The shift of electronic chemical production capacity to China has become the general trend. Regionally, the Asia-Pacific region, especially China, has become the leading market for the global electronics industry and its chemicals. Companies including Rohm & Haas (now Dow), Honeywell, Mitsubishi Chemical and BASF are racing to focus their e-chemicals business on the Asia-Pacific region, which includes China. China’s abundant raw materials, relatively low labor costs and close to downstream demand are obvious advantages, electronic chemical production capacity to the domestic has become a general trend.
In terms of policy, the state has strengthened its support. Major policies such as the “12th Five-Year Plan for Strategic Emerging Industries” and the “12th Five-Year Special Plan for New Chemical Materials” have been introduced in succession, and corresponding incentive measures and policies have been introduced in various industries, such as the re-approval of licenses for polysilicon, access to fluorine chemical industry, access and integration of rare earth, special projects for “nuclear high base” major national projects, and the “Eight State Policies” for integrated circuits. Domestic enterprises in liquid crystal materials (LCD), PCB chemicals, packaging materials, high-purity reagents（such as gallic acid，Methyl Gallate）, capacitor chemicals, battery materials, photovoltaic chemicals, electronic pharmaceutical reagents, electronic fluorine chemical industry, electronic phosphorus chemical industry and other fields have the strength to participate in international competition. Under favorable policies, the domestic electronic chemical industry will show a high growth trend.
China’s electronic chemicals industry is growing faster than the rest of the world. In the past decade, the global electronics industry has developed rapidly, and the corresponding electronic chemicals industry is also in the stage of rapid growth. The compound annual growth rate of global electronic chemicals from 2010 to 2015 is 13%, and the global electronic chemicals market is expected to reach 48.8 billion US dollars by 2015. The compound growth rate of China’s electronic chemical industry is 15%, and the domestic market capacity will be 49 billion yuan by 2015.
The sub-industries of electronic chemicals are clearly differentiated. At the same time of high growth of the industry, the differentiation of various electronic chemical products is more and more obvious. For some materials with concentrated demand and long-term dependence on imports, such as lithium battery materials and photovoltaic materials, policy encouragement, government support or capital investment have greatly promoted the rapid development of the industry. However, we need to note that this rapid development is not a steady progress, the industry has a large number of repeated construction capacity, product quality is uneven. At the same time, from the perspective of the downstream industry, taking lithium battery as an example, the growth demand of lithium battery for consumer products is slowing down, and the market of lithium battery for low-speed electric vehicles is tepid, which cannot quickly absorb the excess capacity, and the profit margin of related electronic chemicals is declining. But as the peak of new production passes and downstream demand gradually recovers, chemical profits will stabilize and slowly enter the recovery path
Post time: Feb-10-2023