What is turnkey PCB assembly
Turnkey PCB assembly is a single-supplier model where the contract manufacturer (EMS) handles everything from BOM sourcing through final delivery: bare board fab, parts procurement, stencil, assembly, inspection, packaging. The customer hands over Gerbers, BOM, CPL, and a PO — the EMS hands back finished boards.
The opposite is consigned, where the customer ships all components and PCBs to the EMS and pays for assembly labour only. Partial-turnkey is the middle: the EMS sources commodities (resistors, caps, ICs from major distributors), the customer supplies long-lead, specialty, or pre-negotiated parts.
The three models compared
| Model | EMS sources | Customer sources | Typical add to BOM |
|---|---|---|---|
| Turnkey | PCB + 100% of BOM | Nothing | +5-12% |
| Partial-turnkey | PCB + commodities | Specials, long-lead | +3-7% on EMS portion |
| Consigned | Nothing | PCB + 100% of BOM | 0% (labour only) |
At Energetika-VDS we run all three. Most prototypes and runs under 5000 units come in turnkey because the engineering cost of building a procurement function for one product line dwarfs the markup.
What "turnkey" actually includes
Scope varies by EMS. At minimum, turnkey at Energetika-VDS covers:
- BOM scrub and DFM review (see our DFM checklist)
- Component sourcing through Digi-Key, Mouser, Farnell, Arrow, plus EU stocking partners ICAPE and NCAB for PCBs
- PCB fab — pooled service (Eurocircuits, AISLER for small) or dedicated tooling (NCAB, ICAPE for volume)
- Stencil purchase (laser-cut SS, 100-150 µm)
- SMT and THT assembly on our DDM Novastar SMT line — SPR-45 / LS60 / GF-120HT
- AOI in-house, X-ray sourced per board
- IPC-A-610 Class 2 inspection (Class 3 on request)
- Functional test (FCT) sourced through partners — see our position on FCT
- Packaging, ESD bagging, freight
Cost breakdown — where the 5-12% markup goes
| Bucket | % of markup | What it covers |
|---|---|---|
| Procurement labour | 30-40% | Sourcing, RFQs, PO management |
| Freight + handling | 15-25% | Multi-supplier consolidation |
| Inventory risk | 10-20% | MOQ overruns, attrition stock |
| Financing | 10-15% | Capital tied up in components |
| Margin | 15-25% | EMS profit |
On a €15/board, 1000-unit order, that is €750-1800 added vs running consigned. For most product teams that is cheaper than one engineer-month of procurement.
When turnkey wins
- Prototypes and pilot runs (1-50 units). Customer has no time to source 200 line items.
- Small batches (50-1000 units). Distributor MOQs eat any savings.
- Hardware startups. Cashflow benefits from one invoice, net-30.
- Multi-site EU customers. Single EU EMS handles VAT, customs, RoHS docs.
When consigned wins
- Volume above 50 000 units/year per SKU with direct distributor or franchise terms.
- Long-lifecycle products where customer has 2-5 year forecast and can stock-up.
- Defense / aerospace with traceability requirements that demand direct buy from authorised distributors.
- Customers who already run a procurement team for adjacent products.
Partial-turnkey — the realistic default
Most EU SMEs end up here. Customer holds: 1-3 high-value specialty parts (custom transformer, regulator IC with 40-week lead), perhaps a connector with proprietary tooling. EMS sources everything else.
This avoids the worst trap: a €0.40 LDO out of stock everywhere holding up a €30 000 build because the EMS only checks one distributor.
Lead time differences
| Model | Quote to ship | Notes |
|---|---|---|
| Turnkey (in-stock BOM) | 3-4 weeks | PCB fab is critical path |
| Turnkey (one long-lead part) | 8-14 weeks | One IC at 12 weeks = the schedule |
| Partial-turnkey | 3-5 weeks | Customer pre-stocks specials |
| Consigned | 2 weeks | Pure assembly cycle |
Get a binding quote in under 5 minutes via our estimator, or submit a full RFQ with Gerbers and BOM for an engineered quote within 48 hours.
Geographic context
EU-shore turnkey from Energetika-VDS in Strumica, MK lands at customer dock in 5-10 days for Germany, Austria, Italy, Hungary. JLCPCB and PCBWay (Shenzhen) deliver in 14-21 days door-to-door, often cheaper on the unit price but with import VAT, customs friction, and longer rework loops. Eurocircuits is the EU pooled-service standard but caps at 50 pcs / 5000 placements — above that we take over. AISLER targets prototype scale only. NCAB and ICAPE are PCB-only sourcing — they need an EMS partner for assembly.
Frequently asked questions
What is turnkey PCBA? A single-supplier contract manufacturing arrangement where the EMS sources every part of the bill of materials, the bare PCB, and assembles the finished board. The customer provides only design files and a purchase order.
Turnkey vs consigned — which is cheaper? Per-unit, consigned looks cheaper because the EMS does not mark up parts. Total-cost-of-ownership including the customer's own procurement labour, freight, and inventory risk often makes turnkey cheaper below 10 000 units/year.
What does turnkey include? BOM sourcing, PCB fab, stencil, SMT and THT assembly, AOI, optional functional test, IPC-A-610 inspection, packaging, and freight. Excludes design work, certification testing, and tooling for moulded enclosures unless specified.
Is turnkey cheaper than consigned? Not on BOM markup — turnkey adds 5-12%. It is cheaper when you account for the customer's procurement labour, MOQ scrap, freight consolidation, and shorter overall cycle time. Under 50 000 units/year, turnkey almost always wins on total cost.