SKD (Semi Knocked Down) and CKD (Completely Knocked Down) are popular manufacturing strategies where product components are produced in one country, but final assembly takes place elsewhere. In SKD, products are partially assembled before shipping key parts such as screens, mainboard, powerboard and other circuit boards, and wiring to the destination country for final assembly. CKD involves shipping fully disassembled components to be completely assembled in the target market.

These manufacturing models are especially beneficial for countries like Turkey, Vietnam, Indonesia and India, where import duties or restrictions on finished products can be high. Using SKD or CKD helps companies reduce taxes or bypass import bans, as these products are classified as partially assembled or unassembled components. This enables access to high-quality components from suppliers in China while complying with local regulations and lowering import costs.

The advantages of SKD and CKD manufacturing include lower shipping expenses because components occupy less space and weigh less than fully assembled products. Moreover, localized assembly can cut costs and improve supply chain responsiveness. This approach allows businesses to quickly adjust to market requirements and regulations, gaining a competitive advantage in international markets.


The primary reason for CKD shipments, like disassembling a touch panel entirely, is to manage customs. Shipping a product broken down into parts can be a way for the sender to avoid high tariffs. Additionally, CKD shipment and local assembly are beneficial in countries that prioritize local production or have laws/tender requirements favoring national products.

Here are some quik question for CKD and SKD as below. 

Q:How the ifpd(interactive flat panel) inside material looks like?
A:Here is a map for yours quick review. 


Q:Should I choose SKD or CKD?
A:Choose CKD when the main goal is to achieve maximum tariff reduction, comply with strict local content requirements, or establish full local manufacturing infrastructure, and you have the time and capital for complex assembly.CKD are more suitable for big factory have deep and established supply chain locally.

Choose SKD when the main goal is a faster time-to-market, simpler local operations (less technical skill/infrastructure needed), and a balance between cost savings and logistical ease. SKD are more friendly for small or middle size factory to start. 

Q: Is CKD Cheaper than Finished Products?
A: Contrary to a common assumption, CKD is generally not cheaper than finished products for the supplier. The process involves producing and fully testing a finished touch panel first. After testing, it must be disassembled and packed into specially designed cartons and wood cases. This requires more labor costs, time, and packing material.

Q: How the CKD component are packed? Are they well protected? 
A: CKD Touch Panel Components For a touch panel, the manufacturer knocks the product down into four main parts: the LED screen, power board, android mainboard, and T-con board. 

The process involves producing the finished panel, testing it, and then disassembling the power board, android mainboard, T-con board, and OPS connector board. Only the screen remains and is then packaged and shipped in a container. Other electronic parts are put into a strong wood case for air shipping.

Transport and MOQ Challenges The biggest challenge with the CKD strategy is the shipping itself, as the parts must be individually packaged and sent. Any damage or transport delay can disrupt the reassembly process in the importing country. Furthermore, if the order is too small (Minimum Order Quantity - MOQ), the cost for the buyer to build a production line and train workers to assemble the complicated, high-end product becomes prohibitive.