Uninterruptible power supplies

Advances in the semiconductor field are driving product enhancement. DSP, PWM and N+X redundant technology are at the forefront of design development.

China suppliers are enhancing the features of their uninterruptible power supplies (UPS) and adopting advanced technologies to better position their products in the global market. Product development efforts revolve around improving reliability and efficiency, and incorporating energy-saving features. Makers are also acquiring quality certifications to strengthen their export business.

Suppliers ride on the growing demand from developing countries and regions to bolster the line, with some companies projecting more than 15 percent increase in export sales due mainly to these markets. At present, India, the Middle East, Africa, Southeast Asia and other developing regions are the major export destinations of China’s UPS products. Some companies will explore potential markets in South America and Australia in 2009.

In preparation for an increase in demand from some export markets, several suppliers have announced plans to expand their production capacity. Some makers are building additional manufacturing plants, and others are raising their capacity utilization rate to accommodate more orders.

Bracing for severe price competition and the continuing appreciation of the yuan—which slowed down the country’s UPS industry growth in 2008—makers are exploring alternative strategies to stay afloat. Many are improving cost management, with some closing some of their production lines to reduce operational costs. Several companies are implementing a freeze-hiring policy until demand spikes notably and production volume requirement rises. A few have begun reducing material storage time to avoid risks associated with fluctuating material cost.

Advances in semiconductor technologies are driving product development in China’s UPS industry. The release of advanced IGBTs and MOSFETs that replace common power MOS tubes has enabled suppliers to launch UPS that support high voltage and current values.

R&D initiatives are generally geared toward high efficiency, power, reliability and stability. Makers are also developing more energy-saving and environment-friendly products. Some suppliers are adopting DSP, PWM, N+X redundant technology and modular design to improve product performance.

Companies such as Guangdong Zhicheng Champion Group Co. Ltd have released UPS with modular design. The latest model from Guangdong Zhicheng is a modular parallel redundant UPS system composed of a display module, power module and bypass module. It incorporates DSP, ASIC and high-power IGBT. The modular design, which aims to reduce maintenance cost and save space, adopts N+X redundant technology that provides flexible options for expansion.

The product supports triple phase-in, triple phase-out; triple phase-in, single phase-out; single phase-in, single phase-out; and single phase-in, triple phase-out configurations. It delivers 96 percent efficiency, 0.99 power factor and 100kVA maximum capacity. Modules can be inserted in or pulled out from the product without the need to shut down the modules.

Shenzhen Kstar Science & Technology Co. Ltd has released a UPS that adopts DSP and double conversion online technology. The product supports 20kVA to 60kVA capacity, LCD indicator and alarm. It can operate for 60min under 110 percent loading. Input TDHI is less than 3 percent.

The company has also launched high-power online UPS that is hot-swappable. It comes in a 19in standard cabinet. It features 120kVA maximum capacity. It has short-circuit, surge and overload protection.

	Mainland China's Shenzhen Kstar has released high-power UPS models that adopt high-frequency double conversion online

China’s UPS supply consists of offline, online and line-interactive models. Offline products currently account for more than half of total output. Online and line-interactive units represent 40 percent and less than 10 percent of the output, respectively, of production.

However, thinning margins in the offline sector is expected to push more makers to explore online UPS in 2009. Some suppliers are considering shifting production focus to online UPS and decreasing output of their offline units. Offline UPS is more labor-intensive and generates lower margins than online and line-interactive models. In general, gross profit from offline UPS is estimated at 8 percent, and that from online and line-interactive UPS is 13 percent.

Offline and line-interactive UPS from China typically have a capacity below 1.5kVA. These products are widely adopted in personal PCs, workstations, printers, tax equipment, servers and satellite receivers.

Online products have 1kVA capacity and are mainly used in networking equipment, rack servers, Internet data centers, small to medium computer data centers, and telecom equipment.

Irrespective of product type, mainstream UPS from China have 110VAC to 300VAC input voltage, 50Hz or 60Hz nominal input frequency and 500VA to 300kVA capacity. Models usually incorporate ports for fax machines, modems and telephones. Products are powered by maintenance-free, lead-acid batteries with 12V, 24V or 48V voltage.

Standard features include zero transfer time, self-test, and overload, short-circuit, overvoltage and low-voltage protection. Units usually have a cold start function, restart function and audible alarm. Many models comply with SGS, CE, UL and FCC.

Products go for as low as $20 and as much as $30,000, depending on materials used. Materials account for 60 to 80 percent of the total cost.

Suppliers are hoping to stabilize prices of low-power UPS in 2009. Prices of medium- and high-power models, on the contrary, are expected to decrease in the coming months due to fierce competition.

