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China Electronic Components Should Break The Bottleneck of Upstream Product Import
March.22.2011

In 2010, the total output of China GPS Antenna industry reached 125.5 billion pieces, which is first in the world, it accounted for 45% of the world total production, the sales reached 106.5 billion Yuan, with an increase of 20% over the same period of last year. The total sales of China electronic components industry exceeded 1000 billion Yuan for the first time. From the main products, the increase of electro-acoustic devices, relays, magnetic materials and devices are the fastest. The output of RC components, electro-acoustic devices, magnetic materials, piezoelectric quartz crystal, PCB, micromotors, electronic transformers and other products all rank first in the world. Although in 2010 the sales revenue of Chinese electronic components industry grew rapidly, but its profit growth had dropped a lot. In 2010, China's electronic components industry achieved a total profit of about 53 billion Yuan, representing a year-on-year increase of 9.73%. But in 2009 the profit growth was as much as 24.8%.

According statistical data of customs and enterprises that was surveyed, in 2010, the total import and export volume of 14 categories and 73 subclasses of China electronic components industry products reached 106.2 billion U.S. dollars, in which the export amount was 53.5 billion U.S. dollars, with a year-on-year increase of 34.52%, and the import amount was 52.7 billion U.S. dollars. The export growth has declined for 8 consecutive months. The export growth of inductance device (50.83%), electrical solar panel control elements (46.56%) and optical cable (43.41%) are the top three in various types of products. From the above data we can see that China's electronic components industry development in 2010 is still very good, especially when the shadow of the international financial crisis has not completely disappeared, the world economy has not fully recovered, it also has achieved such a result, it is really hard to come by.

The upstream products are still heavily dependent on imports.

First, the upstream products such as electronic materials, spare parts, instrument and equipment which are produced in China and used for supporting electronic components manufacturing industry still have a wide gap between the advanced level in the world, many products are still heavily dependent on imports, it has become a major issue restricting Chinese solar water heater manufacturing development.

Second, the RMB appreciation, the labor force tensions, the labor costs rising and the prices of raw battery materials that supporting electronic components manufacturing increase have become major problems influencing enterprises' survival and development.

The growth rate of this year's export amount will exceed 15%.

Since the reform and opening up, China's electrical products industry has experienced rapid growth from small to large, which has become the world's largest producer of electronic components and big electric products exporter, it also has developed into a professional industrial system with complete variety species, and it has accumulated some experience to cope with international financial crisis and various natural disasters. In 2011, China's electric products industry also will respond the uncertain factors brought by international financial crisis change, and face the competition from developed countries in high-end products market, strategic and emerging industry, as well as face serious challenges from other developing countries in labor-intensive market, in China, it should deal with RMB appreciation, labor tensions, labor costs rising, raw material prices increase and other factors. The year of 2011 is the third year of implementing the State Council's Electronic Information Industry Restructuring and Revitalization Plan, according to the capacitor State Council's decision, in the future it will accelerate the construction of secure information network infrastructure, and promote a new generation of mobile communication, next generation Internet core equipment and the R & D and industrialization of intelligent terminals, speed up the promotion of three networks convergence, promote the R & D and demonstration applications of internet of things and cloud computing, which will give a great opportunity for China electronic components development.

Above provided by SelectChina.com, and find more information on China Electrical Manufacturers / China Electrical Products.
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China Household Appliance Industry Will Promote The Application of Energy-saving Technology and New Materials
March.03.2011

As reported, the Twelfth Five-Year Plan scheme draft of GPS Antenna industry has been finished, and it also has asked for advices from enterprises level, it is expected to be reported to the relevant departments in recent period. The applications on energy efficiency, major technologies and new materials will have relative quantitative task indicators. The first draft put forward that China will become a powerful country of making solar panel with 10 years of efforts, and according to this objective, it also has proposed specific economic indicators, technological innovation indicators, quality indicators, energy saving and environmental protection home appliances indicators and international indicators for the Twelfth Five-Year Plan.

In order to lay the foundation for kitchen utensil power, the main task during the Twelfth Five-Year period is to guide the household appliance industry to develop toward the connotative direction through restructuring product structure, industry structure and market structure, as well as distributing the industry reasonably, and achieve the transformation of structural adjustment, industrial restructuring and upgrading and the development digital electronic products mode. As for the main objectives and tasks, the discussion draft also proposed specific measures and policy recommendations.

