USB power adapters

	Hong Kong-based EDP Worldwide’s EEC-133(b) universal AC/DC adapter has built-in plugs for over 150 countries

Mainland China, Taiwan and Hong Kong AC/DC adapter manufacturers may be focusing on different markets, but all have been facing the same challenges, including rising costs of raw materials, conforming to new environment-friendly standards and escalating competition. Across Greater China, makers are rolling out new adapter models with compact form factors, higher efficiency and lower power consumption.

Mainland China is regarded as the world’s largest AC/DC adapter manufacturing base, rolling out both linear and switching AC/DC adapters. It is estimated that AC/DC adapters account for more than 60 percent of the country’s overall power supply industry with switching AC/DC adapters dominating its AC/DC adapter output in 2008 with more than 70 percent share. Switching AC/DC adapters’ bigger chunk in the production volume is driven by it popularity in midrange and high-end applications.

Interviewed Taiwan companies disclosed that their main challenge is competing with mainland China makers, particularly those who produce products with a power output of 30W and below. Cost of copper has increased by 20 to 40 percent in 2008, prompting many companies, particularly in Taiwan, to increase their quotes by 5 to 15 percent until H1 2009. Despite all these challenges, Taiwan suppliers project at least a 10 percent growth in 2008.

Some Taiwan makers have either left the market or shifted to producing high-end models with higher profits. Others have introduced new products that cater to the medical industry and industrial PCs. Due to surging costs of materials and intensified price wars, most Taiwan-based manufacturers have started shifting from linear AC/DC adapters to switching adapters. Makers on the island have been implementing design upgrades as well as acquiring environment-friendly certificates to edge out competition. In response to a new California Energy Commission (CEC) regulation and EUP directives, many Taiwan companies have started focusing their R&D on decreasing power consumption and enhancing power efficiency. CEC requires power efficiency to reach 85 percent in 2008 and power consumption, less than 0.5W in standby mode. Taiwan makers currently conform to those standards.

Despite their global market lead, mainland China makers struggle with competition, specifically with other Asian regions that have the capability to produce high-end adapters. Thus, makers are adopting more advanced technologies to develop more compact, high-efficiency and lead-free models targeted at the midrange and high-end markets. Increasingly being produced on the mainland are energy-saving switching adapters that feature power factor correction (PFC) and pulse width modulation (PWM) technology—with both features contributing to energy efficiency. The central government specifically requires all power supply models for consumer electronics (CE) and computer applications to have an integrated PFC circuit.

There are more than 40 suppliers of AC adapters in Hong Kong. Global demand is stoked by the double-digit annual growth in global shipments of popular electronic gadgets such as MP3 players, digital cameras and mobile phones. Based on Hong Kong customs statistics, the territory exported 785.7 million power supply products worth $2.4 billion in 2007. Aside from AC/DC adapters, the shipment data included static converters, battery chargers, rectifiers, diode rectifiers and electric inverters.

Most small and midsized suppliers in Greater China provide entry-level models and cater to OEM requirements, distributors and retailers. Leading suppliers with strong R&D capability and extensive manufacturing background offer a wide selection of models from unregulated linear power adapters to high-power switch mode power supplies (SMPS) with PWM circuitry, and are able to provide ODM and OBM services. All production activities take place in mainland China, mainly in Guangdong province.
Energy efficiency emphasized in mainland China, Taiwan
Hong Kong highlights user-friendly features
Safety certificates boost product value
Price range continues to fluctuate

	The MPU63 series from Taiwan's Sinpro is suited to medical applications

Adapters with energy-saving and high-efficiency features are aimed at both component buyers and end-users, mostly of switching AC/DC adapters. According to a general test on different power levels (<250W), the efficiency of linear adapters is from 15 to 76 percent and averaged at 49 percent, while the figure for switching adapters is from 17 to 88 percent and averaged at 64 percent. Meanwhile, the no-load power of linear adapters averaged 1.02W, while that of switching adapters was 0.92W. The difference explains why most mainland makers switched to the production of switching adapters.

A typical AC/DC adapter made in mainland China has a power range of 5W to 90W. Input voltage is a universal 100V to 240V, input frequency is from 50Hz to 60Hz, and general output voltage is from 5V to 30V. Basic features include short circuit, over voltage and over-current protection, thermal shutdown capability, built-in EMI filters, compact design, LED indicator, and low standby power consumption. In addition, some manufactures have begun to offer products that follow Energy Star’s and the EU’s Energy-using Products (EuP) regulations.

