Classification (Harmonized System) of Export and Import Items (or simply Schedule 2 of ITC (HS)) imposes a number of export restrictions. The list includes Special Chemicals, Organisms, Materials, Equipments & Technologies (SCOMET) that require an export license and compliance with certain conditions. For SCOMET items, such conditions also include compliance with Weapons of Mass Destruction and their Delivery System (Prohibition of Unlawful Activities) Act 2005. Among other things, this document lists electronics, computers, telecommunications, information security, sensors, and lasers.

The Foreign Trade Policy 2015-2020 also restricts the export of certain goods to Iraq, Daesh, North Korea, Iran, and Somalia.

Conclusion

China and Taiwan are among the best countries for electronics manufacturing. But as the political tension in the region keeps growing, businesses are looking for alternatives.

Malaysia has been a strong player for many years. Thailand is a large electronics exporter too. Vietnam can’t offer the same level of quality but may be a good choice for the labor-intensive production of relatively simple products. India, despite being an emerging electronics exporter, has huge potential due to its population and government initiatives. Analysts expect the country to replace China as the next manufacturing powerhouse.

If your project is yet to be developed, contact Integra Sources. We specialize in IoT solutions, robotics, power electronics, and FPGA design and have certain experience in building medical devices, computer vision systems, and more. On top of that, Integra Sources has long-lasting relationships with several manufacturers whom we would gladly recommend.

As an embedded electronics design company, we take someone else’s ideas, study them, and create new solutions. If you have a concept of a device or software, contact Integra Sources to turn it into a real product. However, after the product is tested, your next move is to organize mass manufacturing. In this post, we are going to take a closer look at the following locations, study their pros and cons and their export regulations, and mention some of the top local EMS providers.

China

Since China remains the world’s largest electronics powerhouse, it totally makes sense to consider it your number one option. 

Benefits

• Low production costs

China’s electronics manufacturing was initially boosted by very cheap labor. It motivated many companies to move their manufacturing to this country a few decades ago. By now, the country’s cost of labor has risen and is closer to the middle of the spectrum. Nevertheless, according to salaryexplorer.com, factory and manufacturing average salaries in China remain about two times lower than in the U.S. – $2,840 against $5,508. 

Another factor influencing the production cost in China is the country’s low power rates for enterprises – $0.09 per kilowatt-hour as of June 2023, according to GlobalPetrolPrices. Compare it to the rates in the U.S. ($0.147).

• Developed infrastructure and cheap resources

China has an extensive railway and port network, roads, and airports, and the government continues to invest in the infrastructure. Also, manufacturers in China hold the advantage of sourcing local active and passive components, rare-earth metals, acids, solvents, copper, tin, gold, and more.

• Output capacity

Factories in developed countries often have limited capacity, while Chinese manufacturers can almost always find the staff for your order and easily scale up the production.

• Big domestic market

China’s electronics manufacturing enterprises have easy access to the country’s huge market, with millions of potential buyers. So, unless you are targeting purely your local market, you should definitely take this possibility into account. 

Challenges

• Quality/reputational issues

Many people are used to seeing Chinese goods as trash that won’t last long. Although nowadays, many factories in China manufacture products of decent quality, one should still consider whether the “Made in China” label can prejudice potential buyers against the product.

• Intellectual property protection

Chinese manufacturers are notorious for copying customers’ designs. That’s why one needs to develop protection against reverse engineering. As for your custom firmware, we recommend using test firmware during production because it does not contain any business logic. Lastly, different parts of the device can be manufactured at different locations, but this will complicate the logistics.

• Complex logistics

When a product is shipped from China to Europe or North America, its landed cost is usually cheaper than that of domestic goods. But delivery may take up to several months, while delays will prove costlier. 

• Minimum orders

Large Chinese factories are interested in high-volume orders and may refuse to take small-batch orders. On the other hand, there are always small factories that will gladly cooperate. 

• Export to the U.S.

Those who want to produce electronics in China but sell them in the U.S. must take into account the Section 301 China Tariffs implemented in 2018. These tariffs apply to a huge list of products, including electronic appliances. So, if your product falls within one of the four lists of the China Section 301-Tariff Actions, you will have to pay the standard and additional import duty.

In 2024, the U.S. government increased the tariffs on many goods in the list from 25% to up to 100%. The tariffs on semiconductors will rise from 25% to 50% by 2025. The rates on lithium-ion batteries will increase from 7.5%% to 25%.The tariffs on solar cells will rise from 25% to 50%.

Note, however, that in December 2023, the United States Trade Representative (USTR) extended over 400 exclusions exempt from additional duties. These exclusions were scheduled to expire on May 31, 2024, but were further extended through June 14, 2024, while certain exclusions were extended through May 31, 2025. Also, note that doing business with certain Chinese companies may require a license if these companies are listed in the Bureau of Industry and Security’s Entity List.

The United States and China’s sanctions against each other and the growing political tension between the two countries make manufacturing electronics in China riskier than it used to be. Despite that, many U.S. companies still prefer manufacturing goods in China, as the pros outweigh the cons.

Some of the Top EMS Providers in China:

• BYD Electronics 
• NextPCB
• Agile Circuit
• PCBgogo
• Topscom
• Luxshare Precision Industry Co.
• UETPCB
• Global PCB
• PCBMay
• Suntek Electronics

Export Regulations in China

China’s Export Control Law (ECL) prohibits or restricts the export of such goods as nuclear products, military items, and dual-use products: chemicals, nuclear goods, encryption items, biological products, and missile-related goods.

