Andy,
A small contribution on my part to your questions.
The components installed inside computers are mostly low dropouts (LDO), which perform the task of protecting the microprocessor from power fluctuations.
Each time the operating voltage of a computer system is reduced (last time it was lowered from 5.0V to 3.3V), the LDO becomes more important, because an equal absolute voltage drop experienced by both systems represents a larger percentage drop for the lower voltage system. Lower voltage levels will continue to be introduced, because this is a limiting factor in the race to shrink microprocessor designs below .18 micron, and it also affects the amount of heat (which leads to failure) generated by the microprocessor.
Manufacturers cannot afford to build a system without the protection of LDO's, because if any computer were to experience a voltage fluctuation, it would most likely need a replacement CPU. This represents too much of a risk for them to not just install LDO's at the time of original manufacture.
It's that fortunate position called critical component supplier SMTC enjoys; since LDO's are necessary based on the risks associated with not using them, and they are a proprietary device not easily produced, SMTC has no current motive to lower their price unless competitors come out with similar products.
As manufacturers continue to feel price pressures, they will probably not slow production rates (they may rise, since more people will be able to afford a computer), but just have to accept the reality of lower profit margins, which SMTC may eventually feel down the road.
Similar to how my children NEED milk as a part of their diet, LDO's are necessary in current system design. Even if highly reliable, inexpensive power supplies could be built, there are too many other sources of power fluctuations within a system to eliminate their position next to the CPU. The introduction of copper conductors, reduction of voltages down to 1.0V, and the shrinking size of semiconductor design bodes well for SMTC, in terms of sales of their LDO's to computer system manufacturers.
Regards, JB |