Product development in mainland China is also moving toward small, lightweight form factors with high power density, modularization, wider output range and higher input power factor. Makers are developing switching adapters with multiple output options, making it a universal adapter that can supply power to more than one type of device. One such product is the universal USB AC-DC adapter, which is expected to become popular in the market. The universal USB adapter can supply power and charge all kinds of portable devices by using different power plugs, and the output voltage can be changed manually from 5V to 8.4V.

Taiwan suppliers are also developing adapters that feature PFC and PWM—the latter being a requirement for all new products that support higher than 30W. Taiwan manufacturers, specially those that export to Europe, are releasing more new products adopting PFC, but the high cost of adopting such technology hinders makers from adopting it for all their adapter lines.

The bulk of Taiwan output is mainstream for IT products and consumer electronics. However, since profit margins are increasingly becoming leaner for these applications, some companies are instead targeting other applications such as portable electronics. Many companies are shifting to niche markets such as industrial equipment,medical electronics and solar panels.

FSP Technology Inc., a Taiwan company, focuses on switching AC/DC adapters that feature 120W or more power output—mostly for industrial PCs and medical equipment. According to the company, which develops high-power adapters, entry-level industrial PCs like POS systems have started using switching AC/DC adapters for power solutions. FSP has introduced 120W to 180W models, and will be releasing 220W units by 2009. It started catering to the medical market in 2007 and now offers 15W to 150W adapters. It will be introducing 180W units for application in medical products by the end of the year.

FSP’s new products comply with CEC and NSTAR Level 5 standards, which regulates the power efficiency and power consumption of new products. It also offers peak power adapters for motorized products such as industrial printers. Adapters for motorized products can support peak power with 2.5 to three times higher than normal mode. The company has introduced an adapter that supports 100W power output at normal mode and 250W at peak. It is planning to develop models with smaller power output in the short term.

Yng-Yuh Electronic Co. Ltd provides AC/DC adapters with 3W to 120W power output. Its major products are for IT peripherals. Units with 15W power output and below account for about 50 percent of Yng-Yuh Electronic’s total output. The company also produces linear AC/DC adapters, which account for 30 percent of the output. Most of Yng-Yuh Electronics’ new switching adapters feature PWM design, but it hasn’t introduced adapters with PFC feature. The company’s R&D focus is also on conforming to environment-friendly standards. New switching adapter models comply with CEC standards, and the company provides CEC-compliant linear adapters upon request. It has also developed a changeable plug, which requires higher safety standards.

Sinpro Electronics Co. Ltd’s R&D direction is toward enhanced power efficiency, limited power sources (LPS) design, low operation temperature and units for medical application. The company’s AC/DC adapters can support power output from 15W to 130W. Its patented LPS design has better fire-resistant performance, and is claimed to reduce material costs for device makers. To veer away from the competitive CE market, the company has released a series of AC/DC adapters for medical equipment. The MPU63 series of AC/DC switching mode power supplies provide 63W of continuous output power. The company notes that the new series is suited for hospital devices and many other medical applications.

All of Sinpro’ models meet FCC Part-18 class B and CISPR-11 EN55011 class B emission limits and are designed to comply with UL/c-UL(UL 60601-1), TÜV/T-mark (EN 60601-1) and new CE requirements. Its products are also CEC- and Energy Star-compliant.

	The MW7NU10GS switching AC/DC adapter from Minwa, Hong Kong, features a USB outlet

Minwa Electronics Co. Ltd’s AC adapters come in switching, linear-regulated and linear-nonregulated series. These can be further subdivided by usage—multiple output voltage, single output, PWM, AC/DC primary switched, regulated, nonregulated, plug-in, desktop and traveler models.

The MW7NU10GS from Minwa is a switching AC adapter with USB outlet. The plug-in device supports 100-240V AC 60/50Hz input and 5V DC output at 1,000mA maximum charging current. It comes in UK, SAA and AF input plug versions, and black and white colors.

Minwa’s MW9996 is designed for the Nintendo DS Lite. It features 100-240V AC input and 4.5V DC, 320mA output. EK-Mark, GS, CE, C-Tick, CB, PSE, cETLus and V# approvals are available. Minwa offers more than 40 housing designs for AC adapters, including rounded plug-ins and desktop models with handle. It also offers a rotary input plug that allows for easy connection even at awkward angles; and slide, instead of rotary, switch for universal adapters. As an added service for a minimum quantity of 3,000 units, customers can also choose among 22 metallic finishes and 19 housing colors.

