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China's largest market demand for electronic components

date: 2022-11-25

  It is understood that since this year, the supply of electronic components, including chips and capacitors, has fallen short of demand and the prices have risen sharply, which has caught many consumer electronics manufacturers off guard and left them suffering. It was learned from the 15th "International Symposium and Exhibition on Integrated Circuits" held in Shenzhen that with the continuous growth of China's electronic consumer market and insufficient investment, China's semiconductor industry may face more insufficient production capacity of electronic components such as chips in the next five years.

  According to the analysis of relevant data, the total operating income of China's electronic industry in 2010 will increase by about 10% year on year, reaching the scale of 1.06 trillion US dollars, becoming the largest electronic industry base in the world. At the same time, China's electronic consumer market will grow to 145.8 billion US dollars this year. This will directly lead to the total demand for electronic components in the Chinese market reaching 110 billion US dollars.

  BrandON Smith, president of eMedia Asia Limited, an enterprise alliance of Global Resources, believes that the market, including portable medical electronics, green energy, LED backlight and automotive electronics, has gradually grown and become a new application field of electronic components. The demand for semiconductors and components in these industries is rising rapidly. Data shows that the average annual growth rate of China's medical electronics industry is 15%. In terms of green energy, the output of Chinese made solar photovoltaic panels has accounted for 30% of the global market share, and environmental protection and energy conservation have become a major trend actively pursued by the Chinese government and local enterprises.

  On the other hand, Brandon Smith believes that China has developed into the world's largest auto consumer market. It is estimated that China will produce more than 15 million cars in 2010; The rise of hybrid electric vehicles and electric vehicles will further drive the industry's demand for semiconductors and components, because electric vehicles will use more integrated circuits and components than traditional vehicles.

  In this regard, Dr. Wei Shaojun, the deputy leader of the overall expert group of major national science and technology projects and a double professor of Tsinghua University and Peking University, believes that, in fact, from the perspective of China's existing chip capacity, the integrated circuit industry should not have the problem of insufficient capacity, because the current capacity utilization rate of large chip manufacturers, including SMIC International, is very low. The main reason for the tight capacity of the current integrated circuit industry is the mismatch between chip manufacturers' products and market demand, specifically the contradiction between large batch capacity and diversified small batch demand. He believes that as Chinese enterprises still have weak capacity in mainstream chips, if the government's investment in chips can not keep up with the arrival of the peak of the industrial cycle, Chinese IC design enterprises will face more serious capacity problems in the next five years.

  Brandon Smith believes that with the rising labor and land costs, product design will become an increasingly important key for Chinese manufacturers to maintain and improve their competitiveness in the global and local markets.