Investment opportunities in the new materials industry and enterprises

1. National policies vigorously promote
In order to develop the new materials industry, the government provides strong policy support. Up to now, the country has successively passed the High tech Industrialization New Materials Special Project, National Science and Technology Research and Development Program, Torch Program, 863 Program, 973 Program, and National Natural Science Foundation of China; Seven projects, including the Small and Medium sized Enterprise Innovation Fund, strongly support the development of the new materials industry. At the same time, the government has increased funding support for scientific and technological breakthroughs in the new materials industry, with an annual investment of over 500 million yuan. The macro guidance and policy orientation of the country will play an important guiding role in the research and development, industrialization, and large-scale production of new materials.
2. Downstream demand driving highlights investment value
From the perspective of industry development trends, China's chemical new materials industry is generally in an upward trend. On the one hand, due to the high technological barriers and strong bargaining power of the chemical new materials industry, it is still in the sunrise stage of rapid development and is also a key target of national policy encouragement and support for development. The overall development momentum is good. On the other hand, the downstream industries of the new materials industry mainly include automobiles, aviation equipment, communication equipment, home appliances, IT industry, and other electronic information industries. These industries are currently in a period of rapid development, which will inevitably increase the demand for new materials and provide a market foundation for the long-term rapid development of the new materials industry. For example, MDI in polyurethane has seen a significant increase in demand due to the high demand growth in the building energy efficiency market in 2007 (starting from July 1, 2006, the country began mandatory implementation of the 65% building energy efficiency standard in six eastern coastal cities including Beijing, Tianjin, Dalian, Qingdao, Shanghai, and Shenzhen).
3. The emergence of revolutionary new materials has changed the path of industrial development
Generally speaking, the development and commercialization of revolutionary new materials often bring about sudden changes in related industries. For example, with the commercialization process of domestically produced SiC chips, the problem of basic raw materials that has plagued the development of third-generation semiconductors in China has been solved. The production cost of high-quality LED and semiconductor devices will be significantly reduced, and the bottleneck of raw material development controlled by foreign manufacturers has been fundamentally reversed. Relevant industrial clusters will flourish. Therefore, the localization process of C chips will change the development path of the semiconductor industry.