Development Dilemma of Electronic Components Industry

1. Human resource constraints

Excellent electronic components distributors need to provide downstream customers with value-added services such as reference design, on-site engineering support, technical training and testing services, so the company needs a lot of human resources investment in R & D and customer support services. Although the electronic components industry in China is developing rapidly, the scale time is relatively short, and the number of outstanding professionals with certain experience is limited, which makes it difficult to fully meet the needs of the rapid development of the industry. The lack of professionals has become one of the constraints for the rapid development of the domestic electronic components distribution industry.

2. Restriction of capital scale

On one hand, as the enterprises in this industry need to purchase a large number of products from electronic component design manufacturers for sales, the insufficient capital scale will make it difficult for the electronic component distributors to expand their scale rapidly; on the other hand, technology research and development plays an important role in the development of this industry, and the enterprises in this industry need to invest a large amount of capital in research and development equipment, recruitment of professional and technical personnel and other work. The limitation of capital scale restricts the research and development of advanced technology with large investment, which is not conducive to the healthy development of industry enterprises.

3. Industrial policy support

Electronic components industry is a high-tech pillar industry related to economic development and national defense security, which has been highly valued and strongly supported by the state. In February 2020, 11 ministries and commissions, including the Development and Reform Commission, the Central Network Information Office, the Ministry of Science and Technology and the Ministry of Industry and Information Technology, issued the Strategy for Innovative Development of Intelligent Vehicles, which requires that by 2025, China's standard intelligent vehicle technology innovation, industrial ecology, infrastructure, regulations and standards, product supervision and network security system will basically be formed. It can realize the large-scale production of intelligent vehicles with conditional automatic driving, and realize the market-oriented application of highly automatic driving intelligent vehicles in specific environments. By 2035, China's standard intelligent vehicle system will be fully built. The above policy d0cuments provide guidance and guidance from the overall development direction, phased objectives, fiscal and taxation incentives of the electronic components distribution and automotive market, further refine the industrial development path and clarify the specific operational rules, which will play a positive role in the sustainable and healthy development of the IC industry.

4. Rapid development of downstream industry

With the increasing demand of consumers for automobile safety, comfort and entertainment in recent years, the trend of automobile intellectualization is accelerating. Among them, the advanced assistant driving represented by automobile active safety is constantly used in high-end cars, and is constantly penetrating into the middle and low end. Sensors, cameras, radars, microprocessors, circuit boards and other automotive electronic components are widely used in the process of automotive intelligence. The development process of automotive from functionality to intelligence is also a process of extensive use and upgrading of automotive electronics.