Electronic Specialized Materials Manufacturing: Aligning with the National Computing Power and Localization Strategies — High-Quality Enterprises Unlock a Second Growth Curve Through Innovation

From 2023 to 2025, under Fuyin New Materials’ non-direct customer–led business model, revenue from such arrangements accounted for 44%, 48.91%, and 44.33% of its total operating revenue, respectively. Under this model, downstream terminal brand manufacturers or large ODM solution providers designate Fuyin as an approved supplier and specify its products in design schematics; orders are then placed directly by their designated die-cutting service providers. From 2023 to 2025, Fuyin New Materials’ sales to its top five customers accounted for 24.08%, 22.7%, and 23.05% of its total operating revenue, respectively. During the same period, peer companies reported the following proportions of annual sales revenue derived from their top five customers: Shihua Technology—77.53%, 67.7%, and 71%; Sdick—25.98%, 28.21%, and 28.4%; Jinghua New Materials—10%, 9.99%, and 10.16%; Yongguan New Materials—11.98%, 13.16%, and 10.27%. Moreover, technical and other barriers within the electronic specialized materials manufacturing industry cannot be overlooked. 2.2 Formulation, coating, and foaming processes constitute significant technical barriers, continuously raising industry entry thresholds. In recent years, China’s domestic electronics information manufacturing industry—a key strategic emerging sector—has grown rapidly, with continuous improvements in technological innovation capability and sustained expansion in industrial scale. Beyond consumer electronics, precision functional film materials are widely applied across numerous sectors including automotive, home appliances, lithium battery components for new-energy vehicles, pharmaceuticals, and aerospace. The functional film materials industry is a strategically emerging industry prioritized and supported by the Chinese government and holds an important position in the national economy. Benefiting from rapid growth in consumer electronics, new-energy industries, and others, high-performance film materials are expected to offer even greater development potential going forward. China is the world’s largest consumer market for functional film materials: its market size reached RMB 148.1 billion in 2023, representing a 14% year-on-year growth; in 2024, it expanded further to RMB 169.05 billion, with a compound annual growth rate (CAGR) of 14.48% from 2018 to 2024. As demand continues rising from downstream sectors—including new-energy vehicles and next-generation displays—the market size is projected to grow further. Electronic specialized materials are not standardized commodities. Applications such as display, adhesion, cushioning, thermal conduction, and insulation often require non-standard, customized solutions. Companies must therefore master end-to-end capabilities spanning adhesive formulation synthesis, polymer modification, precision coating processes, PU foam production, substrate treatment, and online inspection. Each generation of downstream devices resets material specifications; suppliers must maintain both rapid multi-model sampling capacity and consistent batch-to-batch performance—e.g., light transmittance, adhesive strength, resilience, and VOC emissions—placing significantly higher technical iteration pressure on them than on traditional adhesive product manufacturers. Fuyin New Materials exemplifies an effective breakthrough against this barrier. Fuyin has established three major technology centers—in Anhui, Guangdong, and Tianjin—with a combined area exceeding 5,000 square meters and over 50 R&D personnel. It has developed core competencies in autonomous adhesive polymerization, independent PU foam production, proprietary equipment design, and in-house process development. In the field of precision functional foam, Fuyin is among the few domestic enterprises mastering PU foam production technology and achieving mass production. Its products deliver composite performance attributes—including high resilience, corrosion resistance, sound insulation, shock absorption, dustproofing, and waterproofing—making them suitable for highly precise applications such as under-display cushioning, battery protection, and speaker cavity vibration damping.

