Wen/Yu Yang, Institute of Financial Development and State owned Enterprises, China (Shenzhen) Comprehensive Development Research Institute, Registered International Investment Analyst; Hu Caimei, Deputy Director of the Institute of Financial Development and State owned Enterprises at the China (Shenzhen) Comprehensive Development Research Institute, Postdoctoral Fellow in Economics
In the 14th Five Year Plan, Shenzhen clearly proposed to "build a global electronic component distribution center and promote the integration and innovation of the international trade system for electronic components". The "Opinions on Several Special Measures for Relaxing Market Access in Shenzhen's Construction of a Pilot Demonstration Zone of Socialism with Chinese Characteristics" approved by multiple ministries and commissions support the establishment of a market-oriented electronic component and integrated circuit international trading center in Shenzhen, The Guangdong Provincial Government recently proposed in the "Several Measures to Promote the Reform and Innovation of Trade and Investment Facilitation in the Guangdong Pilot Free Trade Zone" to "support the construction of an Asia Pacific electronic component distribution center in the Qianhai Shekou area". Building a global electronic component distribution center in Shenzhen has received strategic support from the country and Guangdong Province. Against the backdrop of the severe impact of the "chip shortage" on the development of multiple industries such as intelligent terminals, smart cars, and high-end equipment, building a global electronic component distribution center is crucial for maintaining the security and stability of the supply chain of advanced manufacturing and strategic emerging industries in the Greater Bay Area and even the whole country, and consolidating the advantageous position of the electronic information industry in the Greater Bay Area, Gathering more industries and innovative resources and participating in a new round of international industrial competition at a higher dimension are of great significance.
1、 Opportunities and Challenges for Shenzhen to Build a Global Electronic Component Distribution Center
（1） Strategic Opportunities
Currently, we are in a window period of global "chip shortage". Due to factors such as rising upstream raw material prices, insufficient supply of semiconductor equipment, declining global chip production capacity, strong downstream demand, and US trade intervention, there has been a serious imbalance in global chip supply and demand since the end of 2020. The "chip shortage" has extended from the chip field to the manufacturing field, and is expected to be alleviated by 2023. In 2021, the amount of imported chips in China reached nearly 440 billion US dollars, and Shenzhen has strong demand support for building a global electronic component distribution center.
The market sales pattern dominated by authorized distribution mode is expected to break. With the continuous upgrading of chip manufacturing technology, the chip manufacturing process has gradually approached the physical limit, increasing the cost of propulsion, and the difficulty of reducing the unit cost of transistors due to process miniaturization is constantly increasing. In the future, core chip manufacturers are likely to extend their business upwards or downwards under competitive pressure, forming a platform based enterprise to intervene in the upstream and downstream industry chains. On the one hand, they will work together with upstream to promote innovative research and development of chips in materials, structures, media, and other fields. On the other hand, they will work with downstream to achieve low-cost and integrated goals by applying demand. The traditional chip product authorization and distribution model is likely to move towards a platform based development model.
The global demand pattern for chips will undergo significant changes. According to IC Insights, the global automotive industry's integrated circuit (IC) shipments increased by 30% in 2021, far exceeding the 22% increase in total IC shipments last year. Automotive electronics will contribute to important future growth in the electronics industry. Shenzhen's automotive electronics industry resources rank first in the country, with a good industrial foundation. By 2020, there were more than 1500 manufacturers, with an output value of approximately 150 billion yuan
QQ