It's 2022, and the gap between China's sensors and those of other countries is still so large?

In recent years, although the development of China's sensor industry has been affected by the global environment, including the COVID-19 pandemic and the Sino-US trade friction, it has made some progress compared to previous years, but the situation remains challenging.

Ultimately, sensors are a high-tech field with high investment and slow returns. This article describes the current status of the sensor industry in various countries around the world, as well as the position of China's sensor industry, points out the gaps, the main reasons for the gaps, and the future development path of domestic sensors in China. It points out that: China's sensor industry is in a critical stage of transformation; many companies only import foreign components for processing, resulting in serious homogeneity; there are few products with independent intellectual property rights... and other pain points.

Development of the Sensor Industry in Various Countries

Currently, the global sensor market is mainly dominated by several leading companies in the United States, Japan, and Germany. The United States, Japan, Germany, and China together account for 72% of the global sensor market share, with China accounting for about 11%. Compared to the more than 20,000 product varieties produced worldwide, China can only produce about 1/3 of them domestically, and the overall technical content is also relatively low, which is a situation that urgently needs to be changed.

Sensors have undergone years of development, and their technological development can be roughly divided into three generations:

The first generation is the structural sensor, which uses changes in structural parameters to sense and convert signals.

The second generation is the solid-state sensor developed in the 1970s. This type of sensor is composed of solid-state components such as semiconductors, dielectrics, and magnetic materials, and is made using certain material properties. For example, using the thermoelectric effect, Hall effect, and photoelectric effect, thermocouples, Hall sensors, and photosensitive sensors are respectively made.

The third generation of sensors is the intelligent sensor that is currently under development. It is a product of the combination of microcomputer technology and detection technology, giving the sensor a certain degree of artificial intelligence.

The United States: The Global Sensor King

As early as the 1980s, the United States claimed that the world had entered the sensor era, In the early 1980s, the United States established the National Technology Group (BGT) to help the government organize and lead sensor technology development work by major companies and national enterprises and institutions. Six of the 22 technologies crucial to the long-term security and economic prosperity of the United States are directly related to sensor information processing technology. Among the key technologies crucial to protecting the quality advantage of US weapon systems, eight are passive sensors. In 2000, the US Air Force listed 15 key technologies that would help improve the capabilities of the 21st-century Air Force, with sensor technology ranking second.

The United States' development model follows a path of prioritizing military applications before civilian applications, and prioritizing improvement before popularization. Significant characteristics:

(1) Attaching great importance to the research of functional materials for sensors;

(2) Attaching great importance to the development of sensor technology:   For example, Honeywell's solid-state sensor development center invests $50 million annually in equipment. It currently possesses the most advanced complete sets of equipment and production lines, including computer-aided design, single-crystal growth, processing, pattern generators, step-and-repeat photography, automatic dispensing and lithography, plasma etching, sputtering, diffusion, epitaxy, evaporation, ion implantation, chemical vapor deposition, scanning electron microscopy, packaging, shielding, and dynamic testing. It claims that only by updating most of its equipment approximately every three years can it maintain its technological leadership.

(3) Attaching importance to process research: The principles of sensors are not difficult, nor are they confidential; what is most confidential is the process. Many people believe that "sensors" are not ordinary industrial products, but rather perfect works of craftsmanship. In terms of R&D, the United States has approximately 1,300 manufacturers that produce and develop sensors, and more than 100 research institutes and universities.

Germany: The Hidden Champion of Sensors

Germany regards military sensors as a priority development technology, German sensors fully leverage the inherent advantages of an established industrial power. Combined with the advantages of German manufacturers in brand reputation, technology R&D, and quality management, the market competitiveness of their products is significantly enhanced.

On the one hand, it pays more attention to saving raw material costs; on the other hand, it emphasizes investment in human capital to maintain technological leadership and thus maintain a high market share!

Japan: The Application King of Sensors

Japan lists sensor technology as one of its top ten technologies. Japanese business people claim that "controlling sensor technology means controlling the new era." Japan attaches great importance to the development and utilization of sensor technology and lists it as one of the six key national development technologies.

Among the 70 key topics in the key scientific research projects of the 1990s formulated by the Japanese Science and Technology Agency, 18 are closely related to sensor technology.

Japan focuses on practical application and commercialization, following a path of popularization before improvement, from introduction, digestion, and imitation to independent improvement and innovative design. The former costs more money, while the latter costs less and is faster. In terms of R&D, Japan has approximately 800 manufacturers that produce and develop sensors.

China: In a Critical Stage of Transformation

China began to engage in the sensor manufacturing industry as early as the 1960s.

In 1972, China established its first batch of research and production units for piezoresistive sensors. In 1974, China successfully developed its first practical piezoresistive pressure sensor; in 1978, China's first solid-state piezoresistive accelerometer was born; in 1982, domestic research on silicon microelectromechanical systems (MEMS) processing technology and SOI (silicon-on-insulator) technology began.