Fluorosilicon New Materials: Strategic New Materials for Advanced Manufacturing

Source: Puhua Youce 4. Competitive Landscape of Fluorosilicon New Materials The global fluorosilicon new materials market exhibits a tiered competitive structure. Overseas leaders—including Dow, Wacker, and Shin-Etsu—dominate high-value-added premium segments such as semiconductors and aerospace, leveraging proprietary synthetic technologies, accumulated formulation expertise, and long-standing customer certification barriers. Domestically, the competitive landscape is markedly segmented: integrated industry leaders—including Juhua Co., Ltd., Dongyue Group, and Xin’an Chemical—leverage upstream advantages in fluorspar and industrial silicon to achieve economies of scale in basic fluorosilicon monomers, while actively advancing domestic substitution of high-end fluorosilicon rubber and specialty fluorosilicon oils. These firms have entered supply chains for new-energy and high-end equipment sectors, driving continued consolidation in industry concentration. Meanwhile, numerous small- and medium-sized manufacturers remain clustered in generic, low-end fluorosilicon product segments, where severe product homogeneity prevails and competition centers primarily on price. Coupled with tightening environmental, energy consumption, and safety regulations, smaller-scale capacities are being rapidly phased out. Industry competition is thus shifting away from pure capacity rivalry toward comprehensive capabilities encompassing full-industry-chain integration, technological R&D, and downstream customer certification. 5. Industry Trend Analysis for Fluorosilicon New Materials (1) Continuous Expansion of Downstream Applications Drives Demand Growth in Emerging Sectors Fluorosilicon new materials combine exceptional properties—including wide-temperature tolerance, chemical corrosion resistance, and electrical insulation/sealing—and are rapidly penetrating high-value-added application areas beyond traditional industrial sealing and coatings, such as new-energy, semiconductors, aerospace, and AI liquid cooling. Key growth drivers include sealing for photovoltaic n-type modules, protection of powertrain, battery, and electronic control systems in electric vehicles, ultra-high-purity electronic reagents for semiconductor chips, and fluorinated liquids for data center cooling. Expanding downstream terminal capacity, coupled with rising per-unit material consumption, creates dual demand tailwinds. Relative to traditional markets, new-energy and semiconductor sectors exhibit faster growth in demand for high-purity and specially modified fluorosilicon products, propelling structural transformation—from generic materials toward specialized, customized, high-performance variants—and unlocking long-term market growth potential. (2) Deepening Domestic Substitution of High-End Products: Technical Certification as the Core Barrier China is already the world’s largest producer of fluorosilicon materials; however, high-end products—including electronic-grade fluorosilicon reagents and aviation-grade fluorosilicon elastomers—remain heavily reliant on overseas imports, resulting in low domestic substitution rates. The industry has now entered a critical phase of deep substitution. Competition logic is shifting decisively away from low-end capacity-based price wars toward integrated technical competition—encompassing high-purity synthesis and purification processes, formulation modifications, batch consistency, and lengthy downstream customer certification cycles. Leading enterprises are intensifying R&D investment to overcome bottlenecks in ‘choke-point’ areas such as high-purity monomer production and precision synthesis. Firms that first secure certifications from leading semiconductor and aerospace customers gain access to higher gross margins. Conversely, SMEs lacking core technologies remain confined to low-value-add segments, reinforcing the Matthew effect and deepening industry stratification. (3) Accelerated Green and Low-Carbon Transformation: Integrated Industrial Chains Emerge as the Strategic Direction Tightening environmental policies and China’s dual-carbon goals are steering the fluorosilicon industry away from extensive, capacity-driven expansion toward green manufacturing and resource circularity—now mandatory development imperatives. Fluorspar—the primary fluorine source—is a strategically scarce resource. Resource constraints compel enterprises to improve raw-material utilization efficiency, develop by-product recovery systems, and implement resource-recovery processes for fluorine-containing wastewater and exhaust gases—thereby reducing energy consumption and pollutant emissions. Integrated industrial chain development has become the preferred strategy for industry leaders: vertically integrating upstream to secure stable supplies of core raw materials (e.g., fluorspar, industrial silicon), and extending downstream into modification processing and finished-product integration—minimizing cost volatility arising from intermediate links.

Materials Suppliers See Growth in Batteries, Electronics and Aerospace as Traditional Markets Struggle

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Materials suppliers like DuPont and Cabot report growth in batteries, electronics, and aerospace sectors, offsetting declines in traditional markets. Increased demand for advanced materials, such as DuPont's Tedlar film for solar panels, highlights this industry shift.

Plastics News

2026-11-03

Materials Suppliers See Growth in Batteries, Electronics and Aerospace as Traditional Markets Struggle

Materials Suppliers See Growth in Batteries, Electronics and Aerospace as Traditional Markets Struggle

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