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IC on Digikey is 5x more expensive than board containing same IC on Alibaba: How?



Announcing the arrival of Valued Associate #679: Cesar Manara
Planned maintenance scheduled April 23, 2019 at 23:30 UTC (7:30pm US/Eastern)low-cost idea for Identifying passive tags by inductive coupling/pulsesMinimizing PCB size of a 192 RGB LED arrayWhy DRAM costs much more than flash memory?What special problems are there if I use two radio modules on the same board?Can a 6 volt relay coil bear more than 6 volt?How to properly layout an external antenna seating and on board antenna at the same time?Eagle: supply pin vcc overwritten with more than one signalDesigning NFC/RFID PCBFirst PCB project design critique requested (RF) EDITEDMy antenna tuning component values worked on a fresh board previously. Now they're not working. What could be causing this?



.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty,.everyoneloves__bot-mid-leaderboard:empty margin-bottom:0;








1












$begingroup$


I built a prototype using an NFC board I bought from Alibaba for 1$ (https://www.alibaba.com/showroom/rfid-rc522.html).



It claims to use the NXP MFRC522 IC, and if I look on the board the chip has that part number and even the little NXP logo. It works like a charm on the prototype so now I'd like to build the NFC antenna into the product and use the same chip (I'll go through the antenna tuning/matching process).



The problem is this: If I want to buy this IC on Digikey, it costs $5.36 for QTY 1 and $3.61 for QTY 1,500 (https://www.digikey.com/products/en/rf-if-and-rfid/rfid-rf-access-monitoring-ics/880?k=rc522). The whole board from Alibaba which comes assembled with other passives and a crystal oscillator, along with 2 NFC tags and some headers, is about 1$.



How can this be possible? Is this just a result of economies of scale (are they really making this many generic NFC boards?) or are the ICs definitely clones? I'd love to be able to use the IC only and make my own PCB antenna, but jumping from 1$ to even $3.61 has a very significant effect on the overall cost of the product.



Does anyone know what justifies this huge price difference and how to deal with it as an electronics designer trying to keep costs low? Any advice is appreciated.










share|improve this question









$endgroup$


















    1












    $begingroup$


    I built a prototype using an NFC board I bought from Alibaba for 1$ (https://www.alibaba.com/showroom/rfid-rc522.html).



    It claims to use the NXP MFRC522 IC, and if I look on the board the chip has that part number and even the little NXP logo. It works like a charm on the prototype so now I'd like to build the NFC antenna into the product and use the same chip (I'll go through the antenna tuning/matching process).



    The problem is this: If I want to buy this IC on Digikey, it costs $5.36 for QTY 1 and $3.61 for QTY 1,500 (https://www.digikey.com/products/en/rf-if-and-rfid/rfid-rf-access-monitoring-ics/880?k=rc522). The whole board from Alibaba which comes assembled with other passives and a crystal oscillator, along with 2 NFC tags and some headers, is about 1$.



    How can this be possible? Is this just a result of economies of scale (are they really making this many generic NFC boards?) or are the ICs definitely clones? I'd love to be able to use the IC only and make my own PCB antenna, but jumping from 1$ to even $3.61 has a very significant effect on the overall cost of the product.



    Does anyone know what justifies this huge price difference and how to deal with it as an electronics designer trying to keep costs low? Any advice is appreciated.










    share|improve this question









    $endgroup$














      1












      1








      1





      $begingroup$


      I built a prototype using an NFC board I bought from Alibaba for 1$ (https://www.alibaba.com/showroom/rfid-rc522.html).



      It claims to use the NXP MFRC522 IC, and if I look on the board the chip has that part number and even the little NXP logo. It works like a charm on the prototype so now I'd like to build the NFC antenna into the product and use the same chip (I'll go through the antenna tuning/matching process).



      The problem is this: If I want to buy this IC on Digikey, it costs $5.36 for QTY 1 and $3.61 for QTY 1,500 (https://www.digikey.com/products/en/rf-if-and-rfid/rfid-rf-access-monitoring-ics/880?k=rc522). The whole board from Alibaba which comes assembled with other passives and a crystal oscillator, along with 2 NFC tags and some headers, is about 1$.



      How can this be possible? Is this just a result of economies of scale (are they really making this many generic NFC boards?) or are the ICs definitely clones? I'd love to be able to use the IC only and make my own PCB antenna, but jumping from 1$ to even $3.61 has a very significant effect on the overall cost of the product.



      Does anyone know what justifies this huge price difference and how to deal with it as an electronics designer trying to keep costs low? Any advice is appreciated.










      share|improve this question









      $endgroup$




      I built a prototype using an NFC board I bought from Alibaba for 1$ (https://www.alibaba.com/showroom/rfid-rc522.html).



