Assembly stages explained · Network devices
SKD vs CKD: what each assembly stage means for network devices
SKD vs CKD in short: in SKD (semi-knocked down) assembly, major sub-assemblies arrive partly built and are completed, tested and packed locally. In CKD (complete knocked down) assembly, the product is built from individual components, including the circuit boards. The difference decides how much of the work is done in the Kingdom. This page compares the two stages for network devices such as ONT, 5G CPE and Mesh Wi-Fi, and shows where IK Semiconductor's Riyadh factory stands: SKD today, CKD planned for 2028 and ODM as the long-term aim.
SKD vs CKD compared
| SKD (semi-knocked down) | CKD (complete knocked down) | |
|---|---|---|
| What arrives at the factory | Major sub-assemblies, partly built | Individual components, bare boards and enclosures |
| Work done locally | Completion of sub-assemblies, final assembly, testing and packing | Circuit-board assembly, final assembly, testing and packing |
| Processes the line needs | Assembly, test and firmware stations, packing | All of the SKD processes, plus SMT placement, DIP soldering and board inspection |
| Time to start a new product | Shorter: fewer processes to qualify | Longer: board processes must also be qualified |
| Share of the work done in the Kingdom | Lower | Higher |
The terms come from the automotive industry and mean the same thing for electronics: an SKD kit arrives partly assembled, a CKD kit arrives as individual parts.
Where ODM fits
SKD and CKD describe how much of the product is built locally. OEM and ODM describe who designs it.
- OEM (original equipment manufacturer) model: the product owner provides the design and specification, and the factory builds to it. SKD and CKD programmes at IK Semiconductor run on this model.
- ODM (original design manufacturer): the manufacturer also designs the product, adapts it for the client and develops the intellectual property. At IK Semiconductor this is the long-term aim.
What each stage means for a network device
A network device such as an ONT, a 5G CPE or a mesh Wi-Fi unit combines a main board, radio or optical parts, antennas, an enclosure and firmware.
- At SKD, the main board and modules arrive built. The local line completes the device, loads the firmware named by the product owner, tests the unit against the agreed specification and packs it. For a radio device, the RF specification decides what is tested on every unit rather than on a sample.
- At CKD, the circuit boards are assembled in the factory with SMT and DIP processes, so board inspection and board-level testing join the local work, alongside everything done at SKD.
- For the product owner, a move from SKD to CKD changes the documents the factory needs (board files, component lists, test programmes), the supply chain for components and the qualification work before volume production.
SKD, CKD and local content
Saudi Arabia's local content regulation defines local content as the total spending in the Kingdom through national elements. In the Local Content and Government Procurement Authority's published material, that spending is measured across labour, research and development and training, assets, and goods and services, where goods and services are calculated from the value of the local components used.
Moving from SKD to CKD puts more processes, equipment and people into the local factory, which is why the CKD stage is described as bringing a higher local content percentage. The score for any product or establishment is still measured under the Authority's methodology, on audited figures. A supplier cannot declare it.
For a multi-year contract with a local content target that rises over time, ask which stage will apply to your device in each year.
IK Semiconductor's roadmap
| Stage | Status | What it covers |
|---|---|---|
| SKD | Current stage; first production in Q4 2025 | Assembly of partly built sub-assemblies, quality testing and packaging, local customisation and branding |
| CKD | Planned for 2028 | Complete assembly from individual components, SMT and DIP processes, a higher local content percentage |
| ODM | Long-term aim | In-house product design, custom client solutions and intellectual property development |
Device families: ONT, 5G CPE and Mesh Wi-Fi, with a 5G MiFi line planned. IK Semiconductor assembles network devices. It does not fabricate chips.
Questions to settle before you sign
- Which stage applies to your device today, and which steps happen in Riyadh?
- When is the next stage planned, and what must happen before it applies to your product?
- Which tests run on every unit at each stage, and who provides the test fixtures?
- How will your documents, approvals and fixtures carry over from one stage to the next?
- How will a change of stage be handled in the contract: change control, re-qualification and price review?
Questions buyers ask
What do SKD and CKD stand for?
SKD stands for semi-knocked down: the product arrives as partly built sub-assemblies. CKD stands for complete knocked down: the product arrives as individual components.
Is SKD real local manufacturing?
SKD is local assembly. The product is completed, tested and packed in the Kingdom, while its circuit boards are assembled elsewhere. CKD adds board assembly to the local work.
Does IK Semiconductor have an SMT line?
Not yet. SMT and DIP processes come with the CKD stage, planned for 2028.
When does CKD start at IK Semiconductor?
CKD is planned for 2028. If your programme runs past that date, tell us, and we will discuss how it can be planned across the stages.
Does IK Semiconductor make chips?
No. It assembles network devices. Chips and other components come from component makers.
Which devices can be assembled at the SKD stage?
The factory lists ONT, 5G CPE and Mesh Wi-Fi as its SKD product lines, with a 5G MiFi line planned. Tell us your device and volumes, and we will confirm the fit.
Plan your programme across the stages
Tell us the device, the volumes per year, the contract length and any local content target. We will reply with the stage that applies today and how the programme could develop as the factory moves to CKD.
info@interkey-sc.com.sa · +966-11-2180999 · +966-55-3475469 · Riyadh, Saudi Arabia