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LM2736: LM2736, voltage drop with high load

Part Number: LM2736
Other Parts Discussed in Thread: LM2734

I used Texas Webench to design a power supply with an LM2736 (see attached). The regulator is supplying an MCU and some sensors. The board also has an LCD with a tipical consumption of 360mA and a maximum of 575mA, in both cases that's for controller and backlight.

  • Without the LCD the board starts without any issue.
  • If I conect the LCD and then power up the board, the LM2736 and other parts (diode, inductor) gets really hot, the voltage drop from 3.3V to 2.5V and the MCU won't start.
  • If I power up the board AND THEN plug in the LCD the LM2736 works whitout any problem, I have the 3.3V and it doesn't get too hot. 

It seems like the LM2736 won't start if I try to source an initial high current. I'm not particularly comfortable with switching supplies, (or how to debug it) any points to solve this issue?

Thanks!