A "Teardown" is a dis-assembly of device to gain knowledge of the discrete parts.  IHS Markit goes further to estimate the "should cost" of components to the manufacture for mature production runs. The purpose of IHS Markit teardowns is to support customer's quest to understand cost at a component, feature, function, and total device level.  IHS Markit teardowns cannot account for every possible cost, but our pricing methodology delivers a consistent and standard review of devices costs, enabling a baseline for comparison and additional price modification by our customers as they see needed.

An IHS Teardown is

  • Bill-of-Materials (BoM) Created from Hardware; Primary focus is “Should Cost” hardware cost assessment
  • Based on assumptions (Volume, country of origin, lifetime, EMS Providers, etc.) and snapshot in time
  • Leverages knowledge base (products, people, and practice areas) at IHS Markit
  • Disassembly / Photography / Die Photos and Comprehensive identification From ICs to 0201 passives and screws (Manufacturers and PN#s Identified where possible)

An IHS Markit Teardown is NOT

  • BOM Analysis from client-provided BOM
  • Reverse engineering / Schematics / Performance testing
  • Perfect knowledge / Customer’s precise costs
  • A forecast (CPT and other services can provide)
  • Cost of IP, Royalties, R&D, Or Post-Mfg Costs
  •  

 


 
Your Pricing Process is...
  • You contact your procurement, engineering department, suppliers and ask for a price quote for a component.
  • You have a friend at supplier or competitor supplier that can provide price guidance / target / validation.
  • You have a contact in the industry of similar or different devices that can provide price guidance / target / validation.
  • You have a coworker on another program that can provide price guidance / target / validation.

IHS Teardown Pricing Process is...
  • We don’t get a direct quote from the component suppliers, we do…
  • Research pricing data, similar parts, and rationalize market price points “top down” analysis,
  • Cost model “bottom up” analysis in some cases,
  • We conduct analyst supplier/customer meetings and leverage multiple IHS Markit price tracking services,
  • We conduct teardown results customer feedback meetings and receive direct component pricing feedback,
  • For every data point you have, we potentially have multiplies more, from multiple suppliers, device types, and industries, directly from people that procure or use that same component.

Teardown Pricing Methodology Varies by Component...

Commercial ICs or Other Parts w/ Part Numbers
  • Many multi sourced, electronic, commodity type parts can be priced using IHS Markit CPL (Component Price Lanscape) service...
    • Smaller SMD passives (capacitors, resistors, magnetics, crystals, etc.)
    • Memory (DRAM, Flash (NAND/NOR), SRAM, Etc.) - analysts too…
    • Low-level discrete semiconductors (SOT-23, SOT-323, Etc.)
    • Parts not tracked in CPL will us the method below...
  • Ad Hoc Research by analyst team in US and China on part numbers from numerous sources
  • Analysts look at all collected data and make “judgment call” on discounting or other ‘factoring’ to be applied to found prices
  • Deep matter experts consulted if available to corroborate
  • If no information can be found – we can revert to description search methodology that looks at similar components based on description and make pricing adjustments for the differences.
Core Silicon
  • Silicon cost modeling – “IC Price Evaluator” (“Bottom-Up”).  
  • Analyst research / rationalization of similar parts using, if possible, market price points (“Top-Down”)
  • Applied to all ASICs, ASSPs and high value standard commercial ICs
  • We decapsulate, xray and cost model varying numbers of ICs based on the type of product being torn down and how much pricing info we can collect from other sources. Off-the-shelf, low-value ICs are rarely modeled – but key content is almost always cost modeled even if other (market) pricing information can be collected.  We don’t model memory (its market driven pricing from our analyst community) or FPGA & CPLDs (the cost-plus methodology makes little sense here).

Printed Circuit Boards

  • Detailed, proprietary PCB Model developed by IHS Markit

Plastics / Metals - Enclosures

  • Ad hoc materials / pricing research
  • Analyst rationalization based on materials + processes, manufacturing, etc.

Manufacturing Costs

Calculated manufacturing costs are in the Excel-based model delivered directly to customer (dynamic calculations available to customers)

  • Broken out in BOM analysis
  • Composed of “Insertion”, “Assembly”, and “Test”
  • Calculations can all be seen in .XLS and assumptions easily altered

All the manufacturing costs are totally dynamic in a way that allows our customers to, on the fly, make complete manufacturing cost recalculations based on changes they may want to make (or play “what-if scenarios) real-time.


Wheel

teardown IC Cost Model BOM Benchmark CPTandCHW CAPSStrategic Support Services

The most complete and dynamic set of teardown data the way you want...

Features:

  • Complete costed list of all electronic and electro-mechanical components that includes parametric (manufacture / part number), dimensional and costing per component. 
  • 1:1 relation between photos of all device parts and components (sub-assemblies, printed circuit boards, and mechanical assemblies and parts).
  • Summary Cost Analysis is included to enable views of cost summaries by Assembly, Function, Component Family, Component Type, Top Cost Drivers, and Major Integrated Circuits (ICs).

Benefits:

  • Understand the cost of components and features that drive the total cost of a device.  Enabling companies to know what they need in their devices and how much that device should cost.
  • Establishes a cost benchmark (Total device and component level)
  • Design comparisons (Cost and Qty) and Feature comparison/necessity
  • Visualization of better board layout opportunities, assembly methods, and feature selection.

Andrew Rassweiler

Senior Director, Cost Benchmarking Services

Andrew Rassweiler manages the cost benchmarking services at IHS, which includes the teardown service as well as Component Price Trackerâ„¢, and Component Health Watchâ„¢ services.

Wayne Lam

Principal Analyst, Mobile Devices & Networks

Wayne Lam is principal analyst within the wireless communications team and is responsible for research related to the market tracking, forecast and supply chain analysis of mobilized devices.

Paul Kim

Senior Analyst, Teardowns

Paul is responsible for display teardown research within the teardown team at IHS, with a specialization in display module structures and cost analyses in products such as LCD Modules, TSP Modules and TVs.

Wing Lam

Associate Director, Teardowns

Wing Lam is an associate director for the teardown and cost benchmarking research and manages the Shenzhen teardown team. He also provides technical and pricing analysis on electronic hardware ranging from mobile phones to automotive control modules.

Kevin Keller

Senior Principal Analyst, Teardowns

Kevin Keller brings more than 22 years of engineering and design experience to the IHS teardown analysis team, where he performs detailed hardware analysis of electronic devices such as wireless...

Luke Koo

Director, Teardowns

Luke Koo is responsible for technical and pricing research on display modules and components. In addition, Luke has extensive experience in display technology and the display industry.

Vincent Leung

Principal Analyst, Teardowns

Geography
Global
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