DC contactors

Home appliance, portable electronics, lighting, PC and industrial applications drive product development. Suppliers further enhance key specifications.

Makers of power connectors in China do not expect technological breakthroughs in the near term in this mature line. Product development work in 2009 will largely be driven by mainstream applications, although companies will continue to improve product performance and boost their customization capability.

The industry is buoyed by applications in home appliances, portable electronics, computers and peripherals, industrial equipment and devices, and lighting products. China produced 50 to 60 billion connectors, plugs and switches in 2008, securing its place as the world’s third-largest manufacturing hub for these products. Demand from the automotive sector has also been rising. The country’s power connector segment sustained annual growth of 5 to 10 percent in past years.

Power connectors account for 20 to 30 percent of aggregate supply, with sales last year reaching $1.52 billion, based on estimates from China Electronic Components Industry Association (CECA) statistics.

AC and DC plugs make up the bulk of the country’s power connector exports, followed by IEC connectors. Although suppliers also export Molex, Berg, AT and ATX motherboard and SATA power connectors, these lines are dominated by foreign-owned companies in China.

The supplier base comprises about 400 makers, most of which are established manufacturers of other connector types and switches. Factories are mostly clustered in Shanghai, Jiangsu, Zhejiang and Guangdong provinces. Many of the world’s largest power connector makers, including Molex and Tyco, have factories in Guangdong, where most of the new entrants usually set up shop initially.

The export-driven industry ships 60 to 90 percent of output to Europe, North America, East and Southeast Asia, and the Middle East. The global financial crisis set off a slump in exports but suppliers are positive that the downswing will not exceed 10 percent. Their immediate target in 2009 is to keep the export volume at 2008 levels and slowly work their way up to a 5 percent growth in the coming year.

	The SC50-BK battery connector from mainland China's Suzhou Dostar has 50A rated current and 600V rated voltage

Miniaturization is a strong trend in the power connector industry. Suppliers are also enhancing thermal dissipation in compact form factors, with some companies achieving high current densities of up to 350A per inch. New rollouts are typically resistant to leakage, shock, dust, fire, water and even lightning.

Some makers produce new IEC connectors integrating a line switch, fuse holder and circuit breaker. Others have released models with special locking mechanisms and industrial-grade housing. For battery connectors, makers are increasingly adopting pogo pin connection to enhance contact performance.

Companies are adopting compression technology rather than SMT, which reduces damage to the PCB. The traditional production technique is lathe processing, but stamping molding process and partial electroplating are increasingly adopted to achieve stability.

Makers implement stringent QC to ensure high quality. Products generally conform to VDE, CSA, CE, SEMKO, DEMKO and NEMKO. Compliance with RoHS and WEEE, and ISO 9001, ISO 14001 and OHSAS 18001 requirements is also standard. Makers are aiming to secure quality certifications that will allow them to export to Brazil, Israel and South Korea.

Power connectors from China, especially entry-level and midrange products, primarily compete on price. Suppliers claim that aside from lower quotes, the quality of their products also propels export sales, which is why some of their biggest ODM clients include Philips and Sony.

After 2004, prices of China-made power connectors have declined at an estimated 10 percent yearly. Today, AC and DC plugs sell for $0.14 to $1.40. Battery connectors list from $2.85 to $8.57, and IEC connectors, $0.14 to $2.85. With the costs of copper and other raw materials continuing to decline, suppliers forecast another 5 percent decrease in 2009. If competition intensifies and the economic crisis worsens, some companies said they might lower quotes by up to 10 percent.

To reduce production costs, most companies source raw materials and components for entry-level and midrange power connectors from foreign-invested suppliers on the mainland and in Taiwan. Makers of high-end units use mostly imported materials, plastics and copper alloy in particular.

Cost streamlining and full automation remain top priority for China companies, most of which operate at 60 to 70 percent of capacity. Many tier-one companies have invested in imported production and test equipment, including high-speed punching, high-precision plastic injection, stamping and molding machines. Companies that specialize in entry-level and midrange products, however, source their production equipment from joint ventures or foreign-owned companies based on the mainland.

Hong Kong has about 20 suppliers of power connectors that also produce power sockets, terminal blocks, industrial power plugs and power supply connectors for personal computers.

Many companies also make related electronic components, including switches, card connectors, jacks, power supply cords, multimedia connectors and A/V cables. Most makers are equipped with tooling, parts processing, electroplating, punching and forming machines to complement assembly lines.

DC versions currently dominate Hong Kong’s supply of power plugs. AC plugs mostly come from power cord makers. As some power connector suppliers are also experienced makers of A/V connectors, hybrid power+low-level signal connectors, which are available only from major brands, may become available from more local makers in the coming months.

Makers are concentrating on reducing connector footprint and weight. The miniaturization trend in many electronic products will continue to influence designs in this line.

Higher performance and current rating are also emphasized in product development. More companies are targeting higher current rating without enlarging the power connector’s housing through the use of modular designs. However, suppliers will have to resolve heat generation issues resulting from the use of larger contacts. Thermal management is implemented through design modifications, including the addition of vents to increase airflow inside the connectors.

To boost demand, which has started waning since Q3 2008 because of the economic crisis, more companies are projecting price reductions in the coming months. However, makers need to balance this with rising costs due to the allowance that they give to the published power ratings of their connector. Too much an allowance pushes up costs unnecessarily. For many companies, controlling production outlay without compromising safety will continue to be a major challenge in 2009.