In recent years, with the rapid development of electronic information technology, electronic products have been updated faster and faster. As the idea of "green, environmental protection, and energy saving" has become more popular, and governments of various countries are working on energy saving and emission reduction, hybrid electric vehicles, smart grid technology, new energy power generation, etc. are in developed countries and China, India, Brazil, etc. Growing developing countries are being vigorously promoted, which will also greatly promote the market demand for circuit protection components.
So, what are the development advantages of the domestic circuit protection component industry?
(1) The downstream market demand is strong. In recent years, with the rapid development of electronic information technology, the updating speed of electronic products has become faster and faster. The production and sales of consumer electronic products such as flat-panel TVs, notebook computers, digital cameras, smart phones and other products have continued to increase, which has driven The circuit protection industry is growing. In the next few years, the above-mentioned industries will still maintain a strong growth momentum, which will bring huge market space to the circuit protection component industry. As the idea of "green, environmental protection, and energy saving" has become more popular, and governments of various countries are working on energy saving and emission reduction, hybrid electric vehicles, smart grid technology, new energy power generation, etc. are in developed countries and China, India, Brazil, etc. Growing developing countries are being vigorously promoted, which will also greatly promote the market demand for circuit protection components.
(2) The technical content of the industry is high. Circuit protection components are high-tech products on a global scale, and have high requirements for manufacturing equipment, raw materials, and process technology. In order to meet the needs of downstream products such as multi-function, miniaturization, portability, etc., manufacturers need to continuously increase technological investment, develop new materials, new technologies, and produce new products. Technologically leading manufacturers can obtain a higher level of profitability through the development of new products, ensure continuous investment in R&D and equipment, and maintain an advantageous position. At the same time, the improvement of technical content has also raised the barriers to entry of the industry, reduced vicious competition in the industry to a certain extent, and can guarantee the healthy development of the industry.
(3) The production area is concentrated in China. In recent years, the production bases of notebook computers, digital cameras, refrigerators, washing machines, air conditioners and other electronic products have all moved to China on a large scale, and China has become the world's production base for electronic products. China’s primary labor force, technical R&D talents, land, capital and other production factors cost advantages still exist. More and more circuit protection component suppliers are expanding their production scale in China. For example, Littelfuse, Bussmann, and TEConnectivity have established joint ventures or joint ventures in China. Sole proprietorship. The transfer of international circuit protection component manufacturers to China has not only expanded the market scale of the industry, but also brought advanced technology into China, rapidly improving the overall level of China’s circuit protection component industry, and driving the rapid growth of the industry. After more than ten years of fierce market competition, domestic circuit protection component manufacturers have formed companies with strong market competitiveness such as Hollyland Technology and Shanghai Wei'an. These companies will continue to grow and develop with the development of the industry.
(4) National industrial policy support. Circuit protection components are new types of electronic components and are industries encouraged by the state to develop. The National Development and Reform Commission’s "Industrial Structure Adjustment Guidance Catalogue (2011 Edition)" revised in 2013) stated that during the 12th Five-Year Plan period, it is necessary to vigorously develop basic core industries such as integrated circuits, software and new components, and encourage the development of large-scale integrated circuits. Equipment manufacturing, new electronic components (chip components, frequency components, hybrid integrated circuits, power electronic devices, optoelectronic devices, sensitive components and sensors, new electromechanical components, high-density printed circuit boards and flexible circuit boards, etc.) The company's products belong to the first category of electronic information technology in the "National Key Support for High-tech Fields" promulgated by the Ministry of Science and Technology, the Ministry of Finance, and the State Administration of Taxation in April 2008, Article 6, New Electronic Components, Article 2 Chip and integrated passive component technology are products supported by national policies. Therefore, the company's industry is an industry encouraged and supported by national industry policies. The industry policy environment continues to improve, which is conducive to the future development of the industry.
