How do I select between an off-the-shelf module and a custom designed RF assembly?
OTS vs. Custom RF Assembly Decision
The make-vs-buy decision for RF assemblies is one of the most impactful choices in an RF program. The wrong choice can either waste money (over-investing in a custom design for low volumes) or limit performance (using a generic module when a custom design is needed).
Decision Framework
- Low volume (1-100 units): Almost always use OTS modules. The NRE for custom design cannot be amortized over such a small quantity. Exception: if no OTS module meets the performance requirement, custom design may be the only option
- Medium volume (100-1000 units): Evaluate both options. Calculate the total cost including NRE. If the OTS per-unit cost × quantity > custom NRE + (custom per-unit cost × quantity): custom is cheaper. Performance and SWaP requirements may also drive the decision
- High volume (1000+ units): Custom design is usually more cost-effective. The NRE is amortized across many units. Custom design also provides full supply chain control and optimization opportunity
OTS: TC_OTS = C_module × N_units
Custom: TC_custom = NRE + C_custom_unit × N_units
Break-even: N_break = NRE / (C_module - C_custom_unit)
For NRE=$100K, C_module=$500, C_custom=$200:
N_break = $100K / $300 = 333 units
Frequently Asked Questions
What OTS modules are available?
Major OTS RF module suppliers: Mini-Circuits: broadest catalog of amplifiers, filters, mixers, attenuators, switches, and frequency synthesizers. Low to moderate performance. Very competitive pricing. Analog Devices (via Hittite Microwave acquisition): high-performance amplifiers, VCOs, PLLs, mixers, and digital attenuators. Qorvo: GaN PA modules, switches, and filters for defense and 5G. Marki Microwave: high-performance mixers and IF amplifiers. API Technologies / Richardson RFPD: integrated subsystem modules (receivers, transmitters, transceivers). Check these catalogs before starting a custom design.
What NRE should I expect?
Simple custom RF module (amplifier or filter on a small PCB): NRE $20-50K, 3-6 months development. Moderate custom module (multi-stage receiver or transmitter with digital control): NRE $50-150K, 6-12 months. Complex custom RF assembly (multi-function module with MMIC design, hermetic packaging, military qualification): NRE $200-500K+, 12-24 months. These estimates include: schematic and layout design, prototype fabrication (2-3 prototype iterations), testing and characterization, documentation, and production release. Military qualification testing (MIL-STD-810, MIL-STD-461) adds $50-200K to the NRE.
Can I start with OTS and switch to custom later?
Yes, this is a common and effective strategy. Phase 1: use OTS modules for the prototype and initial production. This gets the system into the field quickly with minimal NRE. Phase 2: once the system requirements are validated in the field, design a custom replacement that: reduces per-unit cost for volume production, optimizes performance based on field experience, and reduces SWaP. The key: design the Phase 1 system architecture to accommodate the custom replacement (use standard interfaces, document the requirements, and plan the transition).