How Can Smart Home Companies Cut Chip Manufacturing Costs by 40%?

What Makes ASIC Testing So Expensive for IoT Startups?

digitalSTROM faced a big problem. They make smart home devices. But making their special computer chips was costing too much money.

The Company and Their Challenge

digitalSTROM creates smart home systems. Their products let you control lights and appliances through your existing electrical wires. You can even talk to them using Amazon Echo.

But here’s the thing. Every light switch needs a special chip inside it. This chip talks to other devices through your home’s power lines. Making these chips was getting expensive fast.

The main problems were:

• Money troubles – Each chip test was costing too much
• Time pressure – Stores were waiting for products
• Quality worries – The chips had to work perfectly every time
• Guessing games – They never knew how many chips they’d need

Why ASIC Manufacturing Gets So Expensive

Most people don’t realize how hard it is to make custom chips. Think of it like baking cookies. But instead of flour and sugar, you’re working with silicon and electricity.

Every single chip needs testing. Lots of testing. You can’t just make a thousand chips and hope they all work. That would be like selling cars without checking if the brakes work.

The testing process is slow. It’s expensive. And if something goes wrong, you might have to throw away hundreds of chips.

For a small company like digitalSTROM, this was a nightmare. They couldn’t afford to waste money on bad chips. But they also couldn’t afford to be late delivering products to stores.

The Smart Solution That Changed Everything

DELTA came in with a different approach. They didn’t just test chips one by one. They tested many chips at the same time.

Here’s how they did it:

Planning From Day One

DELTA’s engineers worked with digitalSTROM from the very beginning. They helped design the chips to be easier to test. This saved time and money later.

Testing Multiple Chips Together

Instead of testing one chip at a time, DELTA tested many chips together. This cut testing time by more than half. Less time means lower costs.

Finding Problems Fast

When chips failed, DELTA used special microscopes and X-ray machines. They could find the exact problem quickly. This meant fewer wasted chips.

Staying on Schedule

DELTA had backup plans ready. When one batch of chips had problems, they quickly switched to another supplier. No delays. No angry customers.

Real Results That Made a Difference

The partnership worked. digitalSTROM got their products to market on time. Their chips worked reliably. And most importantly, they kept their costs under control.

Nuno Pinto from digitalSTROM said something important. When problems happened, DELTA moved fast. They didn’t waste time with meetings and paperwork. They fixed things.

This matters more than you might think. In the tech world, being late to market can kill your business. Customers don’t wait. They buy from someone else.

Why This Matters for Other Companies

Many small tech companies face the same problems as digitalSTROM. They have great ideas but struggle with manufacturing costs.

The key lessons here are simple:

• Start planning tests early – Don’t wait until your chip is finished
• Test multiple units together – It’s faster and cheaper
• Have backup plans ready – Problems will happen
• Work with experienced partners – Don’t try to do everything yourself

Home automation is growing fast. More people want smart homes. But the technology has to be affordable and reliable.

Companies like digitalSTROM prove it’s possible. With the right manufacturing partner, small companies can compete with big corporations. They can deliver quality products without breaking the bank.

The smart home market keeps growing. But success isn’t just about having good ideas. It’s about executing those ideas efficiently. That means controlling costs while maintaining quality.

digitalSTROM found a way to do both. Their story shows other companies what’s possible when you choose the right manufacturing partner.