"China's Battle for the Title of 'Membrane City'!"

In recent years, driven by the increasing demand in downstream sectors such as new displays, new energy, and energy conservation and environmental protection, the market size of functional film materials in China has significantly increased. According to statistical data, it reached 162.3 billion yuan in 2024, a year-on-year growth of 8.9%. Among them, optical functional films account for approximately 39.5%, separation functional films account for about 28.4%, packaging functional films account for around 17.6%, and electrical functional films account for about 7.3%.

The functional membrane materials industry is one of the strategic emerging industries that the country prioritizes to support and develop. By integrating local characteristics, many regions in China have started to cultivate the functional membrane materials industry. After years of development, some regions have achieved fruitful results and become competitive "players" for the title of "China's Membrane Capital/City."

Ningbo Jiangbei High-tech Zone is gradually developing into a global innovation hub and industrial cluster for optical films. According to statistics, the film industry output value in this area reached 3.06 billion yuan in 2023, a year-on-year increase of 16%.

Back in 2007, Ningbo Exciton Technology Co., Ltd. was established in Ningbo, marking the birth of the first domestic optical film manufacturing enterprise. In November 2016, Exciton Technology successfully went public and has now become a leading company in the field of optoelectronic display films in China. It has made significant contributions to breaking foreign monopolies in the optical film industry and advancing to the international forefront. Currently, Exciton Technology's main business is divided into three sectors: optical films, photovoltaic films, and automotive films. Its optical film products include diffusion films, brightness enhancement films, quantum dot films, COP, DOP, POP composite films, and silver reflective films, among others. Exciton Technology's diffusion film products have captured over 30% of the global market share. In 2018, it was recognized as a national-level single-product champion demonstration enterprise.

Ningbo Changyang Technology Co., Ltd. was established in 2010 and listed on the STAR Market in November 2019. The company specializes in the production of reflective films, optical base films, separator films, backsheet base films, and other special functional films, making it a globally leading high-tech enterprise in the field of polymer functional films. Changyang Technology entered the reflective film market in 2012, achieving breakthroughs in R&D and process technology. By independently designing production lines, the company's products achieved comprehensive performance at an internationally leading level, effectively filling domestic gaps and breaking the technological monopoly of Japan and South Korea in the optical reflective film sector. Notably, in 2017, Changyang Technology successfully surpassed Japan's Toray to become the global market leader in optical reflective films and has maintained this leading position for five consecutive years. By 2023, its global market share reached 62%, setting a new record and solidifying its dominance in the global optical reflective film niche industry. In 2021, its optical reflective film product successfully passed the third batch of national-level "Single Champion Product" recertification.

Ningbo Huizhixing New Material Technology Co., Ltd. was established in 2012 and has now become a leading enterprise in China's high-end optical hardening film and related surface treatment film sector. It is one of the very few companies globally capable of producing liquid crystal polarizer surface treatment films, foldable hardening films, anti-reflection films, and other related products.

In 2017, based on the concept of the Membrane Fantasy Power Town, Ningbo Jiangbei High-Tech Zone proposed a plan to build the "Capital of China's Optical Film Industry" and the "Capital of China's Membrane Industry," aiming to create the largest, most technologically advanced, and internationally leading optoelectronic film production base in China. The Membrane Fantasy Power Town boasts a complete industrial chain from base film to functional film, with an annual production capacity of 500 million square meters, accounting for 30% of the global optical film production capacity. The annual shipment volume reaches 170 million square meters, also accounting for 30% of the global optical film production capacity. Among the three companies in China with an annual production exceeding 100 million square meters, two are located in the town. Additionally, the town's membrane industry output value has maintained rapid growth for four consecutive years, with an average annual growth rate of 82.5%. There are currently 10 national high-tech enterprises, one listed on the ChiNext board, one listed on the STAR Market, and a total of 10 listed companies or holding subsidiaries.

At the current stage, Ningbo Jiangbei High-Tech Zone is advancing on the path of accelerating new industrialization and has proposed the creation of a "133" industrial cluster system. It will expedite the layout of functional film materials, focusing on dominant products such as reflective films, hard-coating films, and diffusion films. The zone will prioritize breakthroughs in key core technologies and accelerate the research, development, and industrialization of cutting-edge functional films like quantum dot films and flexible substrate films.

In its future development plan, Ningbo Jiangbei High-tech Zone will focus on cultivating the "optical film" digital economy标志性产业链, fully leverage the leading role of leading enterprises, continue to consolidate its top position in diffusion film, reflection film, and hardening film industries. Meanwhile, it will make efforts to advance in the direction of new flexible displays and new energy films. In addition, relying on the Zhejiang Functional Film Materials (Optoelectronics) Innovation Center, Ningbo Jiangbei High-tech Zone will implement the "Ten Films in Ten Years" initiative, planning to research and produce ten types of functional films within a decade. It aims to become the first to achieve full coverage of single-item champions in the optical film industry chain across Zhejiang Province and even the entire country, and to build itself into the capital of single-item champions in the optical film industry.

The membrane materials industry in Suqian has achieved remarkable development in recent years. Since its inception in 1997, it has formed a relatively complete industrial chain and has secured a significant position in both domestic and international markets.