The person who approach drafting the plan disclosed that, at present Chinese home appliances industry must recognize the status that under the fully competitive environment, more companies are repeating the old way--foreign guidance and domestic follow on the one hand, on the other hand, they are reducing cost and achieving profit through scale management. Therefore, the importance of changing ideas and growth mode must be realized first of all. Many companies appeal to that the relevant departments should increase the policy support on developing digital electronic technology, key parts and components, and change the current situation that some key components of home appliance are controlled by others.

However, according to the draftsman, in the current complete draft, energy saving and environmental protection will be an important theme, at the same time it also has put forward relative quantifiable indicators for the specific tasks of household appliance industry development, such as how much the average energy efficiency is hoped to increase, what kind of core technology will be developed and so on; it is also hoped to increase the speaking right of Chinese home appliance standard system in the international world through guiding the technological innovation, and increase the proportion of world-class appliance brand in the industry. The draftsman also stressed that the plan also has proposed requirements for new materials application, it will encourage people to use more appropriate materials under the consideration of energy saving and environmental protection. The reporters also learned that the major technology research project that related to household appliances industry development is expected to get key support from authority department.

Analysts pointed out that it means some enterprises that take the lead in working hard in energy-saving home appliances technology and participating in researching core technology, upstream materials and components will get greater support. Except paying attention to Haier, Chigo and other whole machine manufacturers, which are innovative on energy efficiency, the compressor equipment manufacturing, new materials and other upstream companies also are worth concerning specially by investors, such as Shuangliang energy-saving, Hesheng new materials and so on.

Above provided by SelectChina.com, and find more information on China Consumer Electronics Manufacturers / China Consumer Electronics Products.
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Looking China Wire and Cable Industry's Development Prospect From Optical Fiber Cable and Power Cable
February.16.2011

The development of optical fiber cable is rapid since it was invented and used in 1960s, now "Fiber replace copper", the optical fiber cable has gradually replaced communication GPS Antenna. From the production scale, there were two or three hundred companies producing optical fiber cable in the past, but today only twenty of them are still active in the solar water heater market, the old disorderly competition development state has become orderly and the industrial concentration degree is very high, the output of top five optical fiber cable companies accounted for more than 80% of total production. From the industry chain, China's optical fiber cable companies have experienced from only producing optical cable to later optical fiber, and then to seven to eight companies can produce light rods, the solar panel industrial concentration degree has been greatly increased. The optical fiber cable industry has undergone a development process from the great development in early 1990s, later the disorderly competition, then to today's industrial concentration degree increase.

We can extend this process to discuss the wire and cable industry. The production value of wire and cable industry is large, including thousands of enterprises, but the industrial concentration is not high. From the Eleventh Five-Year and Twelfth Five-Year Plan, with the construction of power grid, the expansion of power performance and the use of new energy, the wire and cable industry's market prospect is still relatively good. Although there are many unsatisfactory problems in the battery industry such as enterprises' disorderly competition, but from the law of industry development, I think they are problems in the capacitor development process, and they are relative and can be solved, it is as same as the optical fiber electric products development process from disorderly competition to orderly competition.

From the perspective of wire and cable development prospect, with the post-financial crisis era coming and China electric appliance industry's continuous innovation, it is the year of designing the Twelfth Five-year Plan, I think China's intelligent network construction may be faster than anticipated, the convergence of three or four networks has brought new opportunities for wire and cable industry, the market demand of product structure, quantity and other aspects will have a lot of space. Therefore, the wire and electric products industry is a promising industry.

The wire and cable industry is promising, but generally the profit margin is only about 5%. China has such standard conditions on high-tech enterprises: when enterprise's sales income is between 50 million Yuan and 200 million Yuan in the latest year, its research and electrical products development expense is no less than 4% of total sales revenue; when enterprise's sales income is more than 200 million Yuan, the ratio is not less than 3%. This standard has brought pressure for many wire and cable enterprises, especially private enterprises, so when making investment in research and development, enterprises are inevitably hesitating.

Above provided by SelectChina.com, and find more information on China Electrical Manufacturers / China Electrical Products.
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The Exportation of Chinese Home Appliance Industry Facing Five Major Challenges
January.25.2011

With the recovery of global economy, Chinese home appliance exportation, which is linked together with the development of global economy, will also meet a new round rebounding growth. In the face of various situations such as European and American markets' downturn, the unpredictable change of Middle East and other emerging markets and so on, industry observers point out that, in the long survey of current world economic development, although Chinese home appliance industry which holds a leading digital electronic post in the world has established discourse power with its advantages of scalization and industrial chain, but it still will face five major challenges from other countries' policies and regulations, trade protection, exchange rate fluctuations, raw material prices increasing and other aspects.

