China's Passive Component Industry Is Poised to Usher in a Golden Era of Development, Supported by Favorable Policies and Rising Market Demand

In recent years, demand for passive components in areas, including cloud computing, new energy, automotive electronics, and next-generation communication protocols, has been steadily increasing. A national action plan intends to raise the domestic content of core components and materials to 70% by 2025. This further highlights the importance of securing an autonomous and controllable supply of key electronic components to ensure the security and integrity of China's electronic component industry chain. To achieve this objective, the government has introduced multiple industrial policies to encourage and support the independent and controllable development of core electronic components.

Development Status of the Domestic Industry

Market size growth:
China's passive component industry boasts a substantial and fast-growing market size and has made notable technological and business advances. However, there remains a gap compared with the international forefront. In the future, the industry is expected to accelerate its shift toward miniaturization, integration, and import substitution.

Acceleration of import substitution:
Backed by national policies, the import substitution of passive components will further speed up. Companies will increase R&D investment and enhance technological capabilities, aiming to raise the proportion of domestically produced high‑end products and reduce dependence on imported ones.

Extensive downstream demand:
In consumer electronics, rising demand for smartphones and wearable devices is driving the growth of the passive component market. In the automotive industry, the development of electric vehicles and ADAS has significantly increased demand for passive components such as capacitors and inductors. Likewise, sectors like industrial automation and the Internet of Things are creating significant market opportunities. Meanwhile, rapid advances in these fields are elevating electronica China, which has emerged as a key exchange platform in the electronic component industry.

Numerous enterprises but limited competitiveness:
Chinese mainland hosts a great number of passive component manufacturers, but most are positioned in the third tier globally. Compared with top-tier companies in Japan and ROK, Chinese manufacturers still face gaps in technological capabilities and market share.

Gradually improving technological capabilities:
Some Chinese companies now possess independent R&D and innovation capabilities and have achieved technological breakthroughs in certain areas. However, they still need to further strengthen the core technologies required for high-end products to meet demand in the domestic high-end market.

Industry Development Trends

Increasingly evident trend toward miniaturization and integration:
As electronic products become thinner and lighter, demand for ultra-compact passive components will continue to grow. Meanwhile, increasing circuit complexity and constrained internal space in mobile devices are driving the integration of passive components to reduce costs and enhance performance.

Technological innovation-driven development:
The passive component industry will continue to adopt new materials and processes, driving technological progress across the sector. To meet requirements such as high‑frequency and high‑speed performance, companies will need to develop new technologies to enhance the performance and the added value of their products.

Intensified market competition:
As market demand grows, a growing number of firms will enter the passive component industry, resulting in even fiercer competition. In this case, companies need to strengthen their competitiveness through technological innovation, product upgrades, and expansion into new application markets.

electronica China will be held from July 1 to 3, 2026, in halls N1–N5 and W1–W5 at the Shanghai New International Expo Centre (SNIEC). A dedicated exhibition area for passive components will be created on-site, bringing together numerous leading exhibitors in the field. The themed exhibition area of this electronic components show is designed to provide exhibitors and attendees with a direct communication platform, showcase technological applications and innovative designs in passive components, and foster the collaborative advancement of the passive components industry.