Why More OEMs Are Outsourcing Power Semiconductor Assembly

A quiet shift is happening in industrial power design.

More OEMs are choosing not to assemble power semiconductor sections themselves — even when they have the technical ability to do so.

Why?

Because assembly is no longer just a technical task — it's a responsibility decision.

1. Assembly Is Where Most Risk Lives

The power semiconductor stage is often:

• The hottest part of the system

• The most failure-sensitive

• The hardest to debug after installation

When something goes wrong, the cost isn't just the device —
it's downtime, troubleshooting, and reputation.

2. In-House Assembly Looks Cheaper — Until It Isn't

Many OEMs initially assemble power devices internally to:

• Save cost

• Maintain flexibility

• Control the design

But over time, hidden costs appear:

• Inconsistent quality across batches

• Increased testing effort

• Field failures that are hard to trace

What looks cheaper on the BOM often becomes more expensive in the field.

3. What Outsourcing Assembly Actually Changes

Outsourcing power semiconductor assembly does not mean giving up control.

It means:

• Letting specialists handle thermal, mechanical, and electrical integration

• Receiving a tested, repeatable sub-system

• Reducing internal engineering and quality workload

Most importantly, it moves part of the reliability responsibility upstream .

4. Why This Matters More Than Ever

Modern power systems are:

• Running closer to their limits

• Switching faster

• Expected to last longer

At the same time, OEM teams are smaller and more time-constrained.

Outsourcing assembly allows OEMs to focus on:

• System-level design

• Control algorithms

• Market differentiation

Instead of repeatedly solving the same assembly problems.

5. What OEMs Look for in an Assembly Partner

Not every supplier is suitable.
OEMs typically look for partners who:

• Understand real operating conditions

• Can customize assemblies, not just sell standard parts

• Offer consistency across production batches

• Provide technical feedback, not just quotations

The goal is risk reduction , not just outsourcing labor.

6. When Outsourcing Assembly Makes Sense

OEMs are most likely to outsource when:

• Power levels are medium to high

• Failure consequences are serious

• Production volumes demand consistency

• Internal resources are better used elsewhere

In these situations, outsourcing assembly becomes a strategic decision — not a cost-cutting one.

Final thought

Power semiconductor assembly is no longer just about putting parts together.
It's about deciding who owns reliability .

For many OEMs, the answer is increasingly clear.