After 30 years of development, Chinese home appliance enterprises' dependence of various stimulating policies increased suddenly. Especially under the impact of global financial crisis, every home appliance enterprise will obtain benefit from government policies as solid backing for them to explore new markets and stimulate consumption. This year, the economic policy of Chinese government has been transferred from keeping growth to adjusting digital electronic products structure, which has no doubt opened the signal that the government will develop a new round adjustment of development mode and growth structure for domestic economic fields and leading industries.

However, with the economic recovery consolidating gradually, the policies and measures dealing with crisis is bound to exit smoothly and orderly. Therefore, both how to continuously maintain a strong policy support and how to ensure the policy support for leading solar panel industries will significantly influence the overseas market development of home appliance enterprises in the future, but the dominant right is not in their hands.

Currently, the price of crude oil has rebounded after sharp fall, which also has caused the price of oil, nonferrous metals and other commodity to increase continually and directly led to the cost rise of many industrial products. If many industries still enjoyed the sharp decline of raw material price in last year, which had brought large business cost control and well profit margins, then this year, a lot of home appliances enterprises have to consider how to further digest the cost control pressure that brought by the raw material price increasing on the basis of ensuring the price of GPS Antenna market products to be stable.

Now, as the home appliance manufacturing center of global home appliance industry, many Chinese kitchen utensil enterprises manufacturing profit is small, and the fluctuations of raw material costs will directly affect the products competitiveness in overseas market. For overseas solar water heater buyers, their bargaining power with Chinese enterprises is so strong that they can get five enterprise’s different quotes with a same order, so Chinese home appliance enterprises have been restricted by the rules that the lowest bidder can obtain the order, and it is hard to imagine how large the restriction is. In order to control cost, except through the measures of technological innovation, launching new materials and new processes to reduce resource consumption, home appliances enterprises also should transfer export patterns and category and enhance the share of high value-added products.

Above provided by SelectChina.com, and find more information on China Consumer Electronics Manufacturers / China Consumer Electronics Products.
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The First Production Line of The 6th Generation TFT-LCD Has Put Into Trial Production in Mainland China
December.08.2010

The products lighting ceremony of Chinese mainland's first production line of the 6th generation TFT-LCD was held in Hefei BOE Optoelectronics Technology Co., on Sep 3rd, which marks the production line has put into trial production, and the history that there are no homemade screens in more than 32 inches middle and large-size LCD TV has ended.

China, as a big consumption country of home appliances, its self-sufficiency rate is less than 10%, thereinto, the screens of large-size LCD TV are highly dependent on imports, and more than 32-inch LCD screens are all dependent on home appliance imports. However, the costs of LCD screen account for about more than 70% of manufacturing LCD TV, so the screen shortage has become a short leg of China TV manufacturers.

Most products of Hefei BOE 6th production line are less than 37-inch screens of television and computer. It has filled the blank of homemade home appliance middle and large-size LCD TV screens, and also has great significance for promoting the transformation of domestic color TV digital electronic industry and increasing the independent innovation capacity of China LCD industry.

The 6th production line of BOE settled in Hefei, which has promoted the development of local electronic information home appliances industry and the overall economic of Anhui Province. Regarding this project as a core, more than 10 world famous enterprises such as Sumitomo Chemical and French Air Liquid have gradually settled in the digital electronic products industry base of flat panel display in Hefei. These supporting companies have formed a tattoo machine kits development path around the 6th production line of Hefei BOE, that is leading projects -- industrial chain -- industrial cluster, so a new display industry cluster with 100 billion yuan output value is expected to form in the future.

The 6th production line of Hefei BOE started working in April 2009 with a total kitchen utensil investment of 17.5 billion yuan, the solar panel designed capacity is 90K substrates/month. It is expected that after the solar water heater project reaching the designed production capacity, the annual output of LCD screen will be more than 15 million pieces, and the sale will reach 12 billion yuan.

Above provided by SelectChina.com, and find more information on China Consumer Electronics Manufacturers / China Consumer Electronics Products.
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