How RECOM’s DC/DC Power Module Customers Can Cope With the Worldwide Semiconductor Shortage

How the semiconductor industry operates based on volume

As discussed in the previous blog, many DC/DC converter customers are facing a supply shortage. The semiconductor component supply chain operates differently for high-volume and low-volume customers due to their distinct requirements, purchasing power, and relationships with suppliers.

There are several differences between high- and low-volume customers, including purchasing volume and negotiating power, priority allocation, and component lead times.

Purchasing volume and negotiating power

High-volume customers typically place large orders with suppliers, allowing them to negotiate better pricing and terms due to their significant purchasing volume. Their purchasing power enables them to secure preferential treatment, access to limited or exclusive products, and more favorable contract terms. In contrast, low-volume customers must order smaller quantities through distributors, limiting their negotiating leverage and forcing them to accept potentially higher prices and less flexibility in contract terms.

Priority in supply allocation

During periods of component shortages or high demand, suppliers often prioritize high-volume direct customers. Suppliers aim to maintain long-term relationships with these customers to secure steady business and higher revenue streams. As a result, low-volume customers might experience delays in obtaining critical components or face allocation restrictions when supply is limited.

Lead times and availability

High-volume customers generally receive priority when it comes to fulfilling orders and receiving shipments. Suppliers strive to meet the demands of their most significant customers promptly. Consequently, high-volume customers often enjoy shorter lead times and greater availability of components compared to low-volume customers, who may experience longer lead times and limited stock.

How can smaller volume purchasers of DC/DC power modules and converters overcome these challenges?

Option one: Find alternative sources

In times of scarcity when demand exceeds supply, DC/DC customers might be tempted to source a hard-to-find part from one of the many unauthorized brokers plying their trade online. Buyer beware! In such cases, the risk of purchasing components with sub-standard levels of quality or even counterfeit devices rises considerably. Sometimes, counterfeit products are simply empty packages or packages with the wrong die, or packages without bond wires. These are non-functional and easy to spot, but a more devious approach is to take functioning parts and alter them in ways that are hard to detect. Examples include new product codes; RoHS markings on noncompliant products; high-performance markings on low-performance products; or industrial- or automotive-grade designations on commercial-grade parts. These products may pass initial testing only to fail later in the field.

Using counterfeit components can lead to severe consequences, including device malfunction, safety hazards, and reputational damage. Low-volume buyers are especially susceptible to falling victim to such practices, as they may not have the resources to perform extensive quality checks and vetting processes.

Option two: Change the design

Another alternative may be to revise the design to eliminate the power module and switch to an in-house discrete solution. However, this approach brings with it a different set of risks. First, the design and validation time is likely to be longer and may be limited. The bill of materials (BOM) is much more complex for a discrete design than for a single power module. A discrete solution will have a dozen or more different components from different suppliers, and any of these components could be on allocation in the current environment.

A buffer stock must be built up for each of these components. Limited engineering resources must be diverted to identify and qualify multiple second sources and manage supply chain issues.

Option three: The RECOM solution

In the face of this market dynamic, how can RECOM help? With 100,000 customers worldwide, our aggregate volume means that RECOM is ranked as a high-volume customer with our suppliers. Our purchasing power enables us to buy the active and passive components directly from our suppliers and reap the benefits discussed above. We can also build a buffer stock of the parts that go into our power modules.

We have used our purchasing power to dramatically increase our stock of hard-to-get power modules in the most popular configurations. The result is dramatically improved availability and shortened lead times compared to equivalent modules from other suppliers.

RECOM has DC/DC power modules in the RPX, RPL, and RPY families available for immediate delivery. These are buck converters with integrated inductors in tiny surface-mount packages. The devices are fully protected against continuous short circuits, output overcurrent, or over-temperature faults. Their high current and small size make them ideal for a wide range of applications including imaging systems, distributed power architectures, portable equipment in telecom, as well as industrial applications.

The RPX family features power ranges from 5W to 20W with output currents from 0.5A to 4A. The RPX-1.0, for example, features an input range from 4VDC to 36VDC, allowing 5V, 12V, or 24V supply voltages to be used. The output voltage can be set from 0.8VDC to 30VDC with two resistors. The output current is up to 1A and is fully protected against continuous short circuits, output overcurrent, or over-temperature faults.

The RPL family of 15W buck converters uses a tiny 3mm x 3mm x 1.45mm thermally enhanced LGA package. The RPL-3.0, for example, features an input range from 4VDC to 18VDC, allowing 5V and 12V supply rails to be used. The output voltage can be set from 0.8VDC to 5.2VDC. The output current is up to 3A.

For automotive customers, the RPY-1.5Q is a 7.5W AEC-Q100 qualified constant current source buck regulator with an integrated inductor designed for driving high-power LEDs. A complete LED driver can be realized in a compact 3mm x 5mm x 1.6mm thermally enhanced QFN package with a maximum current output of up to 1500mA set with an external sense resistor. The input voltage range is from 4VDC to 36VDC, allowing 5V, 12V, or 24V supply voltages to be used. The output is fully protected against continuous short circuits, input undervoltage, output overcurrent, or over-temperature conditions. A fault indicator flags thermal shutdown or LED open/short circuit conditions.

Automotive or industrial applications include dimmable LED lighting, visible or IR LED illumination for drones and robotic camera systems, or precision high current CC sources for test and measurement use.

Conclusion

While high-volume customers enjoy advantages such as better pricing, preferential treatment, and customized solutions, low-volume customers may face challenges like longer lead times, limited availability, and less favorable contract terms. Rather than resorting to one of the several unappealing workarounds, RECOM offers a convenient solution with immediate delivery of high-demand low-wattage DC/DC power modules that meet a wide variety of industrial applications.