Driven by the dual benefits of the continued increase in domestic substitution policies and the concentrated demand for downstream multi-terminal industries, China’s electronic materials track has experienced explosive growth in recent times, with the overall industry growth rate soaring to 665.4%. Against the background of the fragmentation of the overall technology sector and the pressure on the growth of traditional industries, China has emerged from an independent market and has become one of the most promising technology segment tracks at present.
The core logic of the industry explosion comes from the joint efforts of two main lines: First, directional support on the policy side. The state and local governments have recently introduced detailed support policies for semiconductors, new displays, and new energy electronics, covering special subsidies, tax exemptions, green channels for supply guarantees and other measures. Equipment procurement, research and development of high-end material mass production projects
You can apply for large subsidies for any investment in development. At the same time, leading downstream manufacturing companies are guided to give priority to purchasing local materials, directly opening up the domestic supply and demand closed loop of “material factory-end processing factory”, breaking the previous long-term monopoly of high-end electronic material production capacity, core formulas, and upstream raw materials by overseas companies. Domestic manufacturers can only provide low-end supporting products, with meager profits and frequent bottlenecks.
Second, the five high-growth downstream areas (semiconductor chips, consumer electronics, new energy vehicle on-board electronics, photovoltaic energy storage, and Mini LED display) have simultaneously entered a production expansion cycle. New energy vehicle on-board chip production capacity has doubled, energy storage installed capacity continues to rise, domestic mid- and low-end chips have accelerated the process of replacing imported chips, and Mini LED screens have been distributed on a large scale. The superposition of multiple demands has driven a surge in orders for electronic materials.
However, the original production capacity of overseas material factories was limited. After the demand exploded, delivery times continued to lengthen, prices continued to rise, and even supplies were cut off. This left a huge market gap for domestic electronic materials companies. Local manufacturers quickly seized the market with advantages such as stable supply, fast after-sales response, and controllable costs, which jointly pushed up the overall growth rate of the industry.
At present, a number of leading companies with core competitiveness in subdivided fields have emerged in the domestic electronic materials track, covering all links of the industrial chain: there are semiconductor electronic chemical companies that have achieved mass production of high-end photoresist auxiliary materials, breaking overseas monopolies, and serving domestic first-tier wafer factories; there are display materials companies that have mastered the production capacity of upstream resin raw materials, covering full-size optical films, and automotive display material orders are growing rapidly; there are display materials companies that have product performance ratios
Alongside overseas first-line brands, lithium conductive agents and insulating material companies supporting leading new energy battery companies; there are also many leading manufacturers that have achieved breakthroughs in the fields of electronic packaging materials, high-purity electronic specialty gases, flexible electronic films, PCB specialty chemicals, ceramic electronic substrates, electronic bonding and protective coating materials, and comprehensive electronic material platforms. Each company continues to break through in the segmented fields, driving the activity of the entire industry chain to continuously increase.
From a long-term development perspective, the growth of the electronic materials track is extremely certain: the current localization rate of high-end semiconductors and automotive electronics core materials is less than 30%, and 70% of the market still relies on imports. As the stability of overseas supply declines and production expansion plans are postponed, there is a huge space for substitution by local manufacturers, and the high growth rate of the industry will not subside in the short term.
At the same time, the downstream electronic materials industry covers the two high-prosperity sectors of technology and new energy, and the needs of multiple tracks complement each other, greatly reducing the cyclical risks caused by fluctuations in a single industry.
In addition, in recent years, the domestic electronic materials industry chain has made breakthroughs in the localization of upstream basic chemical raw materials and high-end production equipment, which has basically enabled the entire industry chain to achieve a domestic closed loop. Enterprise production costs have continued to decline, and profit growth has fed back into R&D and production capacity expansion, forming a positive cycle.
The industry generally believes that the three major factors of policy dividends, the explosion of downstream demand, and the steady advancement of domestic substitution have mutually reinforced each other, allowing the electronic materials track to achieve ultra-high growth in the short term. At the same time, the mid- to long-term supply and demand gap and room for industrial upgrades are still considerable. It is one of the most noteworthy golden tracks in the field of science and technology. Related products also have strong cost and technical competitiveness when going overseas.
