What are the development opportunities for China's electronic component industry?

The upgrading of consumer electronics technology and 5g applications have brought strong demand

In the past few years, the global smart phone market has expanded rapidly, and it is expected that there will still be a certain increase in the future. The growth in the shipment of terminal electronic products represented by mobile phones has a positive driving effect on the sales of passive components. At the same time, the upgrading of consumer electronic products, the introduction of new technologies and 5g applications will increase the use of passive components of a single product and further expand the market scale of passive components.

LG and Huawei will successively launch 5g mobile phones at the MWC 2019 world mobile communication conference to be held in Barcelona from the 25th to the 28th of this month. What is expected is that Huawei will soon display 5g mobile phones with folding screen function in MWC 2019, which indicates that 5g mobile phones will officially enter the consumer electronics market and enter people's lives.

The rate of vehicle electronization and the penetration rate of new energy vehicles have increased, opening up new space for the demand for passive components

Automotive electronics are mainly used in power control systems, on-board information and entertainment systems, automotive safety control systems, body electronic systems, etc. in order to improve the driving experience, the rate of automotive electronization continues to increase. Taiwan vehicle research and testing center predicts that the average total consumption of automotive passive components will exceed 5000, accounting for more than 40% of the output value of the whole vehicle. According to the statistics of Zhiyan consulting, the global automotive electronics market reached 245.6 billion US dollars in 2016 and is expected to exceed 300 billion US dollars in 2020. There is a huge market space for automotive passive components.

Japanese manufacturers withdraw from the medium and low-end market + local advantages, and promote the accelerated transfer of passive components to Chinese Mainland

Due to low labor costs and the rapid development of downstream mobile phones, automobiles and other application fields, the world's major passive component manufacturers have set up production plants in Chinese Mainland. For example, Japanese manufacturers, except nipponchemi con, have set up plants in Chinese Mainland, which has led to the improvement of the production capacity and technology of passive components in the mainland and promoted the transfer of production capacity to the mainland. Japanese manufacturers withdrew from the medium and low-end market, Taiwan manufacturers limited inventory, and mainland passive component manufacturers ushered in an opportunity.

The domestic passive electronic component industry has shown an export-oriented pattern

The advantage of domestic medium and low-end passive components lies in the relatively low labor cost. With the continuous improvement of manufacturing technology, the self-sufficiency rate has gradually increased. Domestic manufacturers have begun to vigorously export production capacity overseas. In 2018, the export volume of passive electronic components in Chinese Mainland has exceeded the import volume by US $48.9 billion. The export-oriented pattern has emerged, which also expands the space for the development of the electronic component industry.

With the development of science and technology, the demand for consumer electronic products is also growing, resulting in a shortage of some electronic components. Automotive electronics, Internet application products, mobile communications, smart home, 5g, consumer electronics and other fields have become the continuous driving force for the development of China's electronic components market, driving the market demand for electronic components and accelerating the replacement of electronic components. From the perspective of downstream demand, the development prospect of the electronic components market is extremely promising.