Electronic components are widely used in various consumer electronics, communication devices, automotive electronics and other terminal products, and are the cornerstone of supporting the development of the information technology industry. The changes in the electronic component market not only directly affect the development of the electronic information industry, but also have important significance for the development of information technology, the transformation of traditional industries, the improvement of modern equipment level, and the promotion of scientific and technological progress. Therefore, ensuring the safe, stable, and healthy development of the industrial chain and supply chain has become the key.
In recent years, thanks to the trend of industrial transformation and upgrading in China, electronic clusters have continuously emerged. Currently, the total output value of China's electronic components industry accounts for about one-fifth of the electronic information industry. The capital market is increasingly favoring the semiconductor industry, and every move in the industry is also receiving attention. On February 3rd, the unveiling ceremony of the International Trading Center for Electronic Components and Integrated Circuits was held in Beijing. The trading center is led by China Electronics Information Industry Group Co., Ltd. and Shenzhen Investment Holding Co., Ltd., jointly established by 13 central, state-owned, and private enterprises, with a registered capital of 2.128 billion yuan, forming a pattern led by state-owned assets and enterprises and jointly constructed by multiple types of entities; As of January 31, 2023, the trading center achieved a transaction scale of 3.11 billion yuan.
The establishment of this international trading center closely linked to the development of the electronic components industry will not only directly enhance the popularity and influence of China's electronic components in the global market, but also become a powerful driving force for the high-quality development of China's electronic components industry from a national strategic perspective.
The domestic market is developing rapidly, with strong industry demand and a need for sound market protection
In recent years, China's electronic components and integrated circuits have rapidly grown into the world's largest market. From 2011 to 2021, the global proportion of China's integrated circuit sales will increase from 10% to 30%. In 2021, the industrial scale will reach 1045.8 billion yuan, an increase of 18% year on year. Of the top 50 distributors in the Asia Pacific region, 66% of their revenue will come from the Chinese Mainland market.
However, at the same time, the situation of many, small, scattered, and weak enterprises in the electronic information industry has not completely changed, and the problems of asymmetric transaction information, multiple irrational factors, and weak guarantee ability in the industry are still prominent.
The investment in independent brand research and development is gradually increasing, and the development and rise of independent brands
With the continuous transformation and upgrading of the domestic electronic information industry, its requirements for electronic components will also continue to increase. China's electronic component industry will gradually shift from a low-cost advantage to a high-end product advantage. In recent years, domestic independent brands have continuously increased their R&D investment. Among them, domestic independent brands represented by Anhui Fujie Electronic Technology Co., Ltd. have seen a gradual increase in R&D investment from 2019 to 2022. The proportion of year-on-year operating revenue increased from 5% to over 9%. With the investment of technology research and development funds, the overall number of electronic component patent applications in China is showing a continuous upward trend. In 2021, the number of electronic component patent applications in China was 4389, with a year-on-year change rate of -0.61%. As of now, the number of electronic component applications in China in 2022 is 2286. Electronic component enterprises with high core technology and strong innovation capabilities will occupy an advantageous position in future market competition, further increase industry concentration, and promote China's transformation from a major producer to a manufacturing powerhouse.
The cake needs to be enlarged, and the profit margin needs to be improved
The profitability of domestic brands still needs to be improved while the domestic market demand remains high. The combined impact of rising raw material prices and the global environment further squeezes the profit margins of the low-end market.
In recent years, thanks to the trend of industrial transformation and upgrading in China, the total output value of China's electronic components industry accounts for about one-fifth of the electronic information industry. The fastest growth in the market comes from two major areas: automotive electronics and new energy storage. The demand for electronic components in the market is strong, with production and sales reaching new highs. This will continuously promote the development of the electronic components industry.
However, currently domestic domestic independent brands still focus on low-end products, and the efforts in the mid to high end market are insufficient. It is necessary to increase product research and development efforts and production capacity guarantee in high-end fields such as automotive regulations and energy storage. High quality independent brands are expected to gain market recognition and further increase market share through their production capacity advantages, technological hard power, and product price competitiveness.
The establishment of the Electronic Components and Integrated Circuit International Trading Center provides a standardized and transparent trading platform for the industry, standardizing the trading process, promoting the integration, restructuring, and efficient use of property rights resources. With the trend of domestic semiconductor and domestic substitution, promoting the high-quality development of domestic electronic components through technology will drive the further development and upgrading of China's entire modern information industry.