How can the 5G era be without the cooperation of 5G chips? The next five years will usher in an explosive period

China's 5G technology is gradually improving and becoming more popular. Related investments triggered by 5G technology are in full swing, and the scale of the industry is growing exponentially.

The 14th Five-Year Plan is being actively formulated, and new infrastructure, which is responsible for stabilizing economic growth, may become an important direction of the 14th Five-Year Plan.

At the beginning of the 14th Five-Year Plan, we look forward to the new infrastructure. Seven major areas such as 5G super applications and the Internet of Things may be the core development direction of the new infrastructure, and 5G chips will drive the digital upgrade in an all-round way. The major areas of new infrastructure can be divided into two major sectors: "focusing on innovation" and "making up for shortcomings". Under the cultivation of new technologies, more new momentum will continue to emerge.

Focus on innovation to make up for shortcomings

Multiple applications are expected to become new pillars

Under the current more challenging macro-environment, the 14th Five-Year Plan will become a new starting point.

On November 25, 2019, Premier Li Keqiang presided over a special meeting to study and deploy the formulation of the 14th Five-Year Plan for National Economic and Social Development, pointing out that during the 14th Five-Year Plan period, my country is in a critical stage of transforming development methods, optimizing economic structure, and transforming growth momentum. A number of major projects will be launched to focus on improving the level of infrastructure.

Since the beginning of 2020, new infrastructure has been mentioned in the 2020 government work reports of many provinces and cities, including Beijing, Guangdong, Chongqing, and Hunan. 

Song Jia, director of the Innovation Center of the State-owned Assets Supervision and Administration Commission of the State Council's Mechanical Industry Management Institute, said in an interview with the Securities Daily reporter: "'New infrastructure' is mainly aimed at laying the foundation for the digital economy in the future. The major areas of new infrastructure are mainly divided into two sections: one is 'focusing on innovation'; the other is 'making up for shortcomings'."

Song Jia believes that 5G, industrial Internet, artificial intelligence, and big data centers belong to the category of "heavy innovation", specifically covering the digital economy represented by 5G big data centers and artificial intelligence, industrialization and intelligent electronics represented by industrial Internet, and new energy and new materials represented by new energy vehicles and charging piles. They mainly serve the innovative and integrated development of the digital economy, as well as the digitalization and intelligent upgrading of traditional industries.

The "new infrastructure" represented by 5G and industrial Internet not only supports the development of many industries, but also integrates and promotes the emergence of multiple new scenarios and emerging industries, incubating more innovations and applications, and is expected to be cultivated into a new pillar for China's future sustained economic growth.

In Song Jia's view, charging piles, ultra-high voltage and intercity rail transit focus on "filling in the gaps", mainly serving the urbanization process, the integration of urban agglomerations and the application environment and ecology of new energy vehicles.

Song Jia said: "The urbanization process has gradually entered the second stage: the integrated development of urban agglomerations. The Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, Chengdu-Chongqing and other regions are all further integrating urban agglomerations. The 'new infrastructure' is a new type of infrastructure built to meet the overall needs of an intelligent society, integrated travel modes for urban agglomerations, digital economic industries, and the popularization of new energy vehicles."

A report released by Industrial Securities shows that 13 provinces, cities and districts have released investment plans for key projects in 2020, of which 8 provinces have announced total planned investment amounts, totaling 33.83 trillion yuan.

Wang Peng, assistant professor at Renmin University of China, said in an interview with the Securities Daily reporter: "At present, my country has seized the opportunity of 'new infrastructure' construction, which will not only benefit the present, but also benefit future generations, laying the foundation for China's three major transformations. In the future, China's drive will mainly rely on three major driving forces: dual circulation at home and abroad, deepening and exceeding expectations of reforms, and intelligent digital transformation."

New technologies foster new momentum

Start the engine of high-quality development

In the view of Zhou Xibing, a researcher at the China Local Enterprise Soft Power Research Center, seven major aspects, namely 5G super applications, Internet of Things, artificial intelligence, human-machine technology, industrial Internet, unmanned logistics and unmanned vehicles, and new basic materials, will be included in the sequence of cultivating new momentum.

