Judging from the scale of the industry, China's electronic components are in the country the second largest electronics manufacturing industry, over the computer communications industry and second only to manufacturing. 1 April 2008, electronic components manufacturing industry revenue growth of 31.8%, exceeding the industry average of 8.7 percentage point; 5762 income scale enterprises 284.454 billion yuan, accounting for the share of industry revenue reached 19.41%.
Production of electronic components in China already accounts for 30% of the world, a component manufacturing country. Resistors, capacitors, motor, electro-acoustic devices, quartz crystal components and optical communication cables and other categories of production are highest in the world. Among them, motor, electro-acoustic devices, quartz crystal components production accounted for 60% of the world, 60% and 50%. From the product structure, the chip components has become mainstream.
Bring hidden costs
By the upstream raw material prices and the appreciation of the Renminbi factors, electronic components industry in 2007, there were many issues of concern.
2007 Electronic Components hundred enterprises in China grew by 8.6%, slowing down, nearly 20 percentage points lower year on year, export or even negative growth of 5.6%. These data suggest that in 2007, RMB appreciation, raw materials, labor costs, China's electronic components industry exports a significant negative effect.
From the profit point of view, although the electronic components business as a whole hundred total profit 9.5 billion yuan, up 15.17%; total profit to income ratio increased by 7.62% in 2006 to 8.08%, but in structure, the total profit increase of 30 % of enterprises are 34, 10 fewer than in 2006; more than 100% of a 10, one fewer than in 2006; a total of 27 negative growth in corporate profits, more than in 2006 7.
The industry believes that the future of electronic components industry, profit margins may decrease. View from the industry pattern, electronic components business is relatively small and exist in a large number of small and medium enterprise sector, while the upstream raw materials, relatively large-scale enterprises. Therefore, the electronic components industry in the face of price increases of raw materials upstream firm, the bargaining power to resist lower prices, companies can only two ways to deal with the cost of upgrading: one seeking to increase the price, but for the technical content is not high , homogenization of serious products, price increases is difficult. China's current component products are also concentrated in these products, therefore, pass to the weak capacity downstream. Second, through continuous development of new products to maintain profitability, which is in fact enhance the technological content of products to maintain profitability. However, the current electronic components hundred business innovation, this aspect still to be improved.
Basic R & D investment to be increased
Electronic components from the 2007 hundred enterprises are concerned, the total number of only 334 patents patent there are only 41, less than 50% of the number of firms. Of these, only 55 patents, only 16.5%, the rest all look and utility model patents. Enterprises obtained a patent is only 23, most of the business year 2007, without any patent. Hundred corporate R & D investment in 2007 amounted to 3.118 billion yuan, accounting for only 2.6% of sales. Among them, the real cost of new products for only 24% for basic research, less than 10%, the rest was spent on improving on existing products.
Business-to long-term, prospective study into the market is too low, causing our current components industry the main factor behind the overall technology. Today's lack of basic R & D investment, will inevitably continue to affect the future of the industry's technology level.
Appropriate integration is an inevitable choice
Many categories of electronic components industry, the product is rich, is a paradise for the growth of SMEs. However, the first factor is the growth of certain technologies and products around existing products for effective development of similar and related products, and form a virtuous circle. Therefore, companies must be particularly concerned about the continued development of products, price competition or will be caught in the quagmire. For some more serious homogenization of the product, the appropriate integration of the industry is necessary. By the size of the increase can reduce costs, including lower production costs and improve bargaining power and reduce raw material procurement costs. In addition, the expansion of the scale of the enterprise may be more R & D strength, promote technology improvement.
Overall, the electronic components industry, a wealth of product categories to the company considerable opportunities for development. However, as the whole industry, raw materials, labor costs rise, the gap between the level of product technology and the RMB appreciation factor will be suppressed for some time electronic components industry profitability.