The BH-15001 from EDP Worldwide Co. Ltd is a 2-in-1 100-240V AC adapter and 12V DC car charger with retractable connectors. It features short circuit protection, 1,200mA maximum load and 120cm cord. It is compatible with MP3 players, PMPs, iPods, mobile phones and handheld gaming devices. EDP Worldwide’s EEC-133(b) universal adapter comes with multiple plugs that make it suitable for use in over 150 countries. It supports 90-250V AC input voltage, 100-230V AC output and ±5V DC 500mA output via USB. It features surge protection against power spikes and simultaneous connection of an AC appliance and a portable electronic gadget.

EDP Worldwide’s AC adapters are mostly integrated with basic safety features such as short circuit protection. Each model also ships with required certifications and approvals. Rather than focusing on further electrical improvements, the company’s R&D team strives to strengthen product differentiation by developing user-friendly designs. Some of its latest designs feature multiple retractable plugs on just one housing unit. It also offers multiple designs of travel chargers and AC adapters with USB plugs.

Richfield Electronics (China) Ltd targets travelers and portable electronic gadget users for its AC adapters. Its TC-USB, for instance, is a suitable travel accessory. It is compatible with iPods, mobile phones, PDAs, MP3 players, PMPs, handheld gaming devices and digital cameras. It is available in all plug types and 110-240V AC input.

The DC T1T, also from Richfield, is a travel AC adapter that is suitable for Sony digital camera models DSC-T1, T11, T3, T33 and M1. The TCK 3008, on the other hand, is an AC adapter kit for Sony PlayStation Portable (PSP). It supports 100 -240V AC, 50-60Hz, 0.2A input and 5V DC, 1A output. Changeable plugs for the United States, European Union, United Kingdom and Australia are included.

Richfield can develop AC adapters for popular brands of media players such as the Creative Zen, iRiver and Sansa, as well as specific models of PDAs and smart phones. It also offers a dual USB option. With its product catalog brimming with models, Richfield has slowed down product development for new AC adapters, but it continues to welcome customer modifications and customization.

	Richfield, Hong Kong, offers the SC-9T is a travel AC/DC adapter for the iPod

Established in 1993, FSP specializes in power supplies. AC/DC adapters account for 20 percent of the company’s total output. The company’s two production sites in Shenzhen and Wuxi in mainland China both manufacture AC/DC adapters. FSP aims to produce 10 million AC/DC adapters this year. Its products have passed several international quality standards, including UL, CTDP, CSA, TÜV and NEMKO. The company has ISO 9001 and ISO 14001 certificates.

Yng-Yuh Electronic was set up in 1976 and has become an ODM/OEM-oriented power supplies maker. Its product line includes AC/DC adapters, power transformers and battery chargers. AC/DC adapters account for 70 to 80 percent of the output. The company’s factory is located in Shenzhen, Guangdong and produces 50,000 to 100,000 units every month. In 2008, the company expects output to grow by 20 percent. Europe, its largest export market, accounts for half of production.

Sinpro was founded in 1995. Its products include AC/DC adapters, open-frame power suppliers and DC-to-DC converters. AC/DC adapters account for 90 percent of its total production. Its products are mostly for IT equipment, medical devices and industrial equipment. The manufacturer maintains a factory in Taiwan and one factory in mainland China. Every month, it produces about 130,000 AC/DC adapters. About 85 percent of the company’s production is exported mostly to clients in Europe and North America. It has ISO 9001 and ISO 14001 certifications.

Hong Kong-based EDP Worldwide has been manufacturing power supply and electronic novelty products since 1998. Its factory in Shenzhen, Guangdong, occupies a 1,382sqm floor space and employs 350 workers. It can turn out 250,000 units monthly.

EDP Worldwide accepts customer specifications and assures quick turnaround time by virtue of its in-house plastic injection molding, mold design and fabrication, and tooling facilities. Product assembly, silkscreen printing, pad and offset printing, and spray-painting are also carried out inside the company’s factory.

Founded in 2001, Richfield of Hong Kong specializes in A/V cables and AC adapters. Its 5,450sqm factory in Shenzhen, Guangdong, in mainland China employs more than 100 workers and has a production capacity of 100,000 units per month. FM transmitters, car chargers, audio cables and earphones are also produced at the factory. Richfield has five R&D engineers based in Hong Kong.