"5G industry, charging piles, big data centers, and the Internet of Things are the key industrial chains we need to pay attention to. The next two years will be the first peak of China's 5G construction. Artificial intelligence shows huge business prospects and the industry scale can reach hundreds of billions of dollars. The total gap in the construction of charging piles in China is large and will usher in a period of rapid growth in the next five years. The number of global Internet of Things connections will also achieve leapfrog growth in the next five years."

Chen Fengwei, deputy general manager of China Unicom's Terminal and Channel Support Center, said in an interview with Securities Daily: "Not only in the field of communications, 5G can enable interconnection in multiple scenarios. Its high network speed, small limitations, and ultra-low latency will promote industries such as telemedicine, unmanned driving, and drones to enter a mature stage. Driven by 5G, different 'killer' applications will appear in different scenarios, and the first may appear in the field of ultra-high-definition video."

The combination of new technologies and application scenarios in other areas of new infrastructure is also crucial. Charging piles are expected to develop rapidly to fill the gap, and artificial intelligence and big data will promote the rapid upgrading and development of payment, e-government, health industry and other fields.

Song Jia said that the machinery industry and manufacturing industry will benefit first from the new infrastructure. Digitalization, networking, and intelligence are the key features of the new round of scientific and technological revolution and industrial transformation, and are also the trend of innovation and development in the manufacturing industry, which will bring about all-round and profound changes in the manufacturing industry. "The new infrastructure will promote the overall trend of the machinery industry to present the 'new five trends', namely, comprehensive intelligence, green manufacturing, personalized demand, industrial clustering, and manufacturing service. Charging piles, ultra-high voltage, and intercity rail transit mainly serve the urbanization process, the integration of urban agglomerations, and the foundation of the application environment and ecology of new energy vehicles."

The new generation of technology will also benefit from its deep integration with mechanical equipment and the mechanical equipment manufacturing industry, opening up new products, new models and new markets.

Talking about the relevant plans for the construction of "new infrastructure", Zhou Xibing suggested: "First, reasonably formulate the country's medium-term and long-term strategic plans for the next 20 to 50 years, and gradually implement relevant industries. Second, formulate scientific laws and regulations to regulate the ethics and responsibilities of forward-looking technologies. Third, revise relevant industrial policies on the basis of Made in China 2025. Fourth, reasonably guide and formulate industrial policies for new technologies and new infrastructure, and at the same time support private enterprises with capabilities and R&D results as the core, formulate relevant policies, and prevent the outflow of new technology and new material R&D technologies."

Lin Boqiang, an energy economist and member of the National Energy Expert Advisory Committee, said in an interview with the Securities Daily reporter: "Energy storage is also a core issue that we need to pay attention to at the moment. The construction of new energy-related infrastructure will drive the development of multiple future systems, and photovoltaic and electric vehicles will be popularized very quickly. The '14th Five-Year Plan' is a critical transition period. At present, specific policy measures related to energy storage need to be further implemented. It is hoped that relevant specific policies can be further reflected in the '14th Five-Year Plan' and subsequent national and relevant departmental plans."

"The 14th Five-Year Plan is a future-oriented plan, a plan for the transition period with new technologies and new momentum. Compared with traditional planning, its external and internal environments have changed. New technologies need to be integrated with social life to avoid focusing on construction and neglecting operations. Local governments should avoid rushing into things and develop in urban clusters rather than going it alone. The 14th Five-Year Plan will not only produce a 'five-year' effect, but will also lay a digital and intelligent foundation for the great rejuvenation of the Chinese nation." Wang Peng said.

5G, artificial intelligence, big data, cloud computing, and smart manufacturing are hot words in recent years, marking the beginning of a comprehensive reform of the economy and industry. These new formats, new models, and new industries require the support of new infrastructure, and also become new driving forces cultivated under new technologies. The next five years will be an important period to start the engine of high-quality development and create a new economic growth pole. Both new technologies and new infrastructure will support the next glorious chapter of the historical journey.