The UPS industry’s weak performance in the previous year prompted China makers to seek alternative strategies to stay in business. Many makers are improving cost management by curtailing production to reduce operational costs, while others are implementing a moratorium on personnel hiring until demand picks up notably and production volume requirement rises.

Growing economic challenges have also driven China makers to become more conservative in their raw materials sourcing to avoid risks associated with fluctuating material cost.

China has about 200 suppliers of UPS. Some of these companies used to specialize in batteries, inverters, transformers, mobile power supplies and emergency power supplies, and branched into UPS to leverage large demand and higher profit margins. More than 50 percent of these companies total revenue now comes from sales of UPS.

Most suppliers are located in the Pearl River Delta and Yangtze River Delta, specifically in Guangdong, Jiangsu and Zhejiang provinces. Guangdong is the largest production hub and export center with more than 80 percent share of shipments. Some of the leading UPS makers are Xiamen Kehua Hengsheng Co. Ltd, Guangdong Zhicheng, Guangdong East Power Co. Ltd and Shenzhen Kstar.

Large-scale UPS makers typically own advanced production and test equipment. A few have their own SMT production line, center laboratory, and inverter and battery factories. These suppliers also cooperate with universities and overseas customers for product research to strengthen their R&D capability. Several large players have an annual sales revenue exceeding $100 million. These makers usually employ more than 1,000 workers and can produce more than 40,000 units a month.

Midsize suppliers generate $15 million to $100 million in annual revenue and have the capacity for 10,000 to 40,000 units every month. These makers typically have a workforce of 200 to 1,000 personnel. Small-scale companies generally have fewer than 200 employees and can manufacture less than 10,000 units a month. Revenue does not exceed $15 million a year.

Regardless of size, most makers conduct assembly, auto insertion, in-circuit test, ATE test and design processes in-house. They usually purchase electronic components locally, but source ICs and other key components from Japan, the United States and Taiwan.

Guangdong Zhicheng, for instance, owns an SMT production line, automatic soldering machine, CNC lathe and automatic testing machines. The company has set up a standard center laboratory equipped with an EMC dark room and various testers, including high- and low-temperature, drop, RoHS, ESD and surge testers. It has also formedlong-term cooperation with Huazhong University of Science and Technology. It has established a center for high-end product research and new technology applications. So far, the company has secured more than 20 patents and software copyright.

Prostar (China) Science & Technology Development Co. Ltd is cooperating with an Italy-based UPS enterprise on developing parallel redundant UPS systems.

Hong Kong’s 2008 shipments of UPS posted a year-on-year decrease exceeding 30 percent. Customs data report total shipment volume for 2008 at 70 million units, with re-exports accounting for the bulk of shipments. Export value totaled $400 million.

The downturn can be attributed to suppliers’ decreased interest in the product line. No supplier in Hong Kong currently focuses primarily on UPS. In addition, the region’s UPS supply is dominated by mainland China suppliers that have established sales offices in Hong Kong and trading firms that distribute major foreign brands.

One factor driving suppliers away from the line is the cutthroat price competition. Makers can secure healthy profit margins only through large-volume shipments. As many of Hong Kong’s suppliers are small companies, most prefer high-value-added power supply products that bring in better margins even for small-volume sales. As such, most power supply makers are focused more on power adapters, battery chargers, transformers, inverters, switching power supplies and generators.

Nevertheless, some suppliers still recognize the importance of a UPS function and incorporate this into their products. Green Energetic Ltd, for instance, has launched products that integrate UPS function. The company’s i-ChargeVerter is a power inverter and gel/AGM lead-acid battery charger that features a virtual offline UPS system with 5ms to 8ms switching time.

Another electronic power battery with offline UPS from Green Energetic is the SmartGen emergency power system. It features TranSwit technology to automatically switch to an internal power source during power interruptions. It integrates a Brillhaus 200Ah sealed lead-acid battery and comes in 600W, 800W, 1kW, 1.2kW, 1.5kW and 2kW AC output versions. Its automatic switching mode supports 5.5ms to 18ms transfer time.

Makers of UPS in Taiwan are avoiding tight price competition in the low-end sector by focusing on high-end UPS for niche applications. Suppliers are adding value to their products to boost margins and explore potential markets.

Beam Tech Electronics Co. Ltd, for instance, has released its CS-L series designed primarily for cable TV systems. The long-running model has adjustable voltage sensitivity and steady signal performance. It features wide battery compatibility and a built-in thermal control cooling fan. The SI series, on the other hand, is an internal UPS that can be mounted into a PC case using a 5.25in drive bay. The product is easy to install and has protection for overload, overheating and short circuit.

Beam Tech has also launched products designed for home applications. Its Home Inverter series, for example, combines the functions of an inverter and a UPS, making it possible to be connected to home power lines. The product incorporates automatic on/off function and adjustable power level. It is available in wall-mount and tower configurations.