Listing Success | Frost & Sullivan Supports Chaozhou Sanhuan (Group) Co., Ltd. in Successful Stock Listing in Hong Kong (6951.HK)

The electronic ceramic materials and components industry is currently in a high-growth stage driven by the upgrade and synergy of key national economic sectors such as communication, AI and data centers, consumer electronics, automotive electronics, semiconductor manufacturing and packaging, Dual Carbon & New Energy, and intelligent industrial control. Trends such as high-endization of consumer electronics, popularization of AI and the Internet of Things, electrification and intelligence of automobiles, expansion of global computing infrastructure, deepening of domestic substitution in semiconductors, and energy transition will collectively drive rising demand for all types of products, leading to continuous expansion of the industry scale.

• In the communication sector: By 2030, the number of global 5G/6G base stations is expected to exceed 20 million. The large-scale construction of 5G/6G base stations and their upgrade to gigabit broadband require high signal transmission stability and high-speed connectivity, driving demand for ceramic inserts and sleeves, high-capacityMLCCdemand. At the same time, the upgrade of high-speed optical communication networks increases demand for MT inserts and short fibers, as well as optical communication ceramic packaging tubes.

• In the AI and data center sector: Global data center capital expenditure exceeded 500 billion US dollars in 2025 and is expected to reach over 3 trillion US dollars by 2030. As AI data centers grow larger and have higher power density, the power density per rack has increased from less than 10 kilowatts to over 120 kilowatts. High-power computing devices pose challenges in heat dissipation and power supply, resulting in significant demand for high-capacity and high-reliability MLCCs and high-conductive ceramic substrates. Massive data transmission promotes the popularity of high-speed optical modules, further increasing demand for related ceramic communication devices.

• In the consumer electronics sector: Driven by the integration of innovative products and the acceleration of AI applications, global consumer electronics shipments are expected to increase from 2.2 billion units in 2025 to around 27 billion units by 2030. Devices are evolving toward smaller size, lighter weight, and more functionality, increasing the demand for smaller and more reliable electronic components. Small-size high-capacity MLCCs, small ceramic packaging bases, and alumina ceramic substrates will continue to see growing demand.

• In the automotive electronics sector: Global new energy vehicle sales are expected to increase from nearly 24 million units in 2025 to over 40 million units by 2030. Under trends of electrification, intelligence, and connectivity, both vehicles and onboard devices have increased demands for the number and performance of electronic components. The usage of MLCCs and ceramic packaging bases in new energy vehicles is significantly higher than in traditional fuel vehicles. To ensure stable operation of more vehicle systems, demand for ceramic substrates and pan-semiconductor ceramic components will also increase.

• In the semiconductor manufacturing and packaging sector: The process of domestic substitution is accelerating, and demand for high-purity, high-precision ceramic components is growing continuously.

• In the new energy sector: The transition to clean energy drivesSOFCits application in distributed power generation and energy storage, driving demand for related components such as SOFC diaphragms. At the same time, as new energy vehicles and energy storage devices require better heat dissipation and power regulation, demand for high-performance ceramic substrates and high-capacity MLCCs further expands.

• In the intelligent industrial control sector: The transformation toward automation and high-endization drives the expansion of industrial robot and smart sensor applications. High-voltage MLCCs and alumina ceramic substrates used in this field continue to enjoy strong demand.

As end-users' devices increasingly demand high-density integration, system stability, and lightweight design, the electronic ceramic materials and components industry is accelerating toward integrated functionality. Through collaborative optimization of material systems and component structures, multiple functions are integrated within smaller sizes. From a product function perspective, core products in the industry generally break through single-function limitations and upgrade to multi-characteristic integration to meet downstream device requirements. For example: MLCCs integrate high capacitance and high voltage resistance functions while maintaining filtering and voltage stabilization capabilities, meeting the compact design requirements of consumer electronics and vehicle-mounted devices; ceramic structural components expand from merely providing structural support to also having multiple properties such as insulation, heat dissipation, and corrosion resistance; ceramic substrates further integrate high thermal conductivity functions on top of insulation capabilities to meet the dual needs of heat dissipation and circuit stability of high-power devices.

Frost & Sullivan China's Frost & Sullivan Advanced Materials and Components industry is accelerating domestic substitution, becoming one of the key drivers in reshaping the industry landscape. Policy support is the primary driving factor. Various countries have identified advanced ceramics as strategic materials. Taking China as an example, the 14th Five-Year Plan and 2035 Long-Term Objectives Outline emphasize promoting breakthroughs in high-end advanced materials such as high-performance ceramics; the "14th Five-Year" Raw Material Industry Development Plan lists advanced ceramic powder technology as a key area for technological innovation; and the suggestions of the CPC Central Committee for the 15th Five-Year Plan clearly call for strengthening research on core technologies of advanced materials.

At the same time, the rapid expansion of downstream industries such as Chinese new energy vehicles, 5G communication, and semiconductor manufacturing provides extensive domestic application scenarios for electronic ceramic materials, offering domestic manufacturers opportunities for iterative development through practical application. Domestic companies will accelerate their breakthroughs in multiple areas, including ceramic substrates, high-end electronic inks, MLCCs, and ceramic communication components. Additionally, domestic substitution extends from end products to core raw materials and key processes, gradually forming a self-reliant full-chain system. With the support of cost and local service advantages, domestic enterprises continue to increase their presence in high-end markets such as vehicle-grade applications and semiconductor packaging, while expanding overseas. Domestic substitution is moving from past “single-point breakthroughs” to “systemic replacement,” further shifting the focus of global competitive advantage to China.

As industry demands for product performance, miniaturization, and reliability continue to increase, companies within the sector actively promote an integrated "materials-process" approach. By optimizing these three aspects—product performance, miniaturization, and reliability—enterprises can quickly respond to downstream product updates, improve yield rates, and achieve performance breakthroughs. In raw material production, precise control of core materials such as high-purity ceramic powders and electronic slurries helps reduce production fluctuations and material waste. In the process stage, meticulous management of key operations like extrusion molding and sintering ensures high consistency and reliability in product output. Overall, this integrated approach not only enhances technical response speed and yield rates but also provides cost advantages through coordinated processes, serving as a key driver for enhancing corporate competitiveness.

Frost & Sullivan China implements an operational model of "global deployment and regional adaptation" among enterprises in the industry, aiming to get closer to target markets, reduce regional costs, and mitigate trade risks. Companies establish production bases within domestic industrial clusters while setting up overseas manufacturing hubs to meet local market demands. They also deploy localized technical service teams in key overseas markets to shorten response times to demand, and obtain international certifications to meet regulatory requirements. The combination of global operations and regional adaptation optimizes costs and increases market penetration.