Electronic components are the cornerstone of supporting the development of electronic information industry, and the key performance and quality of high-end components play a decisive role in the accuracy, performance, life and reliability of downstream products. In recent years, affected by the COVID-19 epidemic, the international political and economic situation and other factors, the growth rate of the global electronic information manufacturing industry has slowed down, but with the continuous rolling out of the digital China construction and the solid progress of new industrialization in China, the long-term fundamentals of the electronic information product manufacturing industry such as high-end components have not changed fundamentally.

MM3-4FXM2 First, China’s high-end components have formed a relatively complete industrial chain

At present, China has formed the world’s largest production and marketing scale, relatively complete categories, the industrial chain is basically complete electronic components industrial system, electroacoustic devices, magnetic material components, photoelectric cables and other categories of electronic components output first in the world, electronic components industry overall scale has exceeded 2 trillion yuan, accounting for more than one-third of the world’s output. With the continuous expansion of the industrial scale, high-end components products have also achieved breakthroughs, circuit, connection, electromechanical, sensing components and optical communication devices and other products continue to achieve technological innovation and product upgrades, representative enterprises include Shengling Electronics, core source Semiconductor, Kedajia Electronics, Chaozhou third ring, Yongxing Electronics, etc. The products have been widely used in aerospace, information and communication, new energy, rail transit, medical and other fields.

MM3-4FXM2

MM3-4FXM2 From the perspective of industrial chain segmentation, the supply and demand of upstream electronic information materials have steadily increased, the market scale has continued to expand, and the demand potential has been continuously released. The scale of the printed circuit board market in the middle reaches shows a fluctuating trend, the growth rate of the high-speed optical communication chip market in China ranks first in the world, and the market size of photoelectric sensors continues to expand. The downstream industrial robot field is widely used, China’s growth rate is higher than the global average, in addition, the market potential of intelligent vehicle terminal applications, smart wearable devices, instruments and special equipment is also constantly being developed.

Second, affected by the global market, the import and export amount of components and components products fell

MM3-4FXM2 In 2023, the global market downward trend is obvious, superimposed by the United States trade protection policy and other factors, the import and export amount of components and components products in the country have declined. According to the General Administration of Customs data, in 2023, China’s electronic components (including printed circuits, diodes and similar semiconductor devices, integrated circuits, etc.) imports amounted to $398.16 billion, down 15.9% year on year; Exports amounted to $252.80 billion, down 9.6% year on year. Affected by the narrowing of import and export scale, the operating efficiency of enterprises in various subsectors of electronic components also declined to a certain extent. From the perspective of segmented products, in 2023, China imported 479.56 billion integrated circuits, a decrease of 10.8%; The amount was 2,459.07 billion yuan, a decrease of 10.6% year-on-year. Diodes and similar semiconductor devices will be imported 452.96 billion pieces in 2023, a decrease of 23.8%. The amount was 165.81 billion yuan, down 13.7 percent from a year earlier. However, in the long run, with the continuous development of global artificial intelligence, large models, high-efficiency computing and other fields and the recovery of consumer electronics market demand, the market of component products, especially high-end products, is expected to stabilize and rebound. According to World Semiconductor Trade Statistics (WSTS), the global storage market will grow by 44.8% in 2024, with discrete devices, sensors, simulators, logic devices and micro devices growing by 4.2%, 3.7%, 3.7%, 9.6% and 7.0%, respectively.