The electronic components industry is ushering in new development opportunities.

As the foundational support of the electronic information industry, the electronic components sector is ushering in a new wave of development opportunities. Data indicates that the market size of electronic components in China is expected to reach $15 billion by 2020, driven by the rapid growth of industries such as renewable energy, rail transportation, and instrumentation.

Currently, China has achieved large-scale production in basic components such as chip resistors, monolithic ceramic capacitors, and aluminum electrolytic capacitors. Particularly in the MLCC (Multilayer Ceramic Capacitor) sector, China has become the world's largest consumer market, with annual demand accounting for 70% of the global total. In 2017, the import value reached $5.62 billion.

However, the industry still faces numerous challenges. Insufficient technological accumulation and a lack of professional talent hinder the upgrading of China's electronic components industry. Taking MLCC as an example, the domestic market is predominantly occupied by international giants such as Japan's Murata, TDK, and South Korea's Samsung, with Japanese companies holding over 50% of the market share.

Notably, since the second half of 2017, prices of basic electronic components like capacitors and resistors have been continuously rising. For instance, Yageo has raised its chip resistor prices three times this year, with a cumulative increase of over 70%. Behind the price hikes lies an imbalance in supply and demand: on one hand, rising costs of raw materials, labor, and environmental compliance; on the other, agents stockpiling inventory have exacerbated market supply tensions.

This wave of price increases has significantly impacted the electronic manufacturing supply chain. In Guangdong, a major hub for electronic manufacturing, numerous small and medium-sized electronic processing enterprises have been forced to reduce production or even halt operations due to component shortages. MLCC, one of the most severely affected products, has seen price increases ripple across various applications, including automatic control instruments, computers, mobile phones, and automotive electronics.

In response to these industry changes, domestic companies are actively adapting. Enterprises in both Taiwan and mainland China are increasing investment in technological research and development and expanding production capacity. At the government level, the integrated circuit industry has been designated as a key supported sector under the "Made in China 2025" strategy.

Industry analysts suggest that while the current boom cycle in the electronic components sector poses short-term pressures on downstream enterprises, it also provides a rare opportunity for domestic companies to catch up. With technological advancements and increased production capacity, it is expected that market supply and demand will gradually rebalance in the near future, offering more stable support for the development of downstream industries such as instrumentation.

Looking ahead, the localization process in the electronic components industry is expected to accelerate. Driven by policy support, market demand, and technological progress, China's electronic components industry is poised to embrace new development opportunities, laying a solid foundation for the overall upgrade of the electronic information industry.