Besides the ECL, exporters must comply with other export-related regulations, particularly with the Export Prohibited and Restricted Technology Catalog. This document lists items whose export is prohibited or is subject to license management. Technologies not mentioned in the Catalog are deemed as free export, but such items still require the completion of contractual registration procedures on a designated website.

Some technologies in the list are:

• Telemetry coding and encryption software or hardware
• Artificial intelligence
• Cryptography and security tech
• Advanced defense tech

The list is updated every year.

Note that in 2020, China issued the Unreliable Entity List Regulations (UEL Regulations). The document lists enterprises, organizations, and individuals prohibited from export/import operations with Chinese businesses. The UEL regime is independent of the ECL and applies separately.

As embedded electronics developers, we often order prototypes of our devices from Chinese factories, and we are quite satisfied with the quality of their work. If you choose to start your project with Integra Sources, we can also recommend a factory for mass manufacturing.

Taiwan

Benefits

• Expertise and quality

Taiwan’s electronics manufacturing industry emerged 20 years ahead of China’s and has been dominating the market in terms of the quality of local semiconductors and devices. No wonder it remains one of the top IT outsourcing countries. Such brands as Acer, Asus, and HTC come from Taiwan. It is also home to the famous TSMC. The country has a highly skilled workforce and high robot density, which results in a decent labor productivity indicator ($57 per hour worked). All this makes Taiwan a reliable location for both manufacturing and developing advanced electronics.

• Intellectual property protection

The country has strict IP laws and a long history of collaborating with foreign customers. Local manufacturers are trusted by such companies as HP, Siemens, Apple, NVIDIA, Intel, and others.

• Advanced infrastructure

As of 2023, Taiwan takes the 13^th position in the World Bank’s Connecting to Compete 2023 Report with an LPI score of 3.9. 

Challenges

• Higher production costs

Although manufacturing goods in Taiwan is cheaper than in Western countries, it is still generally more expensive than outsourcing to other Asian countries.

• Not suitable for large-scale production

Taiwan’s electronics manufacturing industry has a limited number of facilities. As a result, it is more suitable for small-scale manufacturing of advanced electronics or machinery rather than for large-scale production of simple consumer-grade products.

• Geopolitical uncertainty

With the tensions between mainland China, Taiwan, and the U.S. on the rise, it is unclear what to expect in the near future and how the conflict will change the market.

Some of the Top EMS Providers in Taiwan:

• HonHai Precision (Foxconn)
• 3CEMS Group
• Tripod
• AGP ELECTRONIC INC.
• 3AE Electronics Co., Ltd.
• ADLINK Technology, Inc.
• ZD Tech
• Pegatron
• Unimicron
• Compeq

Export Regulations in Taiwan

Under Taiwan’s Foreign Trade Act, most goods are generally allowed to be freely exported and imported. However, the export of certain strategic high-tech commodities (SHTC) is either prohibited or requires an export license. 

Taiwan currently maintains the following export control lists:

• The European Union’s Export Control List for Dual-Use Items and Technology and the Common Military List prohibit or restrict the export of nuclear technologies, information security systems, some industrial equipment, and more.
• The Sensitive Commodities List (SCL) controls exports to North Korea.
• The SCL controls exports to Iran.
• The SCL controls exports to Russia and Belarus.

If you want to rely on Taiwan’s electronics manufacturing companies, make sure to study these and other related laws here.

Any product that falls within one of these lists is considered an SHTC item. Non-listed products may still be deemed SHTCs if their end-users are suspected of developing nuclear, chemical, or biochemical weapons, missiles, or other weapons of mass destruction. If you’re not sure whether your product falls within one of these types of SHTCs, you should request the Industrial Technology Research Institute (ITRI) for an SHTC assessment by submitting a completed Strategic High-Tech Commodities Application Form.

Also, Taiwan’s authorities do not allow the export of SHTCs to entities listed in the SHTC Entity List.

The United States

Benefits

• High labor productivity and quality

When outsourcing electronics production to America, one benefits from high labor productivity ($70 per hour worked). USA electronics production features cutting-edge technologies, automation, highly-skilled professionals, and strict quality assurance, which makes the country fit for manufacturing complex electronics, especially in highly regulated industries: aerospace, aviation, healthcare, etc.

• Public perception

Goods manufactured in the U.S. are generally perceived as high-quality around the globe. Moreover, almost two-thirds of Americans prefer domestic products over foreign goods, although they are unwilling to pay more than 10% extra for them.

• Intellectual property protection

Due to strict laws and reliable IP enforcement, there’s less risk that an American contract manufacturer will steal your design without consequences. 

Challenges

• High labor costs

America has one of the highest factory and manufacturing average salaries in the world ($5,508), which makes USA electronics manufacturing very expensive. Consequently, you may find it difficult to compete against goods produced in countries with cheaper labor costs. 

• High taxes

American corporate tax rates are among the highest in the world, not to mention the complexity of the local tax system.

• Old infrastructure

In the 2021 Report Card for America’s Infrastructure published by the American Society of Civil Engineers, the country earned a “C-”. The nation needs to invest about $6 trillion by 2031 to make the necessary improvements.

• Logistics issues

If you want to sell the product not only in North America but also in Europe, the Middle East, Asia, and other regions, then you will have to add shipping costs to the final price.

