China Electronics News has selected ten electronic information industries in 2021

1

The 14th Five-Year Plan for the electronic information industry got off to a good start

The year 2021 will be a milestone in the history of the Party and the country. The Communist Party of China (CPC) will celebrate its centenary, and the CPC Central Committee with Comrade Xi Jinping at its core will lead the people on a new journey toward the second centenary goal. Under the leadership of the Party, the electronic information industry has achieved a historic leap. Data from the Ministry of Industry and Information Technology show that from January to November 2021, the added value of China's electronic information manufacturing industry above designated size increased by 16.2% year-on-year, export delivery value increased by 12.6% year-on-year, and software business revenue increased by 18.3% year-on-year. The number of AI enterprises accounts for one quarter of the world, and the market size of cloud computing, big data, blockchain and the scientific research strength of quantum computing rank first in the world. The 14th Five-Year Plan for the electronic information industry got off to a good start.

2

The digital economy has become a key driver of stable economic growth

On November 1, 2021, China formally applied to join the Digital Economy Partnership Agreement (DEPA). Joining the DEPA demonstrates China's openness to participate in shaping the rules of the global economy, and will help China increase its competitiveness and influence in the digital economy. The added value of core industries in China's digital economy accounted for 7.8 percent of the country's GDP, making the digital economy the world's second largest and a key driver of stable economic growth, according to a report by the Cyberspace Administration of China. In 2021, China's industrial digitalization and digital industrialization will continue to advance. The numerical control rate of key processes in key manufacturing fields and the popularity rate of digital R&D and design tools will increase significantly. New scenarios, new modes and new business forms such as collaborative R&D and design, unmanned intelligent inspection, digital factories and smart mines will emerge vigorously. Innovation capacity in key areas such as integrated circuits, new displays, communications equipment, and intelligent hardware has significantly improved. By the end of November 2021, the number of apps monitored in the Chinese market reached 2.72 million, according to the Ministry of Industry and Information Technology. From January to November, the mobile Internet traffic reached 200.08 billion GB, up 34.3% year on year, and digital industrialization accelerated comprehensively. China has become an important source of global digital economy innovation.

3

China leads the world in 5G network coverage and user scale

On July 5, 2010, ten departments including the Ministry of Industry and Information Technology released the 5G Application "Sail" Action Plan (2021-2023) to further accelerate the commercial implementation of 5G converged applications in key industries. By the end of November 2021, there were more than 1.396m 5G base stations and 497 million 5G mobile phone connections, according to the Ministry of Industry and Information Technology. By the end of October 2021, 5G networks have covered all urban areas at prefecture-level and above, more than 97 percent of counties and 50 percent of towns and townships in China. By the end of November 2021, all administrative villages in China had broadband access, with the average download rate of optical fiber exceeding 100Mbps and the Internet penetration rate reaching 59.2 percent in rural areas. 5G industry applications are developing rapidly, with the number of virtual private networks in the industry exceeding 2,300 by the end of October. Both 5G network coverage and user scale lead the world.

4

Global wafer capacity expansion will reshape the foundry pattern

On March 17 and September 3, 2021, SMIC announced the launch of new investment and production expansion plans in Shenzhen and Shanghai respectively. On April 22, TSMC announced that it would expand its 28nm process capacity in Nanjing, aiming to reach 40,000 pieces per month by 2023. On November 10th TSMC announced a joint venture with SONY to build a fab in Japan. On March 24th Intel announced that it would invest $20 billion to build two new fabs in Arizona. Samsung also announced on Nov. 23 that it would spend $17 billion to build new fabs in the United States, making it Samsung's largest-ever U.S. investment. Since 2021, TSMC, Samsung, Intel, GMC and SMIC have announced a total investment of more than us $242 billion, thus reshaping the global FOUNDRY pattern.

5

"Core shortage tide" impacts global automotive supply chain system

On January 19, 2021, Ford suspended production at its Plant in Saarlouis, Germany, due to chip shortages and weak demand. On February 3rd GM announced it was halting production at three north American plants. Honda motor Co. will temporarily suspend some production at all of its U.S. and Canadian plants on March 16. According to industry research institutes, more than 10 million vehicles will be produced in 2021 due to the loss of core. In order to solve the problem of lack of automobile core, major automobile companies have promoted their own chip research or launched strategic cooperation with semiconductor manufacturers. In May, Volkswagen announced plans to design and develop its own high-performance chips. In October, Hyundai motor plans to develop chips independently. In November, Ford teamed up with semiconductor firm GMC to develop and produce high-end chips. The lack of core has profoundly changed the chain relationship of the automotive industry and will have a profound impact on the global automotive semiconductor supply chain.

