At the China-Asean Emerging Industries Forum held recently, the relevant person in charge of the Ministry of Industry and Information Technology introduced that in 2022, the added value of strategic emerging industries such as new generation information technology, high-end equipment and new energy vehicles will account for more than 13% of GDP. Driven by China’s efforts to build a modern industrial system, emerging industries have achieved rapid development. In the new era of high-quality development, China’s strategic emerging industries provide new development opportunities for foreign enterprises, and those companies that have been deeply engaged in this field for many years and have excellent performance in localization will benefit more.

Coincidently, recently, TE Connectivity (hereinafter referred to as “TE”), a global industry technology company in the field of connectivity and sensing, also disclosed in its 2023 fiscal year annual report that the company has shown continued growth momentum in the field of electric transportation, renewable energy applications, and has also achieved positive performance in artificial intelligence and other applications. These results are closely related to its strong performance in the Chinese market.

Zhang Chao, General Manager of TE China and Vice President of Human Resources for Asia Pacific, said, “Almost everywhere that requires power, signal and data transmission, advanced and reliable connectivity and sensor products are needed. Connectivity and sensor products can be said to be the backbone of electrification and the cornerstone of digital intelligence. There is no doubt that the accelerated transformation and upgrading of China’s strategic emerging industry market is a vibrant blue ocean for TE. “This year coincides with the 35th anniversary of TE’s entry into the Chinese mainland market, Zhang Chao said:” Over the past 35 years, the company has always adhered to the ‘customer first, innovation-oriented, cooperation-oriented, based on long-term’, constantly deepening the localization layout, improving the efficiency and level of localization, in order to better meet the needs of the Chinese market.”

To better serve Chinese customers with a higher level of localization

TE believes that three factors determine the level of localization.

The first is local manufacturing and supply capacity.

In October this year, TE successfully laid the foundation of its $150 million advanced manufacturing base in Nantong, Jiangsu Province. The base will mainly undertake the production of high-voltage connectors for new energy vehicles, high-speed high-frequency data connectors for automobiles and other products. We have full process manufacturing capabilities covering mold development, engineering design, injection molding and equipment processing, as well as assembly. It is expected to be put into production in 2025, with an annual capacity of more than 3.5 billion pieces.

Zhang Chao said, “The investment in Nantong base is an important measure for TE to deepen its local strategy and will further strengthen TE’s local production capacity in China.” Up to now, TE has more than 10 advanced manufacturing bases widely distributed in Guangdong, Jiangsu, Shanghai, Shandong, Sichuan, Fujian and other places in China, serving more than 10 vertical markets, and can respond more quickly to the needs of local customers with more stable manufacturing supply capacity.

In addition, as early as 1998, TE established a China logistics center in Waigaoqiao, Shanghai. Today, the logistics distribution center has become TE’s largest self-operated logistics center in the Asia Pacific region. Not only that, at the end of last year, TE officially entered the 1688 e-commerce platform; In August this year, it reached cooperation with Yunhan Xincheng (Shanghai) Internet Technology Co., LTD., a well-known production service platform in the field of electronic manufacturing. Create a new digital purchasing experience to meet more diversified purchasing needs of customers.

Second is local innovation and research and development capabilities.

In early November, TE and New H3C Group signed a sensor-related strategic agreement, and the two sides will carry out in-depth cooperation in the development and implementation of industrial sensor solutions, industrial Internet technology incubation, talent training and exchange, in order to better serve the digital and intelligent transformation needs of customers in China’s strategic emerging industries.

In the past 35 years, TE has continuously invested in local R&D and engineering capabilities, and built strong engineering and manufacturing capabilities through continuous hardware holdings and local talent training. At present, TE has about 20,000 employees in China, including more than 3,000 engineers, an increase of 50% from a decade ago. TE engineers can work with customers’ engineering teams from the beginning of product design to help customers improve the overall efficiency of product development. In addition, TE has one engineering center in Shanghai and one in Suzhou. There are also two laboratories in Shanghai and Shenzhen, which are engaged in quality inspection, material research and other work. TE China has also become one of the most important patent application regions for TE worldwide.

The third factor is the cultivation of local innovative talents.

Talent is an important cornerstone for promoting scientific and technological progress. From corporate values and culture to management and communication mechanisms, TE encourages the development of innovative talent and has built multiple platforms such as NAVIGATE, TE Global Technology Summit and TE China Innovation Summit to promote the development of innovative talent.

In addition, as a global industry technology leader, TE has been committed to advancing STEM (science, technology, engineering and mathematics) education and the development of future engineering talent. TE has diversified school-enterprise cooperation with many universities and vocational and technical schools in China, and supports “STEM” education and promotes talent training through interactive and cooperative ways such as TE scholarship (teaching) fund, technical competitions, technical lectures, co-construction laboratories, and student clubs. In 2018, TE launched TE AI Cup competition in Asia, aiming to provide engineering students with a platform that can combine AI technology with actual industrial application scenarios, stimulate the creativity of engineering students around the world, and promote the application of AI technology in the field of industrial manufacturing. Today, TE AI Cup has been upgraded to a global technology event covering Asia, Europe, the Middle East and Africa, and the Americas.

A high level of localization means always adhering to a sustainable development strategy

High-quality development means green development. With a mission to “Create a safer, sustainable, efficient and connected future,” TE released its One Connected World strategy in 2020. Under the guidance of this strategy, TE China is also actively promoting sustainable development practices, and organically embedding its own development into the tide of high-quality development in China.

On the one hand, TE actively seeks and implements energy-saving and emission reduction opportunities in its own operations, while vigorously promoting the use of electricity from renewable energy sources. Recently, TE’s rooftop solar PV project at its Southern manufacturing base in the Hongmeicao Development Park was officially put into operation, which is expected to reduce about 84 tons of carbon dioxide emissions in the first year. “Sustainability has always been a key element of TE’s mission. The direct use of green energy, represented by distributed photovoltaics, in our operations represents another major step towards achieving our Sustainable Development Goals.” Zhang Chao introduced to.

In addition to applying clean energy, TE also connects upstream and downstream partners to promote sustainable supply chains. For example, plastic is an important raw material in the production of connectors and other components, and TE has been exploring how to use resin materials more sustainably. TE first starts with product design, and minimizes the use of resin materials on the premise of ensuring product performance; At the same time, we continue to explore new materials with our partners, such as replacing some of the plastics produced from fossil-based raw materials with bio-based materials such as castor seeds.

Whether it is through its own operations, through partnerships with upstream and downstream partners, or by providing products and technologies to customers in various industries to promote green upgrades, TE wants to do everything in its power to contribute to the environment and sustainability. In 2023, TE was included in the Dow Jones Sustainability Index for 11 consecutive years, the Standard & Poor’s Global Sustainability Yearbook for the third time, and Fortune Magazine’s “World’s Most Admired Companies” for six consecutive years.

Strategic emerging industries are a new track for China’s high-quality development, and they are also key areas for China to move from “manufacturing power” to “manufacturing power”, with unlimited opportunities. Standing on a new node in history, TE will, with a higher level of localization strategy, strive to innovate R&D cooperation, deepen talent training output, and consolidate product supply capacity to better serve the Chinese market and promote the transformation and upgrading of China’s manufacturing industry.