Some of the Top EMS Providers in the USA: 

• Avanti Circuits
• ACT (USA) International LLC.
• TechnoTronix EMS
• Advanced Circuitry International
• Imagineering, Inc.
• PCB Power
• Sunstone Circuits
• Bay Area Circuits
• Twisted Traces
• RUSH PCB, Inc.

Export regulations in the United States

Here are the key laws regulating the export of goods from the U.S. International Traffic in Arms Regulations (ITAR) controls the export of weapons, military items, military services, and military-related data. The Export Administration Regulations (EAR) control the export of technology, technical data, as well as designs, models, instructions, manuals, formulae, and other information required for the development, production, or use of a product. The Commerce Control List (CCL) lists specific products that require an export license. The CCL is divided into 10 categories, which are further subdivided into five groups.

As you can see, the list contains a range of electronic products, including computers, sensors, and telecommunication equipment.

If an item is not on the list, it is designated as EAR99 and does not require an export license – unless it is going to an embargoed country. These are mostly low-tech consumer products.

The Bureau of Industry and Security also imposes specific license requirements for the export of certain goods to certain businesses, research institutions, organizations, and individuals. This so-called Entity List can be found in Supplement No. 4 to Part 744 of the Export Administration Regulations.

Mexico

Benefits

• Fast-growing hub

With over 730 plants manufacturing ICs, computer memory and CPU chips, audio and video devices, and other electronics, Mexico’s electronics production industry has great export potential. Local EMS providers offer services to Foxconn, Toshiba, Samsung, LG, and Intel. The country can also boast a relatively skillful workforce.

• Low labor costs

Mexico is one of the cheapest countries in terms of manufacturing workers’ average salaries. However, energy costs in Mexico are higher than in the U.S. ($0.215 vs. $0.147 per kilowatt-hour). So, the overall production may not be as affordable as one would expect. 

• Proximity to the United States

One of the greatest benefits of manufacturing electronics in Mexico is its proximity to the U.S. and Canada, two large potential markets. Shipping goods to these countries from Mexico should be easier than transporting them from East Europe or Asia. 

• Zero import rates

Mexico is a participant in the United States-Mexico-Canada Agreement (USMCA) that introduces special duties for goods imported to the U.S. from Mexico. Such goods are marked with ‘S’ in the Harmonized Tariff Schedule of the United States (see Column 1 Special). Most of these goods can cross the border for free.

Challenges

• For North America only

Unless you target North America, Mexico can offer no benefits compared to other attractive locations. The cost of shipping from Mexico to other regions isn’t much different than transporting goods from China.

• Costlier BOM

Mexico’s electronics production enterprises have to import components from China, so the bill of materials for your device may become more expensive due to shipping and tariff costs. On the other hand, fast shipping time usually leads to less stock and, therefore, less warehouse space is required, which may make the final price of the product acceptable despite higher BOM cost.

• Goods must be made in Mexico

The USMCA trade agreement and free import duties only apply to originating goods, i.e., products produced entirely in the territory of a USMCA country or whose regional content value is less than 60% (if the transaction value method is used) or less than 50% (if the net cost method is applied). So, if the product cannot be proven to originate from Mexico, regular import taxes will be applied.

Some of the Top EMS Providers in Mexico:

Many of them are international corporations with facilities in different countries.

• Kimball Electronics Mexico
• RayMing PCB & Assembly
• Lanix
• AsteelFlash Group
• K&S Advanced Systems
• Benchmark Tijuana
• SigmaTron International
• Jabil Circuit Mexico
• Circuitec Company
• Zollner Electronics

Export Regulations in Mexico

The Secretariat of Economy (SE) governs the export of conventional arms and dual‑use goods and technologies under the Wassenaar Arrangement in accordance with the Official Journal of the Federation on June 16, 2011, and subsequent amendments.

The regulation controls dual‑use software and technology, nuclear, chemical, and related technology equipment, materials, and software. Annex I of the regulation restricts the export of the following categories of dual-use items:

• Special materials and related equipment
• Processed materials
• Electronics
• Computers
• Telecommunications and information security
• Sensors and lasers
• Navigation and avionics
• Marine
• Aerospace and propulsion

The exporter must obtain a prior permit before shipping these goods to another country. However, the regulation contains exceptions for goods shipped by Mexican companies to the U.S. or Canada.

Note that Mexico bans the export of certain goods to Afghanistan, the Central African Republic, Congo, Eritrea, Iraq, Iran, Lebanon, Libya, North Korea, Somalia, Sudan, and Yemen.

Conclusion

Top IT outsourcing countries for electronics production are located in Asia. China’s electronics manufacturing industry offers relatively low production costs, developed infrastructure, and easy access to local raw resources and components. Another attractive location is Taiwan, which offers expert facilities with a skilled and experienced workforce. 

In North America, one should also consider the United States. However, although USA electronics manufacturing offers excellent quality control or reputational value, the production cost here may outweigh these benefits. Those targeting the North American market may find Mexico a much cheaper alternative located close to the U.S. and Canada.

If you need to develop your product first, our team would be glad to help you out. We are experts in designing embedded devices, power electronics, robotics, and embedded software. Contact Integra Sources to discuss your project. Make sure to read Part 2 of this post dedicated to Malaysia, Thailand, Vietnam, and India.

Preparing for Mass Production

Creating an electronic product starts with development. This task can be completed in-house or outsourced to an electronics development company with expertise in a given field. Integra Sources specializes in developing IoT devices, power electronics, FPGA-based solutions, and other embedded systems for various industries. Contact our team to learn about our experience. After that, you should make sure your product is ready for mass production. Use the following checklist. 

