By 2026, high-end applications such as the explosive growth in AI computing power, automotive intelligence and high-speed communications will become the core growth drivers for the electronic components industry. This will drive a shift in the industry’s demand structure from consumer-grade to high-end industrial-grade and automotive-grade applications, leading to a surge in demand for high-end components.

Demand in the AI server and optical module sectors is particularly pronounced, directly driving an explosion in demand for high-end crystal oscillators, memory chips and power devices. AI servers have significantly raised the bar for component requirements, demanding “high reliability, low jitter and high bandwidth”. 625MHz true centre-frequency, 15fs ultra-low jitter crystal oscillators have become core supporting components for 400G/1.6T/3.2T optical modules. The TK-D625M differential crystal oscillator launched by domestic manufacturer TaiJing Technology, with a typical jitter value of 15fs, surpasses Japanese and American manufacturers to become the world’s lowest-jitter mass-produced crystal oscillator, taking the lead in entering the core supply chain for AI server SerDes. Meanwhile, high-end memory chips such as HBM and DDR5, designed to meet AI computing demands, have become key strategic focuses for the three major memory giants. Supply shortages are expected to persist until 2030, with the supply gap remaining consistently above 20%.

The automotive electronics sector has emerged as another major growth driver, with the widespread adoption of autonomous driving and domain controllers driving a sustained rise in demand for automotive-grade components. Automotive-grade products such as MLCCs, resistors and crystal oscillators must meet operating temperature ranges of -40°C to 125°C, high reliability standards and AEC-Q100 certification requirements. Automotive-grade products from several domestic manufacturers have already passed certification, successfully entering the automotive supply chain and gradually replacing imported products. Furthermore, third-generation semiconductor SiC/GaN devices are rapidly penetrating the new energy vehicle and industrial power supply sectors. With improved yield rates and falling costs for 8-inch SiC substrates, these devices are becoming more widespread from high-end to mid-range models, emerging as a new growth driver for the industry.