Rebounding demand stimulates switching power supplies sector
Resurging demand from traditional applications and rising orders from emerging uses are prompting China makers of switching power supplies to raise output in anticipation of a 10 percent sales upturn.
Manufacturers are strengthening efforts to secure the country’s position in the global market. Although production declined last year together with a 7 percent growth deceleration due to the economic crunch, China accounts for about 70 percent of worldwide turnout.
The rosy outlook rides on rebounding orders from the communication, PC, instrument, consumer electronics, mechanical, automotive, medical, power system and metallurgical sectors. Adding to the momentum is rising penetration in the fields of industrial machinery and rail transport. The local government’s projects for 3G infrastructure are contributing to the line’s advancement as well. To prepare for output expansion, suppliers are installing new production and testing equipment. Some are building extra facilities to ramp up turnout by 10 percent. A number of enterprises are eyeing a 20 to 50 percent jump in yield in months ahead.
Shanghai Detron Electric & Electronics Co. Ltd can manufacture 60,000 units every month. It invested $280,000 in additional machinery to boost capability by 50 percent. Zhongshan Xiaolan Hui Yang Electric Appliance Fty hopes to maximize its monthly capacity of 1 million units. The company targets an increase in sales from $11 million in 2009 to $17 million this year. The majority of models are for the low-end and midrange sectors. While this trend is expected to continue, a number of enterprises have plans to expand their selection to upscale versions under efforts to boost positioning and consequently margins.
Shanghai Detron, which offers mainly midlevel types, is looking to step up to the high end to widen market reach. It claims to account for 30 percent of the country’s total output of variants used in power systems. Products & prices
China manufacturers offer wall-mount, desktop AC/DC adapter and industrial types of switching power supplies. The first two are typically used in consumer electronics and IT equipment. The last is utilized in communication, power system, rail transport and machinery applications. Units in this segment are available in open-frame or DIN-rail versions, respectively accounting for 60 and 30 percent of turnout. The latter, however, is expected to dominate soon.
Most models are available with single or multiple output voltages, and conform to UL, GS, CE, SAA, EK, TUV and FCC requirements. Suppliers can obtain additional energy-saving and environmental certification on customers’ requests.
Zhongshan Xiaolan Hui Yang has alloted $1 million to acquire the necessary approval, including GS, UL, cUL, BS, TUV, PSE, CB, C-Tick, CB, CE, CCC and CQC. The maker’s units are also compliant with RoHS, PAHS and REACH.
The key materials used in producing switching power supplies are the ICs, capacitors, transformers, PCBs and plastic. Collectively, these represent an estimated 70 percent of total costs. The chips are mainly sourced from foreign providers such as ON Semi, STMicroelectronics, Fairchild and TI. Digital ICs integrated with PFC and PWM functions are adopted for power management. The other inputs can be purchased locally.
Despite rising material and labor costs, tight competition has restrained players from increasing their prices. Some are even predicting a 5 percent drop in months ahead.
China-made switching power supplies are on average quoted 10 percent less than those from foreign vendors.