After entering the 1990s, absolute pressure sensors, micropressure sensors, respirator pressure sensors, polysilicon pressure sensors, and low-cost TO-8 packaged pressure sensors using silicon micromachining technology were successively introduced and put into production.

In the 30 years since the reform and opening up, China's sensor technology and its industry have made significant progress, mainly manifested in: Research and development bases such as the National Key Laboratory of Sensing Technology, the National Key Laboratory of Micrometer/Nanometer, and the National Engineering Center for Sensing Technology have been established; research projects such as MEMS and MOEMS (Micro-Opto-Electro-Mechanical Systems) have been included in the national key development of high-tech; in the "Ninth Five-Year Plan" national key scientific and technological research projects, sensor technology research has achieved 51 varieties and 86 specifications of new products, and a preliminary sensitive element and sensor industry has been established.

Currently, China's sensor industry is at a critical stage of development from traditional to new types of sensors , reflecting the overall trend of new sensors towards miniaturization, multi-functionality, digitization, intelligence, systematization, and networking.

Current Status of the Domestic Sensor Industry

On the one hand, the domestic sensor industry shows backwardness in sensing information, and on the other hand, it shows backwardness in the intelligence and networking of the sensors themselves. Due to the lack of sufficient scale application, domestic sensors are not only technologically inferior but also expensive, making them difficult to compete in the market.

China began to attach importance to the research of sensor technology roughly after 1980. After years of efforts, the development level in sensor research is relatively good. However, the technological progress in product development is not very ideal , for many sensor technologies, the research level of domestic laboratories is not bad, but it has not been fully utilized and has not been transformed into mature products entering the market.

Sensor technology research requires a relatively long-term investment. The development of a sensor takes 6-8 years to mature, which is generally unaffordable for Chinese companies. Chinese companies find it even harder to bear failures, and the risk of sensor research failure is very high.

In Japanese companies' supported R&D, many do not form products, but the companies can afford it; out of 10 items, only 2-3 need to become products. In comparison, many of our companies are preparing to take what others already have. This approach is problematic, including our constant hope of introducing ready-made foreign talents with their own projects. We are not prepared to raise fish, but to catch one.

Compared to larger instruments and equipment, sensors generally do not require large investments in the product development process, so they are more suitable for investment by small and medium-sized enterprises. In this respect, China should have an advantage. However, from another perspective, this is also a shortcoming.

A characteristic of the sensor industry is that sensors themselves have high technical content, but the price of a single sensor is generally not high. This characteristic leads to the result that, although sensors have high technical added value, it is difficult to form a considerable output value by relying solely on sensors.

Generally speaking, sensors are a bit like "medicinal primers" in traditional Chinese medicine; their function is very important, but to truly form a scale, they still rely on the whole medicine. Once foreign sensor companies make a breakthrough in a certain sensor, related measuring instruments will soon be developed.

In addition, under China's patent protection mechanism, the key technologies painstakingly developed in sensors often have the nature of "know-how"; once copied, it is difficult to explain clearly, and enterprises cannot afford to litigate. Although there are MEMS sensor companies in China, they are all outsourced for processing, and they may be taken over by the processing companies themselves. The current corporate innovation system has major problems.

Gap between China's Sensor Development and Foreign Countries

Domestic sensor manufacturers occupy the low-to-mid-range market. From the development trend, there are three situations for domestic sensor manufacturers:

1. Products of private or joint-venture enterprises occupy the low-to-mid-range market. Traditional technologies and equipment can meet the manufacturing requirements of most products, and the market is developing well. Except for a few manufacturers who have obtained chips produced abroad and packaged them into related products in China to occupy a larger market share in individual varieties, other high-end products are monopolized by foreign manufacturers.

2. With the rise of emerging industries such as the Internet of Things, the sensor industry has become an important area of competition among countries in the development of high-tech. In recent years, China's sensor industry has grown rapidly, and its application models have become increasingly mature. However, due to the low level of the industry and poor technological innovation capabilities, the domestic sensor industry presents a market pattern of low-end surplus and high-end monopoly by foreign countries. The lagging development of sensor technology has hindered the smooth progress of domestic strategic emerging industries.

Currently, China has formed a relatively complete sensor industry chain, from materials, devices, and systems to networks. Significant progress has been made in network interfaces, the integration of sensors and network communications, and the Internet of Things architecture. However, the industry level is low, the scale of enterprises is small, and the technological innovation capability is poor, many enterprises only import foreign components for processing, resulting in serious homogeneity . Backward production equipment and unstable processes lead to dispersed product indicators and poor stability.

Imitation products are also unsatisfactory in terms of sensitivity. In areas with relatively prominent R&D, the basic development of industrialization has been neglected, and commercialization development is seriously lagging.

Currently, China has about 6,000 types of sensor products, while foreign countries have more than 20,000, far from meeting the needs of the domestic market . The import share of mid-to-high-end sensors is 80%, and the import of sensor chips is even 90%, with a huge gap in domestic production.