• Design for manufacturing and assembly

There is more than one way to make a properly functioning device. However, not all solutions are equally cost-efficient in terms of production. Simply put, the product must be designed in such a way that it is easy and cheap to produce. Professional electronics development companies design products with the manufacturing and technical capabilities of modern factories in mind, which is called ‘Design for Manufacturing and Assembly’.

• Product testing

Products under development undergo various tests at all phases of the process. The same goes for the final product. There are many types of tests designed for different devices. Read our blog post on PCB and electronics testing to learn more. Testing ensures the product meets the functional, non-functional, and certification requirements.

• Certification

Most electronic devices must be certified if you want to sell them. Certification proves that the product meets regulatory requirements and industry standards on safety, environmental protection, noise level, etc. Some certifications are mandatory, while others are voluntary. Learn more in our post on electronics certification in the U.S. and EU. Different countries impose different requirements on electronic devices, depending on their type and field of application. It’s important to obtain all the required certifications before launching mass production because altering the design will require changing the manufacturing process, which will lead to extra expenses. 

• PCB design documents

These include the bill of materials (BoM) as well as the PCB schematic and layout. Our team uses Altium Designer and other CAD software for PCB design and layout. The projects created in such software can then be exported as Gerber files used for manufacturing. They describe copper layers, the coordinates of components, vias, and tracks on the board, and other details that factories need. 

• Test software

Along with hardware, Integra Sources also develops embedded software for our devices. However, we strongly advise against handing it over to factories for the sake of IP protection. As a safety measure, we create test firmware that only checks if the board’s components are working properly but does not contain any business logic. The team can also develop software for test fixtures that automatically check the work of manufactured PCBAs in factories. 

• Documents for enclosure design 

These are the documents required to manufacture enclosures for the printed circuit board in a factory. They include a 3D model of the PCBA and assembly drawings if required. Although Integra Sources doesn’t design enclosures, we have reliable partners who can take care of this task. 

If the product is tested and certified and you have all the required documents, it’s time to decide whether you want to outsource production to other countries or manufacture the product domestically.

Domestic vs. Overseas Manufacturing

The Advantages of Domestic Production

1. No export and import taxes 

When bringing goods to the domestic market from abroad, you will have to pay additional export and import duties unless there’s a special trade agreement between the two countries.

2. No shipping delays 

When you think about the logistics of electronics manufacturing, domestic production looks more attractive. Transporting goods from other countries, especially those situated in distant regions, increases the risks of delay, lead times, and shipping costs. From this perspective, making goods domestically look more attractive. 

3. Easier to solve issues and disputes

If a problem that requires your personal attendance occurs in the territory of your country, traveling there will take less time and effort than going abroad. Also, solving legal disputes inside your own country is easier than in international courts.

4. No communication barriers

Lastly, when dealing with people who speak the same language as you, there are fewer chances for misunderstandings and confusion.

The Advantages of Outsourcing to Other Countries

1. Reduced production costs

Third-country electronics assembly or manufacturing can be profitable due to lower costs of labor, raw materials, energy, and other indicators compared to developed countries in North America, Europe, and other regions. Additionally, one can benefit from various government incentives. The profit often outweighs additional taxes and shipping costs.

2. No capacity limit

By hiring a contract manufacturer in a country with an advanced electronics industry, you can benefit from its stronger capacity. That is if domestic manufacturers can’t offer the same scale of production. For example, it’s easier to find an EMS provider who will accept a large order in China than in Taiwan. 

3. Bigger market

If you want to sell the products internationally, it is worth moving production to a larger potential market. This is one of the reasons many consumer electronics companies find China so attractive: its population is over 1.4 billion people.

4. Reputation

There are countries whose reputation in the electronics industry serves as a seal of excellence: for example, Taiwan, Japan, and South Korea. Some people are even willing to pay a bit more for the goods produced there. If your own country isn’t one of them, it may be worth outsourcing to such a destination.

Most Popular Countries for Outsourcing Electronics Production

When choosing where to outsource manufacturing, one should take into account several factors:

1. Labor costs and productivity

• Average factory and manufacturing salaries 
• Labor productivity (GDP per hour worked)

2. Logistics infrastructure and transportation costs

• Logistics infrastructure development 
• The cost of export-import operations

3. Macroeconomic and legal environment

• Macroeconomic environment rating
• Ease of doing business

4. The potential of the domestic market and export

• Imports of electronic components
• Export of electronic components
• Population size

Electronics can be outsourced to different countries located mostly in three regions: Asia, East Europe, and North America. Check our post Best Countries for Contract Electronics Manufacturing, Part 1 and Part 2 for more information on some of the countries in the list below.

Asia

China’s electronics manufacturing is very strong. The country is the largest exporter of electronic devices not only in Asia but in the whole world due to various reasons: relatively low labor and energy costs, domestic suppliers of raw materials and components, advanced infrastructure, and factories with high output capacity. 

At the same time, one should not forget about the trade war between China and the U.S., which makes importing goods to America from China more expensive due to high tariffs.

Another concern is potential IP infringement. If a product becomes popular, don’t be surprised to see a neighboring factory manufacturing something very similar. That’s why we recommend that you spend time developing protection against reverse engineering. One can also produce different parts of the device at different locations and assemble the product at yet another factory.

Taiwan started manufacturing electronics long before China. It can boast highly skilled specialists, high robot density, strong IP laws, and advanced infrastructure. The famous TSMC is located here. Such brands as Acer, Asus, and HTC come from Taiwan.

