Cells of the Industrial Age - Electronic Component
Updated: Dec 13, 2021
The Electronic Component Manufacturing industry in China manufactures electrical equipment and components which are then purchased and further used in other electronic products. Products within this industry change the electrical signals of the circuit, but do not change the electrical voltage or current, nor include optical fibers and cables, batteries, printed circuit boards and semiconductors. The main activities are capacitor manufacturing, resistor manufacturing, induction coil manufacturing, magnetic element manufacturing, sensing component manufacturing, electronic connector manufacturing, frequency-control and selection-element manufacturing and other electronic component manufacturing. The major products and services in this industry are:
Other electronic components
Flow of Goods
In 2020, this industry has accrued $302.6 billion USD. With 7,420 businesses operating in this industry, Foxconn Technology Group led the way with a market share of 9.7%. Tianjin Jinya Electronics Co., Ltd. had the second largest market share with 1.0% and Chaozhou Three-circle (Group) Co. Ltd. followed with a market share of 0.3%.
Annual growth between 2015–2020 was 5.6%, and annual growth for 2020–2025 is projected to be 4.8%.
The main drivers of industry growth are steady increases in demand from markets these electronic components are a necessity such as the mobile phone, household appliance, and personal computer manufacturing industries. The demand for the resulting goods will most likely come from the eastern and northern regions of China and foreign markets. Moreover, less restraining policies, and more efficient market entry/exit regulations would aid industry development. Unfortunately, higher requirements for investments and R&D would remain barriers to entry.
Major Players in China:
China remains a giant in the electronic component manufacturing industry. Despite the negative economic outlooks and shortages in related markets, this industry has a positive outlook for the future.
Future of the Industry
The Covid-19 has certainly hit the Chinese electronic component manufacturing industry, many factories struggle to survive under the lockdown. However, looking in the future, with the development of 5G network, automation and Internet of Things, it is likely that we would see Chinese electronic component manufacturing industry recover quickly from the pandemic
The global electronic component industry is heavily reliant on manufacturers in China. During the Covid-19, with the disruption of global supply chain, many manufacturers globally has suffered huge losses. In the past few decades, companies in the U.S and Europe massively outsource its electronic components from China. One of the most promising industry globally in the future is the robotic industry, which heavily reliant on electronic components to build.
Although currently, China dominates the global supply chain of electronic components, it is reported that many big global companies are moving its factory from China due to China’s increasing labour costs. Many companies like Apple, Amazon and Google has quietly move their factory to other Asian countries such as Vietnam and India which have lower labour costs. However, the infrastructure and less capable labours in those less developed countries is certainly a big problems for companies that are considering moving, hence in short term China will still dominate the global electronic components manufacturing.
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