Contract manufacturing · Network devices

NPI in electronics manufacturing for network devices: from specification to first build in Riyadh

New product introduction (NPI) is the stage in electronics manufacturing between a finished design and volume production. The factory confirms that the product fits its line, agrees the tests and acceptance criteria with the product owner, builds the first units and judges them against those criteria, and only then moves to volume. At IK Semiconductor, NPI for a network device runs at the SKD stage in Riyadh: you bring the design and specification, and the line assembles, tests, loads firmware and packages to it. This page sets out the steps, what to hand over and what to settle before the first build.

What NPI covers in electronics manufacturing

NPI turns a design into something a line can build the same way every time. The work usually falls into five parts:

The parts of new product introduction
PartWhat happens
Design transferThe product owner hands over the specification, the bill of materials, the firmware and the test requirements
Process planningThe factory works out how the device is built and tested on its line
Test and acceptance planningBoth sides agree which tests run on every unit, which on a sample, and what a unit must meet to be accepted
First buildThe first units are built to the agreed plan and judged against the acceptance criteria
Ramp to volumeProduction scales up, and any change to design, components or firmware goes through change control

NPI at the SKD stage, and what changes with CKD

At the SKD (semi-knocked-down) stage, major sub-assemblies arrive partly built. NPI therefore covers the steps done in Riyadh: final assembly, testing to the agreed plan, firmware loading, and branding and packaging. Components and circuit boards are made outside the Kingdom, so component supply usually sets the timeline more than line time does.

At the CKD (completely knocked-down) stage, planned for 2028, devices are assembled from individual components, including SMT and DIP board processes. NPI for a CKD programme will also cover those board-level steps.

SKD vs CKD: what each stage means for network devices

How a new device is introduced at IK Semiconductor

Each programme is scoped on its own terms. The general path is:

  1. Your first message. Device family, design status, annual volume and ramp, the date units must be in the field, and the target market.
  2. Fit and stage assessment. We check whether your device fits the line at its current stage, which parts of the build can be done in Riyadh now, and whether importing finished devices would serve you better.
  3. Quotation. Price and lead time for your programme and volume. Component procurement is stated separately from line time.
  4. Technical agreement. The test plan, acceptance criteria, firmware build, branding and packaging, and who holds each approval for the finished device.
  5. Contract. Ownership of the design, firmware and test fixtures, change control, approved alternate components, and what happens to tooling, fixtures and stock if the programme ends.
  6. First build. The first units are built to the agreed plan and judged against your acceptance criteria.
  7. Volume production. Changes to design, components or firmware go through the agreed change-control process, with re-validation where it applies.

Contract manufacturing for network devices in Riyadh

What to hand over for design transfer

You can start with a summary: the device family, volumes and timeline are enough for a first answer. For the technical agreement, prepare:

  • The specification and whether the design is final
  • Your acceptance criteria, if you already use them for this device
  • Test requirements, including what you expect on every unit and what on a sample
  • The firmware: who supplies the image loaded on the line, how builds are versioned, and how a change reaches production
  • The bill of materials and sourcing, including approved alternate components
  • Certification status: current approvals, the target market, and who holds type approval for the finished device
  • Branding and packaging artwork and requirements
  • Volumes: annual volume, ramp and the date units must be in the field

Decisions to settle before the first build

Decisions to put in writing before the first build
DecisionWhy it matters
Acceptance criteriaThe written definition of a unit you will accept. Without it, a yield figure tells you nothing
Test splitWhich tests run on every unit and which on a sample, set by your specification rather than assumed
Firmware controlAn untracked firmware change becomes a field failure nobody can reproduce
Fixture ownershipWho owns the fixtures and test rigs built for your programme goes into the contract
Change controlHow a component substitution or a design revision is proposed, approved and re-validated
ApprovalsWhether moving the build location triggers re-qualification of your device's approvals

When NPI in Riyadh is not the right call

Local assembly is usually the wrong answer for:

  • a few hundred units ordered once, where set-up and qualification costs outweigh the benefit
  • a design that is still changing, since each revision re-qualifies the line
  • a timeline shorter than the qualification cycle
  • a need for component-level or chip manufacturing

In those cases, importing a finished, already approved device is usually better, and we will say so in the fit assessment.

The factory

  • Company: IK Semiconductor (Interkey Semiconductor), an Interkey group company in Riyadh that assembles network devices under OEM contracts. First production began in 2025, at the SKD stage.
  • Device families: 5G CPE, Mesh Wi-Fi and ONT are the factory's SKD product lines, ready for manufacturing partnerships; 5G MiFi is a planned line.
  • Set-up: built to the specification of a partner factory that specialises in network products, with its standard operating procedures replicated in Riyadh, and supervision and knowledge transfer from the partner's team.
  • Quality: incoming components and finished devices are checked.
  • Management systems: ISO 9001, ISO 14001 and ISO 45001 certificates held by IK Semiconductor.
  • Roadmap: SKD now, CKD planned for 2028, ODM (in-house product design) as the long-term aim.

Questions product teams ask

How long does NPI take?

There is no standing figure, because the timeline depends on your components, approvals and volumes. Lead time is quoted per programme, with component procurement shown separately from line time.

What happens at the first build?

The first units are built to the agreed plan and judged against your acceptance criteria before volume production starts.

Who owns the design and the firmware?

You do. In an OEM programme the design and the firmware stay yours, and ownership of the test fixtures is written into the contract.

Can you assemble circuit boards (SMT) for a new device?

Not today. SMT and DIP board assembly come with the CKD stage, planned for 2028.

Can you design the device for us?

Not today. IK Semiconductor builds to your design and specification. In-house design (ODM) is the long-term aim.

Is there a minimum order quantity?

No fixed figure is published. Set-up and qualification dominate the cost of small runs, so tell us your volume and ramp and the fit assessment will say whether local assembly makes sense.

Start a programme

Tell us the device family, whether the design is final, the annual volume and ramp, and the date units must be in the field. We will reply with what the Riyadh line can take on at its current stage, or tell you if importing would serve you better.

info@interkey-sc.com.sa · +966-11-2180999 · +966-55-3475469 · Riyadh, Saudi Arabia