It is also worth mentioning Thailand, Vietnam, Malaysia, and India as these countries have low labor costs and are located close to China and Taiwan, the main manufacturers of electronic components. However, they lack skilled workers and developed infrastructure.

North America

The United States is considered one of the leading electronics manufacturers due to strong intellectual property protection, high quality, impressive labor productivity, and good public perception: around two-thirds of Americans prefer domestic goods over foreign products and are willing to pay 10% extra for them. However, the production cost here is much higher than in Asia.

Mexico, on the other hand, borders the U.S. and has much lower labor costs. It is regarded as a fast-growing electronics industry hub that produces ICs, computer memory and CPU chips, audio and video devices, and more. As a participant in the USMCA trade agreement, the country benefits from special duties for products exported to the United States. All this makes outsourcing production to Mexico potentially profitable if you target North America.

East Europe

Businesses targeting the European market may be interested in outsourcing production to Poland, the Czech Republic, Romania, and Hungary due to their proximity to Western Europe and lower production costs.

Your next task is to find a contract manufacturer.

What Companies Can Manufacture Electronics?

Electronics Manufacturers

There are several types of companies that specialize in manufacturing electronics. They are usually referred to as ODM, OEM, or EMS, which can be confusing. Let’s find out what these terms mean. 

ODM stands for original design manufacturer. These are companies that both design and manufacture their own products, hold the intellectual property rights to the design, and sell the product to 3^rd parties that, in turn, sell it under another brand. ODM businesses also allow their customers to make slight changes to the product, for example, change colors or packaging. 

OEM stands for original equipment manufacturer. This term generally refers to businesses that produce parts or subsystems used in the final product sold by another company. It is a contract manufacturing model similar to ODM, except OEM businesses do not hold IP rights to the product design. Instead, they make products according to the specifications provided by the customer.

However, the term is ambiguous and can have other meanings. For example, it can refer to the manufacturers of systems that include other companies’ subsystems, which means they are brand owners. In this case, such companies as Apple, Microsoft, Samsung, or LG can be referred to as OEM companies.

Generally speaking, the type of company you are looking for is an EMS provider. You can also hear the terms CEM (contract electronics manufacturer) and ECM (electronics contract manufacturer), but they are basically synonymous with EMS.

EMS, or electronics manufacturing services, refers to a business model that implies not only contract manufacturing of electronic components and assemblies but also a range of other value-added services. Foxconn, the world’s largest contract manufacturer of electronics that makes products for Microsoft, Amazon, Sony, IBM, and other giants, is an EMS company.

The range of services EMS companies provide varies and can include any of the following: 

• Electronics design
• Prototyping
• PCB assembly
• Electromechanical assembly
• Testing
• Aftermarket services
• Laser ID Marking on PCBs
• Conformal coating
• Return and repair services
• Supply chain management

Note that most manufacturers offer several types of partnerships instead of adhering to a single business model. So, one and the same company can be an original design manufacturer and offer contract manufacturing services at the same time. Examine the business’ website or contact its managers to make sure they offer the services you want.

Integra Sources specializes in electronics design and embedded software development. Although we do not offer manufacturing services, we have long-lasting relationships with several Chinese manufacturers whom we can recommend.

Enclosure Manufacturers

An electronic device or system usually consists of hardware (one or several printed circuit boards, LEDs, and other electronics) and an enclosure – a plastic or metal shell inside which the hardware is fixed. EMS providers usually specialize in PCB manufacturing, so you will probably have to order enclosures from another factory. 

Some EMS providers do offer both of these services, but in most cases, they simply order enclosures from another facility located nearby. Such turnkey production is more expensive but makes managing the process much easier. 

When contacting a factory, make sure to ask how many pieces of your device they can or are willing to manufacture, as some businesses may refuse to take your order.

What is Minimum Order Quantity?

Manufacturing an average printed circuit board can cost from $0.5 to $500, depending on different factors, including the board’s complexity. If we add the cost of enclosure manufacturing and assembly, the final cost of production of your device grows even more.

Generally speaking, larger order volumes come at lower prices, partially due to economies of scale and partially due to discounts that factories may offer in return for a big order. On the one hand, the more products you produce, the more you have to spend on warehouse rent. On the other hand, the profit from larger volumes often exceeds these extra costs.

However, some factories do not accept just any order as they require a minimum order quantity. MOQ is the lowest amount of products a contract manufacturer agrees to produce. To manufacture a product, a factory has to prepare a production line, buy and transport the required raw resources or assembly components, prepare a warehouse, etc. All this takes a lot of time and resources, so the order has to be large enough to spread out all the costs over all the manufactured units. 

Manufacturers use two types of minimum order quantities:

Simple MOQs have only one requirement stated, either in the number of products to be produced or the cost of the order. If the contract manufacturer agrees to do the job only if you order at least 10,000 devices, that’s an example of a simple MOQ.

Complex MOQs have more than one requirement for orders. It could be the material or component type used, the minimum dollar amount, shipping costs, product color restrictions, or anything else they find critical to the profitability of their business.

The minimum order quantity depends on various factors including:

• Price of raw materials and components: businesses that supply factories with these resources insist on their own MOQs.
• The marginality of the product: the lower the margin, the more products factories have to manufacture in order to make enough profit.
• Market price: factories cannot set prices considerably higher than their competitors.