6

The global panel industry has experienced the longest cycle of price rises

In July 2021, the prices of a variety of panels, including TVS and tablet computers, stopped rising and turned down, temporarily ending the longest price-rising cycle in the panel industry. Global panel prices gradually fell, and the industry entered a new round of integration cycle. This round of panel price increases began in June 2020 and lasted for 13 months. This round of panel boom cycle has long time, large increase, full-size general increase and obvious size differentiation, which has a lasting and far-reaching impact on the panel industry. During this period, BOE merged the 8.5-generation and 8.6-generation factories of CLP Panda, and TCL Technology acquired the production line of Samsung's Suzhou factory, which further improved its production capacity. Chinese enterprises have further established a dominant position in the field of LCD panels, and Korean enterprises have accelerated the pace of withdrawing from LCD production capacity. Panel industry is expected to gradually out of the cyclical fluctuations, become a certain growth of the industry.

7

China's quantum computing ranks first in the world

On October 25, 2021, a team from the University of Science and Technology of China (USTC) successfully built the 113 photon 144-mode quantum computing prototype jiuzhang-2, which is 10 times faster than the current fastest supercomputer by 24 quadrillion times. The super-strong computational power of "Jiuzhang-2" has potential application value in graph theory, quantum chemistry and other fields. On Oct 26, a team from the University of Science and Technology of China (USTC) built the 66-bit programmable superconducting quantum computing prototype "Zuchong No. 2", which is seven orders of magnitude faster than the current fastest supercomputer and six orders of magnitude more computatively complex than Google's 53-bit superconducting quantum computing prototype "Syunsuzuki". China ranks first in the world in quantum computing research, including optical route and superconductivity route.

8

China has achieved the world's first live 8K ultra hd TV broadcast

On February 1, 2021, the China Media Group's 8K ultra HD TV channel was launched on trial, marking the world's first realization of 8K ultra HD TV live broadcasting and 8K TV broadcasting under 5G network. On Feb 11, the China Media Group also broadcast the CCTV Spring Festival Gala live through 8K ULTRA HD TV channel, which was the first live broadcast in the 8K ultra HD TV field in the world. On October 12, CCTV announced the launch of CCTV16 Olympic Channel, the world's first 24-hour satellite broadcast 4K ultra HD sports channel. On October 19, the Ministry of Industry and Information Technology and other six national departments officially launched the promotion activity of "100 cities and 1000 Screens" ultra HD video, which will drive the coordination of all links of ultra HD video industry chain and create a good industrial development environment.

9

The concept of the meta-universe stimulates the investment enthusiasm of technology enterprises

Nvidia CEO Jen-Hsun Huang holds an event with a digital avatar on April 13, 2021. On July 13, The Chinese version of The Tencent-invested metauniverse game "Lobos" was officially launched. On August 29, ByteDance acquired Pico to grab the entrance to the metasverse. On October 29, Facebook officially changed its name to Meta in honor of the metasverse. On Nov. 2, Microsoft plans to make the metadverse a reality with new applications that integrate virtual environments. On December 3, NetEase Cloud Music completed the first "meta universe gong ceremony" in Fuxi Yaotai. On December 27, Baidu held a conference for AI developers in its own meta-universe product xirang. The meta-universe is regarded as a new generation of Internet platform, which will greatly stimulate the business potential of virtual reality, cloud computing, artificial intelligence, digital twin, blockchain, virtual people and other new generation of information technology. However, the meta-universe does not have mature application scenarios and viable business models, so it should keep prudent and rational in response to all kinds of speculation.

10

The state continues to strengthen supervision over Internet platforms

On April 10, 2021, the State Administration for Market Regulation ordered Alibaba Group to stop abusing its dominant market position and imposed a fine of 18.228 billion yuan. On July 4, the Cyberspace Administration of China (CAC) notified the APP store to remove didi Chuxing after it was found to have collected and used personal information in violation of laws and regulations. On Sept 17, the Ministry of Industry and Information Technology issued special guidelines on the management of external links, ordering apps such as wechat, Douyin and Taobao to make changes. On Oct. 8, the State Administration for Market Regulation fined Meituan 3.442 billion yuan for monopolizing its online food delivery platform in China. By December, the Ministry of Industry and Information Technology had notified 2,049 apps that infringed on users' rights, and removed 5.4 million apps that refused to rectify the situation. The state strictly supervises monopoly and unfair competition on Internet platforms, protecting the legitimate rights and interests of users, creating a level playing field and promoting the orderly development of platform economy.