Among them, there is a serious shortage of high-tech products such as digitization, intelligence, and miniaturization. High-end products required for major national equipment mainly rely on imports . Foreign countries often impose restrictions on China regarding sensors and intelligent instrumentation required for national security and major projects. Foreign companies' products occupy the vast majority of the domestic high-end market share , and will continue to hold the high-end market for a long time to come. This trend will not fundamentally change in the short term.

3. State-owned enterprises are in a state of steady growth, generally failing to keep up with the pace of the latest technological developments abroad. Except for a few manufacturers, the overall gap is widening. This is due to the rapid development of sensor technology, the rapid updating of processes and manufacturing equipment, and the inability of many domestic manufacturers to produce many new devices. Furthermore, the unit price of equipment ranges from hundreds of thousands to millions of US dollars, making it difficult for most manufacturers to purchase new equipment through their own accumulation, resulting in an inability to keep pace with the rapid development of foreign companies in many new technologies and processes.

The main reasons for the gap in China's sensor development

I. Core manufacturing technology lags far behind that of foreign countries, and domestic products are unsatisfactory.

Foreign countries are constantly emerging with new technologies, new products, new processes, and new materials for sensors. The digitalization, intelligence, and miniaturization of sensors have become a trend, and most products have become a reality and are constantly being improved and upgraded. Although China's sensor research and development fields are basically the same as those abroad, due to the serious lag in certain core manufacturing technologies, there is a significant difference in depth and breadth, mainly manifested in:

1. Incomplete product varieties, few specifications, and lack of new products.

Currently, China has about 3,000 types of sensor products, while foreign countries have more than 20,000. The product variety satisfaction rate is only around 60%-70%, far from meeting the needs of the domestic sensor market. From the perspective of industry product structure, old products account for more than 60%, new products are insufficient, high-tech products are even fewer, and digital, intelligent, and miniaturized products are seriously lacking. Overall, there is a lack of product matching, incomplete series, many low-end products, few high-end products, and a lack of market competitiveness.

2. Poor technological innovation and few products with independent intellectual property rights.

Companies have poor independent development and technological innovation capabilities. Due to various factors, domestic companies still use manual methods to produce products with low technical content or products that have been discontinued abroad. Many new companies are simply distributors and agents of foreign products. In most colleges and research institutes, the tracking of high technology and the research and development capabilities of high-value-added products are still good, but the results are mostly samples, far from industrialization, and there are not many independently developed research results with independent intellectual property rights.

II. Backward processes and equipment, poor product quality.

After years of development, although a batch of processes and products have been developed, the stability and reliability of batch production processes have not been fundamentally solved, which has limited their application fields and industrial development. Some high-performance products rely on screening and grading rather than process guarantees. From a technical perspective, due to the relatively backward domestic sensor production processes and equipment, the micro-mechanical processing and packaging technologies are not advanced enough, manual operations are relatively numerous, and the detection methods are not standardized, resulting in the main performance indicators being 1-2 orders of magnitude lower than those of foreign countries, and the service life being 2-3 levels lower. Therefore, in major projects in the fields of chemical industry, power plants, metallurgy, petroleum, environmental protection, and machinery, many high-performance sensors still rely on imports.

III. Lack of talent resources and insufficient industrial development.

One of the characteristics of sensors and their industries is that they are technology-intensive, and naturally require talent-intensive. From the current situation in China, there is a relative lack of high-level scientific research teams, young and middle-aged scientific and technological experts, technical managers, and academic leaders who can meet the development needs of today's sensor technology, resulting in a slow pace of industry technology updates and insufficient momentum for industrial development.

IV. Insufficient overall planning and investment.

The current problems are repetition and dispersion, insufficient overall planning, low research investment intensity, backward research equipment, and disconnection between research and production, which have affected the transformation of research results and resulted in low overall strength of China's sensor products.

Secondly, due to insufficient government attention, in the process of information technology development, the understanding of the importance of sensor technology lags behind computer technology and communication technology, and the scale and intensity of resource investment in development needs are too small, resulting in slow development of sensor technology and hindering the rapid development of information technology.

Where will domestically produced sensors go in the future?

From the perspective of application fields, industry, automotive electronics, communication electronics, and consumer electronics are the largest markets for sensors. The proportion of sensors in the domestic industrial and automotive electronics product fields is about 42%, while the fastest growing markets are automotive electronics and communication electronics applications.

Smart cars and autonomous driving are important driving forces for the development of MEMS sensors. In the era of smart cars, a large number of MEMS motion sensors will be used to realize active safety technology: voice will become an important way of interaction between people and smart cars, and MEMS microphones will usher in new development opportunities. The rise of autonomous driving technology has further promoted the entry of MEMS sensors into automobiles.

In addition, MEMS sensors are also the "heart" of smart factories. In this sense, it is a powerful tool that makes industrial robots "versatile". It keeps the product production process running continuously and keeps workers away from production lines and equipment, ensuring personal safety and health. It is predicted that in the next six years, MEMS in the industrial market is expected to grow rapidly at a compound annual growth rate of 7.3%.