In recent years, with the strong support of the “new infrastructure” policy, new infrastructure, represented by 5G and industrial Internet, has accelerated its extensive penetration into all areas of the economy and society. 5G network construction and user penetration have taken a leading position in the world.
Therefore, with the continuous promotion of 5G base station construction, the output value of communication equipment industry will further increase, driving the market demand for electronic components. According to the Ministry of Industry and Information Technology, in 2021, China built a total of 1.425 million 5G base stations, with more than 650,000 new 5G base stations, accounting for more than 60% of the global total. As of March 2022, the number of newly built 5G base stations reached 134,000. At the same time, according to the 14th Five-Year Plan for the Development of the information and Communications Industry issued by the Ministry of Industry and Information Technology, there will be 26 5G base stations per 10,000 people by 2025. According to the latest population data, it is estimated that the average number of new 5G base stations in the next few years is about 600,000.
- Consumer electronics
Consumer electronics mainly include smart phones and wearable products, which have entered the era of stock competition. As the most important terminal in the field of consumer electronics, the demand growth of smart phones has contributed significantly to the upstream electronic components. With the rising demand for replacement machines driven by 5G technology and the increasing number of related baseband chips, RF devices and other parts, the demand of electronic components industry will be further driven. According to the data, domestic smartphone shipments reached 340 million units by 2021, up 13.33 percent year-on-year.