Zhongshan makers focus on high-end switching power supplies

China (mainland) – Realizing slim profits from low-end and midrange switching power supplies, Zhongshan makers are opting to produce more high-end models to boost sales. Rising costs of raw materials and components have compelled most of them to raise prices by about 10 percent in the last 12 months.

Zhongshan remains one of the major production hubs for switching power supplies in mainland China. In the past several years, the city achieved total sales of about $20 million, posting an annual growth rate of over 15 percent. Most makers attribute such growth to strong demand from the communication, emergency lighting, automotive electronics and portable electronics sectors.

ViewKuan Electronic Products Manufacturing said it will concentrate on manufacturing small-sized switching power supplies with high reliability, high power output, long operating life and efficient EMI reduction performance.

Other makers plan to offer switching power supplies with customized specifications to their OEM and ODM clients. Others will cooperate with their customers to develop new products.

Moreover, Zhongshan makers are adopting environment-friendly materials and components. Most of their materials and production processes are RoHS-compliant.

Greater shipments, output eyed
Over 90 percent of switching power supply makers in Zhongshan serve overseas clients, all of them benefiting from the city's efficient transportation and logistics systems. Zhongshan’s shipments of switching power supplies account for 60 to 80 percent of total sales.

Exporters are keen on expanding their markets in Europe and North America. For instance, ViewKuan, which ships 90 percent of its switching power supplies, is targeting a 10 to 20 percent increase in shipments to Europe this year.

Most Zhongshan manufacturers also plan to increase production by at least 10 percent this year and the next. Zhongshan Xiaolan Hui Yang Electric Appliance Fty, which has a monthly capacity of 300,000 units, will raise its output by 20 percent this year.

Zhongshan makers are confident that sales will increase by more than 15 percent this year and in 2009.

Today, the city has about 30 to 50 manufacturers, most of which are locally owned. More than 70 percent of suppliers are small- and medium-sized enterprises with annual sales of less than $690,000.

Zhongshan, a prefecture-level city in Guangdong province, is located in the middle area, south of the Pearl River Delta. In 2007, the city's total GDP reached $16.8 billion, posting a 14.7 percent year-on-year increase. Its total export value was $17.3 billion, up 10.8 percent from 2006.

Zhongshan's electronic information industry registered a total production value of over $13.8 billion in 2007. Its electronic components segment has achieved 15 percent annual growth in the past several years.