What are the development edges in domestic industry of circuit protective components?

What are the development edges in domestic industry of circuit protective components?

With rapid development of electronic IT in recent years, electronic products are updated at an ever higher speed. With engraved conception of “green, environmental protection, energy-saving”, together with governmental efforts in energy-saving and reduction of emission in various countries, and promotion of HEV, smart grid technology and new energy power generation in developed countries as well as developing countries like China, India and Brazil, market demand for circuit protective components will be stimulated remarkably.

So, what are the development edges in domestic industry of circuit protective components?

(1) Downstream market demand is strong. With rapid development of electronic IT in recent years, electronic products are updated at an ever higher speed. Output and sales of consumer electronic products represented by FPTV, tablet, digital camera and smart mobile phone continuously increased, which drove growth of electronic protection industry. In the coming years, above industries will maintain strong momentum of growth and create tremendous market space for circuit protective components. With engraved conception of “green, environmental protection, energy-saving”, together with governmental efforts in energy-saving and reduction of emission in various countries, and promotion of HEV, smart grid technology and new energy power generation in developed countries as well as developing countries like China, India and Brazil, market demand for circuit protective components will be stimulated remarkably.

(2)Technical content of electronic industry is high. Circuit protective components belong to high-tech products in the global context in terms of stringent requirements for manufacturing equipments, materials and process technology. To adapt to such functions of downstream products as multifunction, smallness and portability, and manufacturers have to invest more and more, develop new materials and new technologies, and produce new products. Manufacturers with leading technology may maintain higher level of profit margin through development of new products, which in return ensures continual input in development and upgrading of equipments, so as to maintain leading-edge market position. Moreover, higher technical content drives industrial admission threshold to higher level, which to some extent reduces cut-throat competition in electronic industry, and ultimately ensures sound development of this industry.

(3)Place of origins concentrate in China. In recent years, production bases of electronic products like tablet, digital camera, refrigerator, washer and air conditioner moved to China in large size, and China has become a production base of electronic products in the world. China remains competitive edges in the cost of production factors like primary workforce, technical R&D talents, land and capital, and more and more suppliers of circuit protective components expanded their production scale in China, for instance, Littelfuse, Bussmann and TEConnectivity have established joint venture or wholly-owned company in China. The move of international suppliers of circuit protective components to China not only expanded market size of electronic industry, but also introduced advanced technologies to China, which helped in rapidly improving overall level of the industry of circuit protective components in China, and drove this industry by rapid growth. Domestic producers of circuit protective components, for over ten years of fierce market competition, have developed many enterprises of strong market competitiveness, such as Holly-fuse, Shanghai Wei’an and etc, these enterprises will grow stronger and stronger with the development of electronic industry.

(5) National industrial policy supports electronic industry. Circuit protective components belong to new electronic components, which is an industry encouraged by the nation for development. The Catalogue for the Guidance on Adjustment of Industrial Structure (Version 2011) issued by National Development and Reform Commission stated that, during the period of the 12th Five-year plan, China must focus on the development of basic core industries such as IC, software and new components, encourage development of large-scale IC equipment manufacturing, as well as manufacturing of new electronic components (Chip components, frequency components, mixed IC, power electronic components, photoelectric components, sensitive components and sensors, new electromechanical parts, high density PCB and flexible circuit board and etc). The products of Ruilongyuan Electronics belong to Class 1-Electronic IT, Clause 6-New Electronic Components, Sub-clause 2-Technology of Chip and Integrated Passive Components, Fields of High and New Technology under the Primary Support of the State, collectively issued in April 2008 by Ministry of Science & Technology of the People's Republic of China (MOST), Ministry of Finance of the People's Republic of China (MOF) and State Administration of Taxation (SAT), and our products fall into the category of national supporting policy. Thus, our industry is encouraged and supported by national industrial policy, industrial policy environment is continuously favorable and supports prospective development of electronic industry.

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