When designing wireless IoT products, one of the most important strategic choices is whether to build around a custom System-on-Chip (SoC) or to buy a pre-certified wireless module. This decision influences how quickly your product reaches the market, how predictable your costs will be, and how much risk your organization carries during certification and scaling.

Trade-Offs of SoC vs. Module Approaches

Building with SoCs offers flexibility and potential long-term savings, but requires significant upfront investment. Companies must secure specialized RF engineering expertise and dedicate resources to testing, debugging, and compliance.

PCB layout and antenna optimization often require multiple iterations, which can add weeks or even months to schedules. Certification processes must be managed separately for each market, and changes in regulatory requirements can add further delays and costs. Perhaps the largest hidden cost comes from time-to-market delays that can extend product launch timelines, translating into lost revenue opportunities.

Buying modules, on the other hand, reduces complexity and accelerates deployment. Modules are pre-engineered with optimized RF performance and pre-certified, allowing companies without in-house RF expertise to move quickly. This approach reduces upfront investment, simplifies procurement of components, and provides greater predictability around regulatory compliance.

For low- to medium-volume production, modules typically represent the most cost-effective and least risky path. Even at higher volumes, many companies continue to favor modules because of their miniaturization advantages,  enabled by compact, pre-integrated design, and more reliable certification outcomes.

Where the Breakeven Point Lies

The breakeven point between modules and SoCs depends largely on scale. Modules tend to be more economical at lower production volumes, while SoCs can become attractive when production reaches very high levels where per-unit savings outweigh the upfront investments and risks. Importantly, breakeven analysis should not be based on component costs alone—hidden costs, certification challenges, and delayed revenue must all be factored into the decision.

For many organizations, the most effective strategy is hybrid: begin with modules to reduce development risk and achieve faster market entry, then migrate to SoCs once scale justifies the transition. Krasamo IoT Developments support our clients’ software portability between modules and SoCs, ensuring that early investments are protected and scalability is preserved.

A Strategic Decision Guided by Expertise

The decision to use a wireless module or a SoC carries a high degree of complexity. It depends not only on production volumes, but also on market timing, risk tolerance, and available resources.

Modules often accelerate deployment and reduce risk, while SoCs can offer long-term optimization at scale. Protecting your investment through this evolution is where our deep expertise in creating portable, high-quality firmware and embedded software becomes critical.

The best outcomes come from treating this as a strategic business choice rather than a purely technical one. Krasamo is an IoT development company that guides clients through these tradeoffs, helping them evaluate suppliers and architectures while ensuring that software investments remain protected as products evolve.

This collaborative journey is structured within our Krasamo Discovery Process, the first step to turning your complex IoT vision into an actionable plan.

Learn more about this topic:

• AN933.2: EFR32 Series 2 Minimal BOM: A detailed guide to Bill-of-Material (BOM) and cost-optimized solutions for an SoC.
• AN928.2: EFR32 Series 2 Layout Design Guide: Best practices and guidelines for creating the physical printed circuit board (PCB) layout.
• Six Hidden Costs in a Wireless SoC Design: A strategic whitepaper that provides a powerful business-level analysis of the trade-offs and hidden costs associated with choosing a wireless SoC over a module.