Recently, with the re outbreak of the epidemic in Hong Kong, as an important port of China's foreign trade, the chip trade will be further affected, and the obstruction of the chip industry chain will also promote the price of raw materials to continue to rise. At the same time, because Shenzhen is adjacent to Hong Kong, has the largest distribution center of electronic products in Asia, and controls Huaqiangbei, which has nearly half of the spot electronic components in the domestic open market, the rapid spread and growth of the epidemic has made Huaqiangbei encounter closed control, and the import and export of the whole market has been greatly restricted, further affecting the nerves of the chip industry chain.

According to the statistics of relevant institutions, the average trade volume of Hong Kong accounted for 38% of China's total chip imports in 2020, which shows the important position of Hong Kong in China's chip supply chain. In addition, according to the data of the Ministry of industry and information technology, according to customs statistics, China exported 310.7 billion integrated circuits in 2021, a year-on-year increase of 19.6%; 635.48 billion integrated circuits were imported, with a year-on-year increase of 16.9%)

Since the new covid-19 epidemic has been raging around the world, the topic of localization of chips has never stopped. With the comprehensive promotion of 5g construction, the rapid development of high-frequency and intelligent electronic application terminals, the continuous improvement of downstream market demand such as Internet of things, new energy and automotive electronics, and the market demand for terminal components has always maintained an upward trend. Since the beginning of 2022, the electronic component industry has not ushered in the recovery of market supply and demand balance, and the price rise tide caused by the continuous shortage of supply still tends to continue to rise.

At the same time, due to the continuous escalation of the Russian Ukrainian war, chip production may further intensify. Ukraine supplies nearly 70% of the world's neon gas, which is an important raw material for the production of semiconductor chips. Moreover, Russia also controls 40% of the world's palladium and 9% of the world's nickel production. As a key raw material for chips, the price of neon has been rising since October 2021. After the conflict between Russia and Ukraine, the price has increased by about 20% - 30% again.

Facing the opportunities and challenges brought by the epidemic and shortage, based on China's vigorous promotion of the development of domestic chips, the number of imported foreign chips began to gradually decrease, and it is expected that the self-sufficiency rate of domestic chips will also reach 70% in 2025. Semiconductor chip is an important factor in the development of science and technology. While the self-sufficiency rate is improved, the capture of core technology and technical talents is still an inevitable important factor for us to pursue the breakthrough of chip industry. In terms of the overall industrial chain layout, Chinese enterprises are mainly in the middle and lower reaches of the industrial chain. The technology and industrial development level of the upstream links are still far behind foreign countries. Domestic manufacturers still have a long way to go in building their own brand of domestic chips.

Facing the fierce competitive market, Shenzhen kaiminghong Electronics Co., Ltd., as a rising army, private companies should keep up with the pace of policies in the process of enterprise development, focus on the core of the market, continue to strengthen scientific and technological innovation, equipment innovation and talent introduction, strengthen the stock and increase at the same time, and continuously improve and optimize the quality management system and service standard system, so as to enable enterprises to have a foothold, consolidate the foundation For a long time.

The progress of chip localization and substitution brought by the epidemic and shortage is also a key opportunity for China to improve the development of science and technology. Strong science and technology makes the country strong. China's chip industry still needs to move forward steadily, strengthen core technology and cultivate professionals, so as to truly realize the chip power.

Kaiminghong electronics is an electronic component manufacturer mainly engaged in import and export trade, and has branches and offices in Shenzhen, Xiamen, Suzhou, Meishan, Taiwan, Hong Kong, Canada and other places.