      It claims to use the NXP MFRC522 IC, and if I look on the board the chip has that part number and even the little NXP logo. It works like a charm on the prototype so now I'd like to build the NFC antenna into the product and use the same chip (I'll go through the antenna tuning/matching process).



      The problem is this: If I want to buy this IC on Digikey, it costs $5.36 for QTY 1 and $3.61 for QTY 1,500 (https://www.digikey.com/products/en/rf-if-and-rfid/rfid-rf-access-monitoring-ics/880?k=rc522). The whole board from Alibaba which comes assembled with other passives and a crystal oscillator, along with 2 NFC tags and some headers, is about 1$.



      How can this be possible? Is this just a result of economies of scale (are they really making this many generic NFC boards?) or are the ICs definitely clones? I'd love to be able to use the IC only and make my own PCB antenna, but jumping from 1$ to even $3.61 has a very significant effect on the overall cost of the product.



      Does anyone know what justifies this huge price difference and how to deal with it as an electronics designer trying to keep costs low? Any advice is appreciated.







      pcb pcb-design pcb-antenna nfc cost






      share|improve this question













      share|improve this question











      share|improve this question




      share|improve this question










      asked 42 mins ago









      MapleTronixMapleTronix

      965




      965




















          2 Answers
          2






          active

          oldest

          votes


















          2












          $begingroup$

          I would say that they are probably counterfeit,this is a well known problem when buying from china, you cant be sure that they are original unless you are buying from a trusted chinese supplier.
          Most of the time they work alright if you are not pushing them to the spec limits,here are some links that can help you through this problem of chinese counterfeit IC and how to identify if what you are buying is fake






          share|improve this answer









          $endgroup$




















            1












            $begingroup$

            Digikey sources their parts from the makers and adds a retail mark up.



            The alibaba seller takes remnants from someone's production run (or possibly salvaged parts, or if you're unlucky counterfeit parts) they don't pay full price.






            share|improve this answer









            $endgroup$













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              2 Answers
              2






              active

              oldest

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              active

              oldest

              votes






              active

              oldest

              votes









              2












              $begingroup$

              I would say that they are probably counterfeit,this is a well known problem when buying from china, you cant be sure that they are original unless you are buying from a trusted chinese supplier.
              Most of the time they work alright if you are not pushing them to the spec limits,here are some links that can help you through this problem of chinese counterfeit IC and how to identify if what you are buying is fake






              share|improve this answer









              $endgroup$

















                2












                $begingroup$

                I would say that they are probably counterfeit,this is a well known problem when buying from china, you cant be sure that they are original unless you are buying from a trusted chinese supplier.
                Most of the time they work alright if you are not pushing them to the spec limits,here are some links that can help you through this problem of chinese counterfeit IC and how to identify if what you are buying is fake






                share|improve this answer









                $endgroup$















                  2












                  2








                  2





                  $begingroup$

                  I would say that they are probably counterfeit,this is a well known problem when buying from china, you cant be sure that they are original unless you are buying from a trusted chinese supplier.
                  Most of the time they work alright if you are not pushing them to the spec limits,here are some links that can help you through this problem of chinese counterfeit IC and how to identify if what you are buying is fake






                  share|improve this answer









                  $endgroup$



                  I would say that they are probably counterfeit,this is a well known problem when buying from china, you cant be sure that they are original unless you are buying from a trusted chinese supplier.
                  Most of the time they work alright if you are not pushing them to the spec limits,here are some links that can help you through this problem of chinese counterfeit IC and how to identify if what you are buying is fake







                  share|improve this answer












                  share|improve this answer



                  share|improve this answer










                  answered 26 mins ago









                  Lucas AlexandreLucas Alexandre

                  335313




                  335313























                      1












                      $begingroup$

                      Digikey sources their parts from the makers and adds a retail mark up.



                      The alibaba seller takes remnants from someone's production run (or possibly salvaged parts, or if you're unlucky counterfeit parts) they don't pay full price.






                      share|improve this answer









                      $endgroup$

















                        1












                        $begingroup$

                        Digikey sources their parts from the makers and adds a retail mark up.



                        The alibaba seller takes remnants from someone's production run (or possibly salvaged parts, or if you're unlucky counterfeit parts) they don't pay full price.






                        share|improve this answer









                        $endgroup$















                          1












                          1








                          1





                          $begingroup$

                          Digikey sources their parts from the makers and adds a retail mark up.



                          The alibaba seller takes remnants from someone's production run (or possibly salvaged parts, or if you're unlucky counterfeit parts) they don't pay full price.






                          share|improve this answer









                          $endgroup$



                          Digikey sources their parts from the makers and adds a retail mark up.



                          The alibaba seller takes remnants from someone's production run (or possibly salvaged parts, or if you're unlucky counterfeit parts) they don't pay full price.







                          share|improve this answer












                          share|improve this answer



                          share|improve this answer










                          answered 33 mins ago









                          JasenJasen

                          11.7k1531




                          11.7k1531



























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