The integrated circuit becomes a "manufacturing power" leading industry to reach the new opportunity of electronic FCC

China's integrated circuit (IC) industry is currently experiencing rapid growth, achieving significant success in 2017. According to the latest statistics from the National Bureau of Statistics, China produced 156.46 billion IC units that year, marking an 18.7% increase compared to the previous year. The total revenue reached 433.55 billion yuan, rising by 20.1%. By 2020, the industry was expected to surpass 900 billion yuan, with a compound annual growth rate of 20.8%, showing strong momentum and promising future prospects. This rapid development has been largely driven by government support. Since 2014, "IC" has become a key focus in the government work report. That same year, the State Council released the "Outline for the Development of the National Integrated Circuit Industry," elevating the sector to a national strategic priority. It outlined clear goals and directions for the industry during the "13th Five-Year Plan" period. In recent years, the government has continued to emphasize the importance of the IC industry, placing it at the forefront of efforts to build a strong technological nation. Beyond policy support, the progress of key enterprises has played a crucial role in the industry's growth. Li Xiaohua, chairman of Shangda Electronics, a leading company in flexible printed circuits (FPC), shared insights into the evolution of the sector. Before 1997, Chinese manufacturers had limited involvement in FPC production. However, around 2000, more mainland companies began investing in this area. In the Pearl River Delta alone, at least 60 companies were involved in building or expanding FPC production lines, mainly located in cities like Shenzhen, Huizhou, Dongguan, and Zhuhai. Similarly, several FPC manufacturers in the Yangtze River Delta also started operations, making FPC one of the most attractive investment areas for private enterprises at the time. Li Xiaohua emphasized that the heavy reliance on imported equipment and materials remains a critical challenge, often referred to as the "bottleneck" that hinders the industry’s independent and controllable development. He stressed the importance of strengthening industrial capabilities and achieving scale to ensure sustainable growth in the IC sector. Currently, the IC industry is booming, fueled by both domestic consumption upgrades and industrial transformation. This environment is expected to drive a new wave of development. According to the National Plan for the Promotion of the Integrated Circuit Industry, by 2030, the main links of China’s IC industry chain are expected to reach international advanced levels. Several Chinese companies will enter the global top tier, achieving leapfrog development. This indicates that the IC industry will remain a central focus of national policy for the next decade or more. Looking ahead, Li Xiaohua noted that in the past few decades, electronic product specifications were largely set by Japanese and Western manufacturers. Now, China's massive market demand is pushing for new products tailored specifically for the Chinese market. This shift marks the beginning of the Chinese market leading the global trend and presents a unique opportunity for the Chinese IC industry to reshape the global market structure.

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