At the 8th China International Import Expo, Yin Zhiming, President of Panasonic Electric Works (China) Co., Ltd., highlighted China as one of Panasonic's most critical markets, a key raw material supply chain hub, and a major innovation base. The company generates approximately RMB 20 billion in annual sales in China, maintaining upstream and downstream relationships with nearly all domestic electronics manufacturers.
Panasonic's strategy in China follows a dual approach: deepening its local market presence ("In China, for China") and supporting global clients to expand internationally ("In China, for the world"). The company focuses on B2B operations, specializing in production equipment and materials, with innovations often applied in "invisible" technological areas.
Yin noted robust growth for Panasonic, with double-digit sales increases in FY2024. Q1 FY2025 saw a 13% year-on-year sales rise and a 26.3% profit surge, while Q2 posted 12% sales growth and 5.8% profit growth. The company aims to exceed 10% in both revenue and profit margins for FY2025.
Reflecting on market competition, Yin observed a shift from competing with Japanese and Western firms a decade ago to facing local Chinese manufacturers today. To capitalize on emerging opportunities like generative AI servers, Panasonic is investing heavily in electronic materials.
A new RMB 600 million smart green factory in Suzhou, launched in October 2024, will produce semiconductor substrate materials. Another RMB 120 million facility in Shanghai, started in September 2025, aims to double output and strengthen the regional semiconductor supply chain.
In AI, Panasonic supplies materials for PCB boards used in AI servers, while its Japanese factories produce capacitors, inductors, resistors, and relays for AI applications. The company divides its AI focus into "computing power" and "power supply," offering end-to-end solutions from server components to data center power systems.
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