According to statistics, from January to August 2024, the number of scale enterprises in Suqian's membrane materials sector has reached 63, with a cumulative output value of 16.975 billion yuan, achieving a growth rate of 19.21%. Suqian has formed a relatively complete industrial chain from raw material processing, substrate production to functional film research and development, and high-tech product applications. The domestic market share of optical material series products, such as optical substrates, optical films, and high-end lithium battery substrates, exceeds 25%. Key products like heat shrink battery labels and heat shrink films have a market share of over 50% in the international market.

In 2013, the film materials base was recognized as a national torch characteristic industry base. By the end of September 2023, Suqian issued the "Suqian City Membrane Materials Industry High-Quality Development Three-Year Action Plan (2023-2025)," clearly identifying optical films, new packaging films, new energy films, electronic films, and water treatment films as the main directions for development. The plan focuses on functional and high-end film materials, aiming to build Suqian into a highland for the membrane materials industry with the largest domestic scale and leading technology throughout the entire industrial chain.

As the leading enterprise in Suqian's membrane material industry, Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. was established in 1997 and listed on the Shenzhen Stock Exchange in 2011. It is the base of China's biaxially oriented film industry, the National Torch Program Suqian Film Special产业基地, and one of the top ten enterprises in China's light industry plastics industry. The company has five major production bases, mainly producing polyester functional membrane materials, optical materials, new energy materials, information materials, energy-saving window film materials, and heat shrinkable materials, etc. Shuangxing New Materials' high-performance polyester film materials account for 8% and 16.3% of the international and domestic markets respectively, both ranking first. One out of every five televisions globally uses "Shuangxing" optical membrane modules. The global market share of variable information materials exceeds 50%, the global market share of energy-saving window film materials reaches 40%, and the global market share of heat shrinkable materials reaches 20%.

According to statistics, the output value of membrane materials in Suqian already accounts for 1/20 of the national total, with a comprehensive range of product categories. In the future, the focus will be on developing functional and high-end membrane materials, delving into fields such as optical films and electronic films, and seizing the forefront of advanced membrane material technologies. The goal is to achieve an output value of 40 billion yuan by 2025 and increase the national share to 20% by 2030, establishing Suqian as a true "Membrane City of China."

In Taihu County, Anqing City, Anhui Province, a sizable emerging functional film new materials industry cluster has risen from scratch over the past decade, becoming a highlight of the county's economic development. This cluster was successfully included in the list of national specialized and distinctive SME clusters (2023) released by the Ministry of Industry and Information Technology. Specializing in the R&D and production of optical films, flexible PI films, polarizer PVA films, special optical polyester films (PET), and OCA optical adhesives, among other products, the Taihu County functional film new materials industry cluster provides key materials and process support for domestic and international optoelectronic displays, PCB/FPC, and other electronic information industries. The performance and specifications of these products have reached internationally advanced levels, playing a significant role in addressing the shortcomings of display industry development and promoting the domestic substitution of functional film base materials.

The successful establishment of Jinzhan Technology and its favorable development environment have attracted partners from the industry chain. Huqiang Technology, as a producer and seller of polyimide films, was mobilized by Jinzhan Technology to invest in Taihu. Subsequently, Huqiang Technology brought in Federal New Materials (which produces polyimide films), and downstream companies such as Kecheng New Materials and Shengya Technology also settled in Taihu, forming a significant driving effect for the upstream and downstream of the industry chain.

By the end of 2024, Taihu County has established an industrial chain that includes upstream base films and coating materials, midstream coating industries such as polarizer release films and optical adhesives, and downstream applications in display modules, film cutting, and semiconductor film materials. The county has gathered 100 enterprises across the functional film industry chain, including companies like Jinzhang Technology, Saimet Photoelectric, Jutai Vision, Fuyin New Materials, and Qiangrun New Materials. Among these, 36 are large-scale industrial enterprises, with the output value of functional film large-scale industrial enterprises accounting for over 50% of the county's total large-scale industrial output value for the first time, reaching 4.529 billion yuan. Additionally, Taihu County is home to 7 national-level "Little Giant" specialized and innovative enterprises, 6 of which are in the functional film new materials industry. The county also boasts 2 listed companies, 1 NEEQ-listed company, 1 company under IPO guidance, 41 high-tech enterprises, and 14 provincial-level innovation platforms.

Taihu County regards the functional membrane new materials industry as the top industry in the county and has set the development goal of "hundred-billion-yuan enterprises, trillion-yuan industry", and is committed to building it into the "Membrane Capital of China".

Sources: Relevant company websites, annual reports, Zhiyan Consulting, Suqian Daily, Suqian Network, Baidu, Suxin News, Jiangsu International Online, Suqian Municipal Bureau of Industry and Information Technology (Digital Economy Bureau of Suqian City), Taihu News Network, Zhejiang Provincial Association for Research on Development Zones, Lanxi Release, New Jiangbei, Huxi New Area, Jintai Information, Hefei Online, Upstream News, Economic Daily, Anhui Daily, Sohu.com, etc.