SMPS design and manufacture done abroad

[stimperz]

Hello,

I recently found out about a large electronics company in UK that buy-in Switch-mode-power-supplies (from 10w to 1KW) from the Far East. All the SMPS design is done in China by the Chinese company.

They then incoorporate them into their products.

(They first do some acceptance testing on these SMPS's, and then build them into their product.)

There are plenty of out-of-(SMPS)-work SMPS engineers in the UK so i guess that the only reason to get them designed and built in China is that it costs less.

My question is: How much less does it cost?

Bearing in mind the shipping costs/time which must be quite expensive, as well as the problem of semiconductor devices possibly being exposed to radiation at customs x-ray detector machines.

I would be very grateful for any answer to my question.

 

[GregLocock]

Given that my laptop has been through at least 20 X ray machines I think you are on the wrong track there.

Chinese pay rates are about $3 per hour, from memory. That may not be a big hit if you just consider the assembly stage, but when you apply it to the manufacture of every part, and the design of the thing, then it is a pretty overwhelming advantage.

Many of our parts and subassemblies are made in SE Asia, I think that is true of most industries these days.

Incidentally for a Briton(?) to be complaining about world trade is quite funny, in a historical context. Even now you do realise that some incredible proportion of the UK's GNP is a result of world trade?



Cheers

Greg Locock

SIGlease see FAQ731-376 for tips on how to make the best use of Eng-Tips.

 

[stimperz]

Hi,

Thankyou for your reply. You're right I am a Brit.

Thankyou for your $3/hour wage assessment for Electronics Assembly Staff in china.

....Surely this does not apply to Chinese Electronics Designers?...

My belief is that Chinese (& other Far Eastern) Electronics Designers are well payed and wealthy. -You only have to look at some of the spectacular buildings/cars/shops/'Yuppy' appartments in places like Shenzen or Guangzhou.

The notable point is that this UK Electronics company is now getting Chinese staff to do the SMPS design too.
The UK company then merely does the Acceptance/Quality testing and final assembly into the product.

 

[GregLocock]

OK, I know someone who used to employ lots of chinese engineers, I'll get a better estimate from him. I did not get the impression that it was Chinese engineers living in the ritzy apartments.



Cheers

Greg Locock

SIGlease see FAQ731-376 for tips on how to make the best use of Eng-Tips.

 

[GregLocock]

Hourly worker: ~$1ph
Engineer no English: $5-$10 ph
Engineer with English: $10-35 ph for an excellent engineer
These are Shanghai numbers about 2 years ago. In Chongching 30% less at least.

Cheers

Greg Locock

SIGlease see FAQ731-376 for tips on how to make the best use of Eng-Tips.