Also a Hong Kong enterprise, Minwa has been operating its own industrial park in Huizhou, Guangdong, since its founding in 1977. The vertically integrated, ISO 9001:2000-certified factory has its own R&D, tooling, injection molding, metal stamping, cable fabrication and coil winding departments, as well as an ISO 17025-accredited laboratory for LVD safety tests. In addition to AC adapters, switching power supplies, battery chargers, audio and game accessories, multimedia accessories, car accessories, output connectors and converters are also produced at the factory, which has a monthly production capacity of 3 million units. About 100 engineers employed at the factory coordinate with clients on OEM and ODM projects.

As one of the leading power supply product makers in Hong Kong, Minwa is able to ship AC adapters with diverse international approvals, including cULus, cASus, CE, GS, ETL, C-Tick, Q#, PSE, CB scheme, E-Mark, Argentina S mark and EK Mark. Its SMPS series of AC adapters comply with strict CEC regulations for energy loss reduction.

Although most adapter suppliers in mainland China are small- and medium-scale enterprises, and only a few can manufacture 500,000 or more, most comply with international safety and quality standards required of electronics and components exporters.

There are over 1,000 makers in mainland China engaged in the production of AC/DC adapters, and nearly 60 percent are foreign-owned or foreign-invested companies. Factories are located in Guangdong, Zhejiang and Jiangsu. It is estimated that the overall production of AC/DC adapters on the mainland in 2008 will reach 5.8 billion units, increasing by 11 percent over 2007. The same growth rate is expected in 2009. The IT industry, consumer electronics, A/V devices, office automation devices and industrial equipment are the major markets of mainland China’s AC/DC adapters.

Mainland China companies expect a 10 percent increase in production this year. Jiangsu Chenyang Electron Co. Ltd said that raw materials and components account for about 70 percent of the entire production cost of AC/DC adapters. About 90 percent of the raw materials and components, including ICs, capacitors, plastics, transformers, diodes and casting, are sourced locally. However, some key components such as power ICs may be sourced overseas upon buyers’ request.

For high-end switching AC/DC adapters, ICs are the most important component and may account for as much as 50 percent of overall cost. These chips usually come from Fairchild Semiconductor, Texas Instruments, ON Semiconductor, STMicroelectronics, Power Integrations and Infineon Technologies.

In the past few years, the cost of raw materials like copper, iron and plastic has increased significantly. The makers that source locally have to face higher costs because of domestic inflation. As a result, several companies have established long-term supply relationships with their partners to secure favorable prices.

Unlike most Taiwan, Hong Kong or foreign-owned makers that are more focused on producing midrange and high-end products, mainland makers target the entry-level and midrange sectors. However, starting this year, companies will be expanding their product lines to include high-end models to maintain high profit margins. Fifty percent of makers’ output are entry-level models, and midrange and high-end units account for about 30 percent and 20 percent, respectively.

	Taiwan's FSP offers the 180-AAAM1, a 180W AC/DC adapter that complies with CEC, Energy Star and EuP standards

Mainland China-based companies export a wide range of low-end to high-end models. Low-end AC/DC adapters are priced from 50 cents to $2.50 each. Midrange models are quoted from $2.50 to $10, and high-end adapters are generally priced $10 and above.

HCT Electric Co. Ltd said that price is mostly determined by the specific requirements dictated by customers; power rating and safety approvals also determine the price quotes. An adapter with high output power is generally priced higher. Models with add-on features such as international approvals, RoHS and WEEE compliance, EMI, EMC features and multiple output are also quoted higher.

About 53 percent of adapters from the mainland is shipped to Europe, while 30 percent goes to the US, and 13 percent is delivered to markets in Asia-Pacific. Export prices are seen to increase by no more than 10 percent in 2008 and 2009, as a response to overall cost increase.

North America and Europe are Hong Kong suppliers’ main export markets for AC adapters. Richfield’s customers consist of retail chain stores, distributors and system integrators. It exports all its output, with about 70 percent going to North America and Europe, and the rest to Southeast Asia, Australia, Japan and the Middle East. It requires a 500- to 1,000-unit minimum order, though first-time customers can order fewer units.

EDP Worldwide’s AC/DC adapters are produced exclusively under OEM and ODM arrangement on a per-order basis. The company’s customers mostly come from the retail and promotions buyer segments in North America and Europe.

Minwa cooperates with OEM and ODM customers, as well as buyers of its Minwa-branded products, from Europe and North America. Its minimum order requirement is 2,000 units.

To keep their prices competitive, suppliers are putting down long-term investments toward the automation and expansion of the supplier base. Most, however, are unwilling to replace reliable components with lower-cost, inferior components. In general, prices have increased by 5 to 10 percent over the last 12 months.

Entry-level AC/DC adapters from Hong Kong range from $1 to $3, while high-end models are quoted at more than $10.