Small-size manufacturers usually offer low MOQs – starting at 25, 10, or even 1 pcs per order, which also makes them perfect for ordering prototypes during embedded hardware design. But there’s a limit to which they can scale their production. Large factories, on the other hand, can produce in huge quantities but usually insist on higher MOQs, starting at 500 or 1000 pcs per order.

You can learn about the MOQ of a particular EMS provider on their website. But remember that the minimum order quantity can be negotiated if you have something of value to offer in return.

Finishing Burst

Product Assembly

After the electronics and enclosure for your product are manufactured, these components must be assembled. Assembly can usually be entrusted either to your EMS provider or to your enclosure manufacturer. Naturally, you will need to organize the shipping of enclosures or electronics to one or another unless you find a provider offering a turnkey service. 

You can also assemble the final product in yet another location, even in another country. But it’ll complicate the logistics of electronics manufacturing even further.

It’s also a good idea to order a trial batch first. It will prove that the manufacturer can make a product of satisfying quality and that the production cost is low enough. 

Testing & Certification 

Before shipping a product to another country, you must obtain a certificate of conformity (CoC) or a letter of conformance. These documents certify that your product complies with specific quality and safety standards, laws, and regulations applied in the importing country. 

The process of obtaining one varies depending on the type of product you’re importing and the country’s legislation. But there are general steps an importing company can follow:

• Identify the bodies responsible for issuing CoC.
• Contact them and request an application form.
• Fill out the form and provide supporting documents: the manufacturer’s contact information, copies of test reports, technical files, and manuals.

The authorized body will review the application and issue a CoC if everything is OK. 

Packaging 

Make sure to discuss packaging with the factory responsible for shipping your PCBAs or assembled products. During transportation, electronics can suffer from many hazards and, therefore, must be properly protected.

Bubble wrap or foam is commonly used for absorbing vibrations and impacts. To protect electronics and printed circuit boards from moisture, bags of silica gel are usually used. To shield electronics from electrostatic discharge events, one can use anti-static bubble wrap (it’s different from regular bubble wrap) or ESD bags (aka pink poly).

When hiring a forwarding agent, make sure the company has dealt with electronics and PCBAs before.

Shipping Products 

Professionals spend years honing their skills in logistics, so here we can only give general tips.

When it comes to overseas trade, there are two common transportation methods: air freight and ocean freight. 

Shipping goods by air is generally more expensive but takes less time. It suits small and light batches. Ocean freights take longer and are limited by sea ports only, but this is the cheapest shipping method.

When transporting goods by sea, you can choose between two shipment modes: FCL (full container load) and LCL (less than container load). In the case of FCL containerization, one container is filled with goods from one client. With LCL, a container is filled with goods from more than one client. LCL is generally cheaper for an average shipment but takes one or two weeks longer. Besides, the chance of damage, misplacement, and loss is higher. FCL is faster but pricier.

On land, shipping goods by rail is the cheapest option, especially when it comes to long distances. Trucks, on the other hand, usually move faster because they can choose shorter routes. But this speed difference only works for short distances.

Export/Import Customs Clearance

If you choose to manufacture and sell your product in different countries, you will have to deal with export and import procedures. Make sure you have prepared all the required certificates and permits. 

The customs clearance procedure and the list of required documents depend on the local regulations, the type of product, and the trading agreements between the importing and exporting countries.

Export documents typically include the following: 

• Export declaration
• Bill of lading 
• Commercial invoice and packing list
• Certificates of origin for your goods
• Insurance documents 
• Export license and permit (depends on the type of goods to be exported)

Import documents typically include:

• Import declaration
• Bill of lading
• Commercial invoice and packing list
• Copy of the import permit and/or license 
• Certificate of origin
• Insurance documents 

When a consignment arrives at the customs, the officers examine, classify, and evaluate it. Based on this evaluation and export/import tariffs, duties are calculated. Remember that the consignment cannot cross the border until the required duties are paid. Most countries have zero export duties for most goods except for agricultural products, natural resources, and semi-manufactured goods. The importer usually has to pay import duties and value-added tax. Forwarders and customs brokers/agents also charge a customs clearance fee.  

To make things simpler, make sure you choose an experienced supplier that knows what documents you are going to need. We also recommend hiring a forwarder with expertise in exports from a particular country and knowledge of local procedures. Lastly, hire a customs broker as well so that the agency can handle the customs clearance process on your behalf. Most forwarders provide customs clearance brokerage as additional services.

Distribution

After the consignment arrives in the importing country, the products can go to wholesalers or distributors, who will distribute them to customers or retailers. If you produce the goods domestically, consignments can go to the intermediaries right from the factory. Details depend on your product type, business model, and other factors.

The easiest way to handle shipping is to hire a forwarding agent, whose responsibility is to arrange the transportation of goods from one location to another.

Conclusion

Outsourcing electronics production to foreign EMS providers complicates logistics and increases the product cost due to shipping costs and export/import duties – if you want to sell the goods in your own country. You will also face certain communication barriers and other issues.

Nevertheless, third-country electronics assembly or manufacturing can be very beneficial if it helps decrease production costs. Many Asian countries have lower wages and energy prices compared to the U.S., Japan, South Korea, and Western Europe. China’s electronics manufacturing industry is the largest in the world. Despite the growing labor costs and American sanctions, the country remains the world’s top location for contract electronics production due to the vast experience of local EMS providers, cheap raw materials, the proximity of component manufacturers, and advanced infrastructure.

