Since the beginning of this year, China's electronic information industry has maintained a steady development trend in a complex external environment, the growth rate of the manufacturing industry has maintained a leading position, imports and exports have grown relatively rapidly, investment growth has stabilized at a high level, industrial structure has accelerated adjustment, and innovation and development in emerging areas have continued to accelerate. However, due to the uncertainty of Sino-US trade relations and other factors, the economic development of the whole industry was stable in the fourth quarter.

1. Production growth remained stable

In the first three quarters, the added value of the electronic information manufacturing industry above designated size increased by 13.2% year-on-year, basically the same as the growth rate of the previous month, which was 6.8 percentage points higher than the growth rate of all industries above designated size, and the growth rate ranked first in the manufacturing industry. In terms of major products, the production of basic and emerging products grew rapidly, including 129.1 billion integrated circuits, up 11.7% year on year; Semiconductor discrete devices 664.1 billion, an increase of 29.4%; 3,890.7 billion electronic components, an increase of 20.9%; Monocrystalline silicon and polysilicon production increased by 62.4% and 2.6%. Slow or declining production of traditional terminal products, including 1.27 billion mobile phones, down 1.5% year-on-year; 22.34 million microcomputers, down 1.1%; There were 128.07 million notebooks, up 1.4% year on year.

2. The growth rate of imports and exports fell slightly

In the first three quarters, the export of high-tech products in China was 533.55 billion US dollars, an increase of 15.5%, showing a downward trend, down 5.0 and 2.8 percentage points compared with the first and second quarters respectively; Imports reached US $501.39 billion, up 20.6%, down 4.1 percentage points and 1.4 percentage points from the first and second quarters respectively. From the perspective of main products, the export value of integrated circuits increased by 28.4%, down 2.7 percentage points from the second quarter; Mobile phone exports increased by 16.1%, down 2.6 percentage points from the second quarter. From the perspective of export delivery value, from January to September, the export delivery value of electronic information manufacturing industry increased by 8.1% year-on-year. Among the subdivided industries, the communication equipment industry, electronic components and electronic special materials achieved rapid growth, and the export delivery value increased by 14.3% and 17.5%, respectively.

3. Investment growth picked up markedly

In the first three quarters, fixed asset investment in the electronic information manufacturing industry increased by 18.3% year-on-year, which was 1.4 percentage points lower than the growth rate in the first half of the year, but still 9.6 percentage points higher than the growth rate of manufacturing investment. Among them, the integrated circuit manufacturing industry, optical cable manufacturing industry, and optoelectronic device manufacturing industry have a good investment momentum driven by emerging markets such as automotive electronics, artificial intelligence, and 5G, with year-on-year growth of 64.7%, 60.7% and 58.2%.

(4) The level of industry efficiency needs to be improved

In the first three quarters, the electronics manufacturing industry achieved a revenue of 7,595.5 billion yuan, an increase of 9.3%; Total profit was 333.3 billion yuan, up 2.3 percent year on year. The profit margin of the industry is 4.4%, 2.04 percentage points lower than the average level of industrial enterprises. It is worth noting that the industry-wide accounts receivable increased by 23.9%, finished goods inventory increased by 13.4%, the main business cost increased by 9.8%, all higher than the industry revenue growth rate, showing that enterprises are still facing greater profit pressure.

5. The software industry accelerated its growth

In the first three quarters, China's software and information technology service industry completed software business revenue of 4,449 billion yuan, an increase of 15%, the growth rate increased by 0.9 percentage points. From a quarterly point of view, the industry-wide software business revenue growth rate in the first, second and third quarters was 14%, 14.7% and 16.4%, respectively, showing an upward trend quarter by quarter. The profit reached 568.9 billion yuan, up 14.4% year on year, and the growth rate increased by 1 percentage point year on year.

In the future, our economy will face multiple pressures at home and abroad. Overseas, the world economy has recovered steadily, but there is a marginal weakening trend, and the recovery of the world's major economies has begun to diverge. At the same time, the ongoing fermentation of Sino-US trade friction, global monetary tightening and geopolitical instability and other issues have also made China face external pressure. On the domestic front, on the one hand, deleveraging, environmental restrictions on production, investment, consumption and exports have led to downward pressure on the economy; On the other hand, the existence of exchange rate risk, local debt risk, state-owned enterprise debt risk, real estate market risk and Internet finance risk brings uncertainty to the development of the whole industry.

(News source: Electronic Federation)