Custom VS. Off-the-Shelf Semiconductor Parts: Making the Right Choice

The semiconductor industry offers two primary options for sourcing components: Application-specific integrated circuits and other standard product (OTS) devices. Making this decision has the possibility of influencing the performance of the product and the cost and time of getting the product to the market. Working with reliable semiconductor parts suppliers can greatly benefit your business. As you will be reading this article, we will be explaining the difference between custom and off-the-shelf semiconductor parts and providing you with some tips that would be helpful to you.

What do ‘Off the Shelf’ Semiconductor Parts mean?

OTS semiconductor parts are those that can be purchased off the shelf or are available in standard form for use at any time by anyone. These parts are manufactured in large quantities and hence are easily obtainable and relatively cheaper. OTS parts are fixed in terms of configuration and specifications and give an instant solution to many of the problems.

Advantages of OTS Parts:

● Quick availability: OTS parts are procured from suppliers and they are easily available in the markets.

● Lower cost: They are cheaper since they are manufactured on a large scale hence lowering their prices.

● Tested and reliable: All these parts have been incorporated into different applications and can be considered they be very stable and well-tested.

Disadvantages of OTS Parts:

● Limited customization: OTS parts may not meet the requirements that are required in a particular project.

● Potential over-specification: Some of them may include characteristics that are not helpful in the application and thus may result in increased power consumption or system complications.

Custom Semiconductor Parts

Custom semiconductor parts, or application-specific integrated circuits (ASICs), are used where design requirements demand them. These components are evolved with the help of the manufacturers and customers and are designed to deliver a specific performance, dimension, and power.

Advantages of Custom Parts:

● Optimized performance: Custom parts are manufactured to fit the needs of your product therefore making them very efficient.

● Reduced power consumption: Customization makes it possible to cut off unnecessary facilities and hence results in designs that are efficient and energy-friendly.

● Competitive differentiation: Custom semiconductors are application-specific products that highlight the uniqueness of your product against your competitors.

Disadvantages of Custom Parts:

● Higher upfront costs: Custom parts are costly since they require a lot of design and developmental work due to their specificity in the product.

● Longer lead times: The design and manufacturing process might take months and this is a great concern in terms of time to market.

Distinctions Based On Cost Effectiveness

While comparing the custom and OTS semiconductor parts, the costs are one of the most important considerations to make.

Off-the-Shelf:

● OTS parts are cheaper in the initial stages because these are manufactured in a large number.

● The potential for cost savings is large for products that do not need specific functions.

● It may reduce the maintainability costs since the documentation and support of these parts are easily available.

Custom:

● This is mainly because the cost of coming up with custom parts involves designing, testing, and the creation of tools.

● The cost that is associated with the production of a particular unit decreases as the number of units produced rises in the long run.

● Custom parts can be cheaper in the long run if the product is to be manufactured in big numbers.

Table: Cost Comparison: Custom Vs. Off-the-shelf semiconductor

Differences Based On Performance Requirements

Custom semiconductor parts are special in the environment where performance is critical. These parts are made to fit the exact needs of a system, which in turn makes it fast, power efficient, and easy to integrate.

Off-the-Shelf:  

● OTS components may not give the best performance for a specific application of a high level of specialization.

● In many cases, OTS parts are adequate and provide reasonable performance levels for a broad range of applications.

Custom:

● Custom parts are designed to have certain characteristics of performance.

● This leads to effective power utilization, low heat production, and effective processing speed of the devices.

● It is, therefore, important to note that performance gains can lead to competitive advantages in the marketplace.

Time to Market

The time taken to get a product to the market is also among the key considerations made by firms when entering into strategic partnerships.

Off-the-Shelf:

● OTS parts are the best because they are easily accessible and therefore the time taken to bring them to the market is short.

● This option is also very suitable for projects that are time-bound or those that have limited development capital.

Custom:

● The semiconductor products have longer cycle times as compared to other products and may take months of designing, prototyping, and testing.

● Although they are more flexible and performant, custom parts might slow down product delivery as compared to off-the-shelf ones.

Distinctions Based On Scaleability:

Another factor that has a significant influence on choosing the right semiconductor solution is the scalability of a project. OTS parts are more cost-effective in low production volume situations, but custom parts may be more cost-effective in high production volume.

Off-the-Shelf:

● OTS components can be procured from various suppliers thus making it flexible.

● Yet, they can be restrictive to scalability if the product demands specific characteristics or further enhancements.

Custom:

● Custom semiconductors on the other hand can be repurposed once the design is made and can be scaled.

● They are most useful in large project development where productivity and effectiveness are paramount.

Customization vs. Standardization: Knowing What Strategy to Adopt

Various applications have different demands, and this is the reason why sometimes it is necessary to use a custom part or an OTS part. Some product types require simple standardization whereas other types require unique solutions.

Off-the-Shelf:

● This is suitable for products that do not have particular needs.

● Good for when you’re just starting a project or when the budget is an issue.

Custom:

● Suitable for applications requiring special functionality, superior performance, or less power consumption.

● Custom designs can also cater to certain industry requirements like automotive, aerospace, or medical applications.  

Generating Long-Term Value and Creating Future Corporate Value

Custom semiconductors are the opposite of OTS components in that they provide much more protection against obsolescence. This ability is a great advantage of custom solutions because it means that in the future any changes will have to be made by the same team, and this is much more cost-effective, given that the rate of change is high in modern industries.

Off-the-Shelf:

● OTS parts can become a problem if newer technologies override them and this may lead to compatibility problems in the future.

● While it may save money in the short term, it will cost more to update or redesign a product.

Custom:

● Having a dedicated semiconductor means that the product can be planned for the long-term, thus, it can be easily integrated with the new technology.

● These parts can be designed to be scalable and upgradable and this is a better proposition in the long run.

Conclusion

Custom semiconductor parts are ideal for specific projects while pre-made semiconductor parts may be suitable for other projects. Pre-built components are useful and cheaper when it comes to standard use and require less time to be spent on development. However, for products that are more application-specific, high-performance, energy efficient, or have some other specific requirement then the use of custom semiconductors is more desirable. When choosing between the two, you can make the right decision depending on the cost, performance, and scalability. If you need custom  semiconductor parts service, look no further than Fortuna.