A staff member tests 5G signal at Haikou Meilan International Airport in Haikou, south China's Hainan Province, Dec. 24, 2020. (Xinhua/Pu Xiaoxu)
BEIJING, Jan. 15 (Xinhua) -- China will embrace booming development of 5G with the 5G investment expected to peak during the period of 2022 to 2023, the Shanghai Securities News reported on Friday.
More tier-2 and tier-3 cities in the country will increase investment in the 5G base station network and other infrastructure construction.
The booming development of the 5G is attributed largely to the country's favorable policies.
The Ministry of Industry and Information Technology (MIIT) on Wednesday unveiled an action plan for the innovative development of industrial internet from 2021 to 2023.
The country aims to establish 30 5G-connected factories in 10 key industries by 2023, said the plan, which has injected strong impetus into 5G development.
Earlier, Xiao Yaqing, minister of the MIIT, said that the country will add more than 600,000 5G base stations in 2021.
According to a survey conducted by the Shanghai Securities News on listed companies in the 5G industrial chain, many are upbeat about the 5G development in the country.
"5G investment continues to accelerate, and it is expected that the investment peak will be from 2022 to 2023," said Xu Huan, chairman of Bomin Electronics Co., Ltd. (603936.SH).
At present, the major cities in the country have rolled out the 5G base stations. With their gradual coverage in tier-2 and tier-3 cities, the 5G investment will reach its peak. After that, the 5G application will play a role and drive growth of related industries, Xu added.
Amid the rising investment in the 5G, opportunities also emerge in sectors such as 5G radio frequency (RF) and the session initiation protocol (SIP) packaged modules.
Thanks to the development of 5G mobile phones, the RF track, power amplifiers (PA), filters, etc., have gained favor of the investors.
Maxscend Microelectronics Company (300782.SZ) and Shenzhen Sunway Communication (300136.SZ) have frequently increased their investment in the above sectors.
5G mobile phone is also an area attracting more investment.
A report recently released by the China Academy of Information and Communications Technology (CAICT) shows that China's mobile phone shipments in 2020 were 308 million units, a year-on-year decrease of 20.8 percent. However, the cumulative shipments of 5G mobile phones were 163 million units, accounting for 52.9 percent.
Huaxi Securities noted that the accelerated penetration of 5G smartphones will drive development of the companies in the fields of 5G radio frequency antennas and cameras. (Edited by Hu Pingchao with Xinhua Silk Road, hupingchao@xinhua.org)
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