Breaking Down PCB Pricing: How is the Cost Determined

PCB quote packaging involves gathering and organizing all the necessary details to estimate the cost of manufacturing a PCB. This process includes not only design specifications but also material selection, manufacturing methods, and engineering considerations. It goes beyond a simple financial estimate and provides a thorough engineering analysis to ensure the quote is accurate, feasible, and optimized for production.

Every aspect affecting production such as material type, size, complexity, and production volume must be factored into the quote. The goal is to provide a clear, detailed estimate that helps clients understand exactly what they are paying for and why. This article covers the key factors influencing the engineering fees of a PCB in detail.

Why is Engineering Important in PCB Quote Packaging?

Engineering is crucial in the PCB quoting process because it goes beyond simply estimating costs. It's about thoroughly understanding the technical requirements and ensuring all aspects of design and production are considered. Engineers review the design, materials, and manufacturing methods to ensure the quote accurately reflects the true cost of production.

Without engineering expertise, a quote may be inaccurate, leading to potential cost overruns or delays in production. Engineers ensure that key technical details, such as layer count, trace width, and component placement, are properly evaluated and factored into the final estimate. To know more about PCB production see out latest article on this topic.

How Does PCB Manufacturing Methods Impact the Quote?

The method used to manufacture the PCB can greatly impact the final cost. Common methods include:

• Through-Hole Technology (THT): This method is used for components that require a stronger mechanical bond. It’s more labor-intensive and, therefore, more expensive.

• Surface-Mount Technology (SMT): This is the most common method for modern PCB assembly. It’s efficient and cost-effective for most applications.

• Flexible and Rigid-Flex Manufacturing: These types of PCBs require specialized processes and materials, which can increase the cost.

Advanced techniques such as laser drilling for microvias or selective soldering for intricate assemblies may be needed for high-precision designs. Each method demands careful evaluation, and engineers must select the most suitable process that balances both the design requirements and budget constraints.

Types of PCB Design Costs:

The main components of PCB design costs are:

1. Engineering costs

• Schematic design
• PCB layout
• Simulation and analysis
• Component selection
• Design reviews and documentation

2. Prototype fabrication costs

• Board materials
• Number of layers
• Board size
• Line width and spacing

3. Special processes like impedance control

• Testing
• Shipping

4. Assembly costs

• Component cost BOM
• Placement and assembly
• Test and inspection
• Tool costs

5. EDA software licenses

• Library costs
• Other costs

To see more about this topic here is our brief guide on industrial PCB manufacturing.

What Are the Key Factors in a PCB Quote?

Engineers calculate PCB manufacturing costs by considering the design specifications and the production methods needed to meet those requirements. They start by analyzing the PCB’s layout and design, which determines factors like layer count, trace width, and hole size. Each of these elements has a direct impact on the materials used and the manufacturing process:

1. Board Size and Dimensions

One of the most straightforward factors is the size of the PCB. Larger boards require more raw materials and manufacturing time, which naturally increases the cost. The number of layers on the PCB also plays a role - more layers mean more complex manufacturing processes, which raise the price.

2. Material Selection

The type of material used in the PCB has a significant impact on the cost. Common materials include FR4, ceramics, metal substrates, etc. The most common material is FR4, which offers a balance between cost and performance. However, high-frequency boards may require advanced materials like Rogers, which are more expensive.

3. Number of Layers

High density interconnect (HDI) boards typically require more elaborate wiring techniques and may involve the use of microvias, all increase the number of layers and design complexities. PCBs can range from single-layer boards to complex multi-layer designs. Each additional layer adds complexity to the fabrication process, requiring more time and resources.

4. Production Volume

Like most manufactured goods, PCBs benefit from economies of scale. High-volume production can reduce unit prices by spreading tooling and setup costs, while small-batch orders are typically more expensive due to relatively high production preparation and start-up costs.

5. Copper thickness

The copper thickness in the PCB usually has a standard choice, such as 1oz, 2oz or even thicker copper layers. The higher the copper thickness, the better the conductivity of the PCB, suitable for high-current applications, but the increase in copper thickness will significantly increase the manufacturing cost.

