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Automotive Field in China Benefits Component Makers

I n 2018, the Chinese electronics market grew steadily in the first half, reflecting the expansion in demand for advanced automobiles, which integrate higher number of electronic components, and industrial equipment. However, the market began to slightly stagnate towards the second half as effects of U.S.-China trade impasse began to manifest, such as postponement of planned capital investments. At the same time, demand for smartphones, which drove the demand for electronic components and devices in the past, has leveled off. At present, the electronic components and devices market for the smartphone market has remained somewhere in the low level.

Against this backdrop, the automotive electronics market in China continues to see strong demand. Although most recent data show that automotive production and sales declined from the previous year, the number of electronic components has been growing on the back of increasing integration of electronic components in a vehicle. Technological innovations, such as advanced mobility technologies for autonomous driving and the shift to electric vehicles (EVs), have been continuing. Thus, the automotive market has been underpinning the demand for electronic components.

Auto field

ELEXCON 2018, a comprehensive exhibition of electronic components and semiconductors, was held in Dec. 2018 in Shenzhen, China. Despite the uncertainty of the market brought by the tensions of the U.S.-China trade impasse, exhibitors promoted a wide range of automotive solutions making the most of their respective strengths.

Generally, electronic components manufacturers have optimistic views on the U.S.-China trade war that will affect the trend of the Chinese market in the future. Many companies expect strong demand for electronic components and devices in the medium- to long-term, although they think it may be negatively affected for a short period of time.

These companies plan to continue to step up efforts in the Chinese market, anticipating the increase in new demand for components for automobiles and for fifth-generation (5G) network-related communications infrastructure.

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