If you don’t have a product design yet and want to turn your idea into a fully functional device, give us a call. Integra Sources has experience in developing consumer electronics, smart home systems, IoT devices, medical equipment, and other embedded solutions. We use the DFA/DFM approach in our work and always aim to minimize the manufacturing cost of products. We can also recommend reliable electronics manufacturers.

What Is Software Development Estimation?

The success of a project largely depends on its accurate assessment. Estimating a software project is challenging as it requires an understanding of all stages of the project, experience in solving similar tasks, and a good command of software tools.

Each development company works on a project in its own way, so we are going to tell you how a software development project is evaluated here at Integra Sources. 

When a customer comes to us with an idea for a software product, he or she, at the outset, wants to know the development duration and cost.

First, the customer receives a rough estimate. It may differ from the final cost, but the customer immediately gets an idea of how long the development will take and how much it will cost.

Then, specialists delve into the development details and create a detailed table, which displays the minimum and maximum estimated hours for each project stage.

The estimate always contains a range of minimum and maximum estimated hours. The range can be small if we’re dealing with a routine project and significant if the project is complicated.

The minimum number of hours can be spent in the ideal course of the process when everything goes like clockwork, which rarely happens in real life. The maximum number of hours includes the time needed for correcting bugs, searching for optimal solutions, etc.

In addition to the project duration and cost, customers often want to know what software tools will be used to create the program: programming languages, libraries, and frameworks.

A software app project estimate may have a portfolio with apps created by the team and app screenshots so that a client could evaluate the team’s UI/UX design skills.

Project estimates may also include team size if the client needs to meet strict deadlines or wants the work to be done as quickly as possible.

Software project evaluation depends on many factors. Let's list just a few of them.

• Project development specification

The team should clearly understand the objective and scope of the project to make accurate software development estimates. The more details the client provides about the future software solution, the more precisely the development team can estimate the project duration. 

All customer’s ideas and requirements regarding the software product are set out in the project development specification. The customer can prepare a requirement document in-house or entrust it to an outsourcing development team.

Some project categories, such as medical software and electronics development, require the customer to carry out a lot of preparatory work. The client prepares a discovery phase report that contains a detailed product description, a proof-of-concept, software UI/UX design, and many other details. The team uses such a report first to evaluate the project and then throughout development.

• Project size and complexity

The larger the project and the more tasks it contains, the more difficult it is to estimate its duration. Complex project evaluation is usually carried out by all the team members involved in the development.

• Experience in developing similar software products

Evaluating a typical project (for example, Windows audio and video drivers) will not take much time or cause any difficulties. A rough estimate will practically correspond to the final development cost.

Estimating the development of a completely unfamiliar software product is much more challenging because the team has no experience with similar solutions.

• Software team skills

If software developers are fluent in all the tools necessary for a given project (programming languages, libraries, frameworks, and development environments), then it is much easier for them to estimate the duration of each project stage since they clearly understand all the tasks and can foresee possible issues.

What Does a Project Estimate Consist of?

The hours allocated for a project can be divided into two parts:

• development hours;
• hours of additional activities.

Let's talk about the hours allocated for development. The team uses different criteria for software and hardware development estimates since the objects of evaluation are different. 

Software development can include application design, interface layout, database design, server software development, library creation, frontend and backend development, etc. 

Electronics development may include schematic and PCB design, PCB assembly, FPGA design, and embedded software development (very often, it goes without an interface, so the embedded software estimate will be different from the app estimate).

Development duration also includes the time required for electronic components (for hardware development) or the customer's device (for software development) to arrive.
Pauses caused by long component delivery and parallel development processes are clearly visible on a Gantt chart. It is a must-have for  IT project estimation as it shows the project schedule to the customer and helps distribute the workload between developers.

The additional hours estimate has the same components for both software and hardware projects. It includes testing, debugging, preparing documents, project management, communication, and handover. Additional activities take up half the project time, or even more, and grow with the project size. The larger the project, the more time is spent on it. 

PCB and electronics testing can be carried out in special laboratories if necessary, which increases the number of testing hours. 

The project budget can also include pre-certification activities.

When developing an electronic device and its embedded software, we first estimate the hardware development hours since the software part will depend on what electronic components we will use. If the task is to design a device and a mobile application for communicating with it, then the evaluations of the hardware and software parts can proceed in parallel.

Please note that changes in electronic component selection will invariably affect embedded software, meaning development hours can increase significantly.

Estimation Techniques

There are many approaches to effectively estimating a software project and its critical parameters such as cost, scope, and time.

Analogous estimating is based on comparing the effort needed to complete a project with a similar project finished in the past. It is suitable for typical projects or stages where experts are confident in every development step. Analogous estimating helps save time and resources as the team does not evaluate each task from scratch.
Top-down estimating is a form of analogous estimating and is based on expert opinions.

Bottom-up estimating covers the entire scope of a project and implies calculating the cost and time for each task. This detailed approach involves all team members and focuses on the smallest details.

The bottom-up approach is suitable for non-standard projects or stages, especially if the team has no history of running similar tasks. By working through all the development steps, programmers can find ingenious ways to complete a task in a shorter time without losing quality. 

Three-point estimating uses optimistic, pessimistic, and most likely scenarios to find an accurate project estimate.

There are two calculation formulas.

1. The triangular distribution is a weighted average of the optimistic estimate (o), the pessimistic estimate (p), and the most likely estimate (m).

2. The Beta distribution (or PERT) is a weighted average, with the most likely scenario given four times more weight than the optimistic and pessimistic estimates.