6. Surface Finish

The surface finish of a PCB, which affects both performance and durability, can impact pricing. Common finishes include HASL (Hot Air Solder Levelling), ENIG (Electroless Nickel Immersion Gold), and immersion silver. ENIG, for instance, offers excellent durability and is more expensive than HASL.

7. Drilling and Via Types

The complexity and number of drilled holes, or vias, also affect PCB pricing. Standard vias are generally inexpensive, but more advanced types such as blind, buried, or microvias add to the cost. The smaller the vias or the more specific their placement, the higher the manufacturing difficulty, which in turn raises the price.

8. Trace Width and Spacing

The width of the copper traces and the spacing between them also influence the cost. As the traces become narrower, more precision is required during manufacturing, which leads to increased costs. Tight tolerances often demand advanced fabrication techniques and specialized equipment.

9. IPC level

IPC grades reflect the quality standards of PCB manufacturing, commonly used are IPC-A-600 grades 1, 2 and 3. The higher the grade, the more stringent the manufacturing requirements, and the corresponding increase in cost.

10. Turnaround Time

The speed at which you need your PCBs can significantly affect the cost. Express or quick-turn services, which expedite the manufacturing process, usually come at a premium.

11. Testing and Quality Control

To ensure high-quality boards, manufacturers often perform rigorous testing, such as Electrical Testing (E-testing) or Automated Optical Inspection (AOI). Depending on the level of testing required, this can add to the final price.

In the assembly processes component placement, type (surface-mount or through-hole) and what testing setup requirements are also counted. After evaluating these details, they calculate the costs associated with each step of the manufacturing process. This ensures the final quote is both accurate and comprehensive. The assembly cost derivatives are discussed in the next section in detail.

Assembly Cost Drivers in PCB Design:

The cost drivers involved in assembly boil down to the following:

Number of unique components: More unique components equates to higher cost, although ordering components in bulk reduces the price per component.

Type of components: All-SMD assembly can cost up to ~50% more through-hole assembly.

Double-sided vs Single-sided assembly: Double sided assembly adds to costs as your board essentially has to run down the assembly line twice. There are also greater costs for double-sided assembly.

Lead pitch on SMD components: Fine-pitch SMD components vary by manufacturer. If you’re already using all-SMD, some manufacturers will not charge extra for finer pitch components.

BGAs: Single-sided or double-sided BGA component assembly can cost ~20% more than other SMD components. Finer pitch BGAs below some limit could carry additional costs, depending on fab and assembly capabilities.

Unless assembly is being done by hand, assembly costs will not always increase linearly with the number of boards. In other words, with automated assembly, doubling the number of boards does not always double the cost of assembly. Some of the assembly cost goes into programming machines, while the remainder effectively pays for machine time.

Main Factors to Keep in Mind While Designing A PCB:

PCB design engineers typically hold a bachelor's degree or higher in fields like electrical engineering, automation, or computer science. They are skilled in electronic design, PCB layout, and manufacturing, and are proficient in software such as Altium Designer, Eagle PCB, or CAD. Additionally, they possess knowledge of digital and analog circuits, signal processing, embedded systems, and communication technologies. It is recommended to study in a single point of depth, such as PCB design, SI simulation, thermal design, EMC design and product testing.

Conclusion:

Printed Circuit Boards (PCBs) are the foundation of most modern electronics, and knowing how their pricing is calculated helps engineers and businesses make informed decisions. Determining the cost of PCB assembly is a complex process that involves evaluating several factors. By understanding these elements and using a structured approach, project managers and engineers can more effectively estimate and manage assembly costs.

Regular review and adjustment of cost calculations, along with staying informed about industry trends, will help ensure competitive pricing and profitability in PCB assembly projects. As the electronics industry continues to evolve, so too will the methodologies for calculating and optimizing PCB assembly costs. Staying adaptable and leveraging new technologies and processes will be key to maintaining cost-effectiveness in this dynamic field.  When planning your next project, it’s essential to consider all these variables to get the best value from your manufacturer while ensuring the PCB meets your design and performance requirements.