As the foundation of the electronic information industry, electronic components are playing an increasingly important role in ensuring the long-term stable growth of China's electronic information manufacturing industry. Therefore, the Ministry of Industry and Information Technology launched the "Action Plan for the Development of Basic Electronic Component Industry" in early 2021, aiming to create a large and strong basic electronic component industry and cultivate a group of leading enterprises.

National industrial policy support

The electronic component manufacturing industry is a key industry that has been supported and developed by the state for a long time. By issuing a series of laws, regulations, and policy documents, the state has laid a good policy environment foundation for the industry and promoted its further development. The "14th Five Year Plan" and the 2035 Vision Outline mention the cultivation and growth of emerging digital industries such as artificial intelligence, big data, blockchain, cloud computing, and network security, and the improvement of the level of communication equipment, terminal connectors, core electronic components, key software, and other industries, which will bring new growth points to the industry.

Downstream demand drives industry development

In recent years, driven by factors such as the continuous development of mobile internet technology, the improvement of consumer electronics manufacturing level, and the increase in residents' income level, the electronic component industry has shown a vigorous development trend. In the future, with the integration of emerging technologies such as 5G, the Internet of Things, artificial intelligence, virtual reality, and new displays with consumer electronics, the industry's demand will continue to increase, which will also drive the continuous expansion of the market size.

Domestic terminal strip enterprises have entered a golden period of development

The electronic device manufacturing industry in Chinese Mainland started late. In recent years, with the transfer of electronic device manufacturing industry to Chinese Mainland and the urgent demand for supply chain security under the Sino US trade war, the local electronic device manufacturing industry ushered in a golden period of development. Domestic manufacturers, such as Shanghai Lianjie Electric, Shanghai Youle Electric, Beijing Yiliangou, etc., have emerged in the field of terminal connectors, with huge space for future growth.