Analysis | Electronic component industry with opportunities and challenges under epidemic situation

Time:

2022-12-02 15:56

Growth rate of export delivery value of electronic information manufacturing industry and industrial enterprises from 2012 to 2021
(According to the statistics of relevant institutions, the average trade volume of Hong Kong will account for 38% of China's total chip imports in 2020, which shows that Hong Kong plays an important role in China's chip supply chain. In addition, according to the data of the Ministry of Industry and Information Technology, according to the customs statistics, China will export 310.7 billion integrated circuits in 2021, a year-on-year increase of 19.6%; import 635.48 billion integrated circuits, a year-on-year increase of 16.9%)
Since the epidemic of COVID-19 has raged around the world, the topic of chip localization has never stopped. With the overall promotion of 5G construction, the rapid development of high-frequency and intelligent electronic application terminals, and the continuous improvement of downstream market demand such as the Internet of Things, new energy, automotive electronics, the market demand for terminal components has always maintained an upward trend. Since the beginning of 2022, the electronic component industry has not ushered in the recovery of the market supply and demand balance, and the price rise tide caused by the continuous shortage of supply is still on the rise.
At the same time, due to the continuous escalation of the Russian Ukrainian war, chip production may further intensify. Ukraine supplies nearly 70% of the world's neon gas, which is an important raw material for the production of semiconductor chips. In addition, Russia also holds 40% of the world's palladium and 9% of the world's nickel output. As a key raw material for chips, palladium prices have been rising since October 2021. After the Russian Ukrainian conflict, prices have risen again by about 20% - 30%.
Facing the opportunities and challenges brought by the epidemic and shortage, based on China's efforts to promote the development of domestic chips, the number of imported foreign chips began to gradually reduce, and it is estimated that the self-sufficiency rate of domestic chips will also reach 70% in 2025. Semiconductor chip is an important factor in the development of science and technology. While the self-sufficiency rate is improving, the breakthrough of core technology and technical talents is still an inevitable important factor for us to pursue breakthroughs in the chip industry. In terms of overall industrial chain layout, Chinese enterprises are mainly located in the middle and lower reaches of the industrial chain. The technology and industrial development level of the upstream link still lags far behind that of foreign countries. Domestic manufacturers still have a long way to go in building their own brands of domestic chips.

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