Bert Liu

Manufacturing in Taiwan. Notes on factories, systems, and supply chains.

Why Smart Brands Don’t Build Everything

Manufacturing isn’t a single process. It’s a system.

A part can move through die casting, surface prep, X-ray inspection, CMM measurement, painting, masking, packaging, and logistics before it is ready.

The real question for hardware brands is not whether to outsource everything or build everything.

It is what you should control directly, and what you should scale through trusted partners.

Still improving the filming and audio, but this is the start.

Scaling Manufacturing Without Operational Debt

Manufacturing scaling post image 1.

I’m a big fan of engineering content on YouTube, and what Hacksmith built is impressive.

This isn’t an insider case study. It’s just how I think about manufacturing scaling decisions.

A hit product can validate demand. But it does not automatically justify taking on a much heavier operating model.

That’s where things can shift from product momentum into operational debt: machinery, hires, management, training, QC systems, maintenance, internal systems, and monthly operating burn.

To me, there are usually three paths: full in-house, full outsource, or the middle path — validate trusted suppliers, forecast demand, and keep only critical layers in-house.

That middle path is often the smartest one for businesses whose original engine is still brand, product, and audience.

The goal isn’t to outsource everything or build everything. It’s to know what to protect, what to outsource, and when to scale each layer.

If you’re thinking through similar manufacturing scaling decisions, feel free to reach out.

Reshoring Doesn’t Mean Bringing Everything Back

Reshoring doesn’t mean bringing everything back.

What parts of manufacturing are actually critical, and what parts are not?

Some things may need to stay close to home:

  • final assembly
  • sensitive testing
  • software / electronics integration
  • critical dimensions
  • anything that protects real IP

Other things may still be better handled by the right specialists:

  • castings
  • standard CNC
  • paint / surface finish
  • injection molding
  • sheet metal fab
  • non-critical subcomponents

So I don’t think the answer is full outsourcing or full reshoring.

I think the real competitive advantage is knowing what to protect, what to outsource, and how to split the risk without losing the product.

Precision Is Not One Process

Bert standing in a workshop beside large die-casting equipment and parts.

Precision looks very different depending on how a part is made.

On one end: thin-fin copper heat sinks (stamped at high volume) > tight fin spacing (pitch control) > tool wear over long runs > consistency at micro scale.

In some cases, final adjustments are still done by hand - using precision tools to align and assemble components into a larger structure.

On the other: large aluminum die-cast housings > material flow > thermal behavior > structural integrity at scale (porosity, leak paths).

Both require precision - but in completely different ways. And what is often overlooked is this: precision does not come from a single process.

It comes from how processes stack - as a system. Casting for shape at scale, then machining where tolerances actually matter.

That is where real manufacturing capability shows up. Not all precision is created equal.

Manufacturing Is a System, Not a Location

I’ve spent the past few years around manufacturing across Taiwan and China, and one thing that stood out is how misunderstood it is.

Most people think it’s about choosing a country. China vs Vietnam. Mexico vs Asia.

That’s the wrong way to think about it. You don’t choose a country. You design a supply chain system.

China → scale and ecosystem depth
Vietnam → labor advantage and cost optimization
Mexico → proximity and logistics
Japan → ultra-high precision and systems
US → IP ownership, advanced manufacturing, and high-value assembly

Taiwan sits in a layer most people overlook: the balance between precision, flexibility, and consistent execution. Not the cheapest nor the most extreme.

But often the most reliable part of the system when things actually need to work.