Generally, the PERT distribution results in a more accurate estimate than the triangle method.

The Wideband Delphi method is based on a peer assessment of the time required to complete a task. The technique involves conducting several rounds of task assessments made anonymously. Team members discuss results between rounds and can revise their estimates. Eventually, the team should reach the most accurate estimate.

IT project estimation techniques can be associated with a particular project management approach. Agile project management (APM) is based on the ability of the team to quickly adapt to changing development requirements. APM uses flexible approaches to project evaluation.

T-shirt sizing is a method that considers project task sizes as if they were T-shirt sizes, such as XS, S, M, L, and XL. Everyone knows approximately the difference between T-shirts in XS and XL sizes. Likewise, the developers are well versed in the task sizes without the need to measure each of them.

The T-shirt size technique implies that the development team does not estimate the time required to complete a task or predict a specific deadline but compares the size of one part to the size of another.

Planning poker (or Scrum poker) is an estimation technique used in the Scrum management methodology. Projects are estimated with the help of poker cards. This technique minimizes the anchoring effect: when participants' estimations are influenced by a judgment previously expressed by another team member (especially a reputable one).

Each technique has pros and cons, so you can use holistic project estimation methods to reach a high level of certainty and improve the reliability of the estimates. Thus, the PERT estimating method is often used with analogous estimating or with top-down technique.

You can mix methods for different stages of the project. For example, the poker planning method can be used at the beginning when there is still uncertainty and insufficient information, and the three-point estimation technology can be used later when all the necessary information has been collected.

Techniques Our Experts Use

The Integra Sources team uses holistic project estimation approaches when evaluating software development. When getting started on a project, we rely on estimates of similar past projects and consider the expert opinions of the developers. We also use a three-point technique to provide a detailed project duration and cost estimate.

If a project is complex or contains challenging tasks, we apply the bottom-up technique, breaking down the project into smaller tasks and estimating how much time and effort each task will take.

Sometimes, but not as often, our team uses scrum methods, like T-shirt sizing, Planning poker, etc., to understand how quickly we can move through development stages and how we can optimize processes.

Who Makes Software Project Budgeting?

The project manager is responsible for software project planning. The PM adds all the necessary additional activity hours to the project estimate. Different specialists may be responsible for estimating development hours, depending on the IT project estimation technique chosen. 

At Integra Sources, the project is evaluated by technical leads and developers. Furthermore, the CTO always validates the final project estimate before sending it to the customer.

Software Project Estimate Issues

First, the effort spent on estimation depends on the project itself. Large, complex, and unique projects make estimation more difficult and errors more likely to occur.

According to statistics, poor estimates during project planning are one of the most common causes of project failure.

What does underestimating a project lead to?

• The project goes far beyond the budget in terms of time and cost, which cannot but affect its results and further cooperation. Exceeding the budget rates leads to misunderstandings and disputes. The team and the customer spend even more time trying to figure out what went wrong. 

• Software product quality may suffer due to haste caused by deviations from the schedule. As a result, the customer either receives a solution with many shortcomings or has to wait longer until the developers fix the bugs caused by the rush.

The better safe than sorry principle is not always true when it comes to project evaluation. Yes, the final estimate includes additional time to resolve possible difficulties and unexpected situations since there are no ideal projects. However, an overestimated project can scare away the customer, whose natural desire is to have software developed faster and for less money.

An incorrect assessment has ruined more than one project, and, unfortunately, we have had such an experience, too.

Our development team conducted a rough estimate of electronics and embedded software development. There were some doubts about whether we correctly understood the customer’s wishes and would be able to implement the project. We advised the client to conduct pre-project preparation and write a thorough requirement document.

Having carefully studied the specification document, our developers increased the estimate by 1.5 times since the project turned out to be more complicated than we expected and the customer added new requirements. The new cost appeared too high for the customer, and he stopped the project.

The biggest lesson we have taken from that unsuccessful project many years ago, at the very beginning of our activities, is that we should evaluate projects as carefully as possible, clarifying in advance all the unclear moments with the customer.

Another thing that can scare customers away is when estimates change too much.

Why Might the Estimate Change?

Fluctuations in project estimates can occur for many reasons. Here are the most common ones:

• Software developers misunderstood the customer's wishes. 

Most often, this happens due to a poorly drafted requirements document or when there is no document and all the requirements are explained verbally.

High-quality pre-project work and a thorough specification can minimize the risks of incorrect project estimates.

• The task took longer than planned.

Some development stages may turn out to be more difficult than initially expected, or there may be many nuances, for example, when developing medical solutions. Programmers may spend more time when they do not have enough expertise in a specific programming language or software tools.

Such moments are difficult to avoid or predict, and a competent estimate of software development should include additional hours for challenging tasks and unforeseen circumstances.

• The customer wanted to make changes to the electronics functionality or add new software features.

Most often, it happens to software projects (e.g., app development) since the client’s wishes are not limited by the hardware architecture's capabilities.

Keep in mind that even seemingly small changes in software design or functionality can result in a large number of additional development hours.

Conclusion

It is not that easy to accurately estimate software development duration and cost. There are many things to consider, including time for force majeure, logistical delays, and finding solutions to challenging tasks.

Incorrect project evaluation can cause the loss of a project and a client. That is why precisely estimating the time and effort put into development is so vital.
Diverse development experience and mastery of various project evaluation methods will help the outsourcing team achieve accurate budgeting. Tell us your ideas, and we will estimate how long it will take to put them into practice and how much it will cost.