Against the backdrop of trade frictions, major enterprises such as ZTE and Huawei have been successively sanctioned by the United States, facing a supply shortage crisis, but this has also led to a rapid promotion of localization and substitution processes. At the same time, affected by the COVID-19 and the overall acceleration of 5G construction under the new four modernizations, the market size and growth rate of passive components have continued to rise, which also brings broader development space for domestic manufacturers.
As the largest market in the global passive component industry, China accounted for 43% of the global market in 2019, with MLCC as the main market, with a scale of nearly 9 billion US dollars. With the acceleration of domestic substitution process and the urgent need for independent and controllable, the passive component industry chain will further shift towards domestic market, and China's share in the global passive component market is expected to exceed 50%. However, compared to China's market share in the global market, there is still significant room for domestic manufacturers and brands to increase their market share in the passive component industry. However, due to the high technical barriers and high concentration of production capacity in the industry, domestic manufacturers also need to face various challenges while facing opportunities.
At present, the passive component industry in China is in a growth and scaling stage, and the market with insufficient supply is a strategic choice for enterprises to expand production capacity and grow stronger. However, driven by a highly prosperous external environment, market concentration is bound to increase. To break through the encirclement of domestic manufacturers, branding and quality improvement are the strategic measures for enterprises to establish competitive barriers and gain market share.
Faced with the complex situation of the still severe global epidemic situation, escalating trade frictions, and continuously rising upstream raw material prices, Anhui Fuxin brand, as a newcomer to domestic private manufacturers, has vigorously entered the national brand lineup of passive components with SMT resistor products as a weapon. Internally, it is accelerating the layout of the product system and capacity expansion of RCL components. After several years of development, Anhui Fuxin has gradually formed a dual dimensional core competitive advantage in the industry through hard indicators of market layout, technological research and development, advanced equipment, efficient production capacity, professional team, and soft indicators of craftsmanship quality, green manufacturing, and high-quality service. It has achieved good reputation and brand effect in the industry, while also maintaining a high-quality and efficient development trend.
Nowadays, Anhui Fuxin, as a national brand of high-quality domestic components, has two major business units: Anhui Fuxin Semiconductor Technology Co., Ltd. and Anhui Fujie Electronic Technology Co., Ltd. It also has more than 20 service outlets in Shenzhen, Dongguan, Shanghai, Nanjing, Hong Kong and other places to provide customers with a complete product system, comprehensive technical support, professional product training, and fast customer complaint response in the industrial chain. At present, Anhui Fuxin's product chain covers MLCC, SMT resistors, chip resistors, thick film resistors, thin film resistors, alloy resistors, high-power resistors, automotive grade resistors, sulfur resistant resistors, as well as various electronic products such as semiconductors, diodes and transistors, MOS, etc.
Although domestic substitution is the trend, most domestic brands are still not favored at present. Apart from the lack of competitiveness in the high-end market, the inherent impression of low quality and low performance of state-owned brands in the past is still difficult to erase. With the continuous rise of private manufacturers in the past two years, a good competitive environment has been formed in the industry, and the process of domestic substitution of electronic components is unstoppable.