Electronic components are located at the upstream of the electronic information industry chain and serve as the foundation for the development of communication, computer and network, digital audio and video systems, and terminal products. The total market size of global electronic components has reached over 400 billion US dollars. The following is an analysis of the development trend of the electronic component industry.

In the past few years, the global smartphone market has rapidly expanded, and the analysis of the electronic component industry predicts that there will still be some growth in the future. The growth in the shipment volume of terminal electronic products represented by mobile phones has a positive driving effect on the increase in passive component sales. At the same time, the upgrading of consumer electronics products, the introduction of new technologies, and the application of 5G will increase the usage of passive components in a single product, further expanding the scale of the passive component market.

In this context, China's electronic information industry is rapidly developing, and the electronic component industry has entered a stage of rapid development. The country's attention to the industry is constantly increasing. ZTE Corporation has been banned from selling electronic components by the US government, and the localization of electronic components has attracted attention from all sectors of society. At the same time, the government's funding and policy support for the industry are increasing. Now, we analyze the development trend of the electronic component industry from three aspects:

Trend 1: The industry market size has reached over 200 billion yuan

As of 2018, the market size of China's electronic component industry has reached over 200 billion yuan, and the overall sales revenue level and output growth rate of the new electronic component industry are close to each other. The average annual growth rate of China's emerging electronic component market exceeds 10%, and the overall development level of the industry is relatively fast. In recent years, with the further development of emerging fields such as intelligent transportation, smartphones, and the Internet of Things, the scale of China's emerging electronic component market is expected to further increase.

Trend 2: Japanese manufacturers exiting the mid to low end market

Due to the low labor cost and the rapid development of downstream mobile phones, automobiles and other application fields, the world's major passive component manufacturers have set up production plants in Chinese Mainland. For example, Japanese manufacturers, except Nippon Chemi con, have set up factories in Chinese Mainland, which has driven the improvement of the production capacity and technology of passive components in mainland China and promoted the transfer of production capacity to the mainland. The development trend of the electronic component industry points out that Japanese manufacturers have withdrawn from the mid to low end market, Taiwanese manufacturers have limited inventory, and passive component manufacturers in mainland China are facing opportunities.

Trend 3: The industry has shown an export-oriented pattern

The advantage of low-end passive components in China lies in their relatively low labor costs. With the continuous improvement of manufacturing processes, the self-sufficiency rate has gradually increased. Domestic manufacturers have begun to vigorously transport production capacity overseas. In 2018, the export value of passive electronic components in mainland China exceeded the import value of 48.9 billion US dollars, and the export oriented pattern has emerged, expanding the space for the development of the electronic component industry.

Against the backdrop of continuous progress in technology and the "Made in China 2025" initiative, downstream markets have increasingly higher requirements for the volume, power consumption, response speed, accuracy, power, and supporting equipment of electronic components. The electronic component industry in China is facing pressure to catch up with international advanced levels in the field of technology, as well as challenges in the development of the new generation of electronic information technology. The above is all the analysis of the development trend of the electronic component industry.