Connectors are communication bridges in electronic circuits and are widely used in different fields such as data communications, computers and peripherals, consumer electronics, automobiles, industry, medical care, aerospace and military, and are synchronized with the growth of downstream industries. Due to the different application scenarios of connectors, the technical thresholds are quite different. For the data and communication fields, the quality and stability of connector products are very demanding.

At present, the automobile is one of the sub-industries with the largest scale of connector application, and data and communication connectors have become the most obvious application of growth. Take Huawei, a global leader in communications and data business, as an example. In 2018, at least six of its 92 core suppliers were professional communications connector manufacturers, and the importance of connectors is evident.

We believe that in the future, with the further improvement of 5G network carrying capacity, the construction of data centers, and the development of autonomous driving technology, the demand for connectors will be upgraded to higher speeds.

Based on this, we are optimistic about the high-speed backplanes of data and communication equipment, 25G/50G high-speed interfaces (for 5G communication infrastructure, data center 100G/400G optical module applications), and three high-growth and high-value-added markets for autonomous vehicles .

With the rapid rise of connectors downstream and the trend of global industry transfer, the time for Chinese connector manufacturers to penetrate into the high-end market is gradually ripe. At present, the three largest global connector suppliers are TE Connectivity, Amphenol and Molex. They have a high level of research and development, a complete range of products, and a wide range of application fields. Globally, the market share of the three US and European manufacturers in 2017 was approximately 35%, which is an absolute leading edge. Among the more influential circular push-pull self-locking connectors, internationally well-known brands include Lemo, ODU, and FISCHER. Domestic well-known brands include QUANMA connectors (QM), and AVIC Optoelectronics ( JONHON) and so on.

With the expansion of China's domestic market, domestic manufacturers such as Luxshare Precision have made breakthroughs in scale, and are expected to achieve a gradual penetration of the high-end market under the trend of strong domestic demand and the rise of downstream ICT manufacturers, independent control, and global industrial transfer. Among them, business layout and scale, technical capabilities, and customer base are the key indicators for domestic manufacturers to achieve breakthroughs.