Six Challenges Restricting the Development of the Sensor Industry

2024-09-03

Current State of the Domestic Sensor Industry

China's sensor industry currently stands at a mid-level on the international stage, poised on the brink of significant domestic growth. However, the industry still lacks core technologies with independent intellectual property rights, and its overall profitability is not yet evident. Despite some breakthroughs in the sensor field, international brands continue to dominate the domestic market in critical industries, key technologies, and high-value-added applications. For instance, almost all high-end sensor products and 90% of chips are imported. The technology and products for optical fiber sensors in high-end intelligent equipment lag significantly behind those of other countries. Additionally, domestic companies have a serious lack of capability in producing NTC thermistors for temperature sensors, with 90% of the market controlled by foreign companies. High-temperature, radiation-resistant, and high-pressure temperature sensors are not yet mass-produced domestically.

In 2019, Xu Kaixian, Honorary Chairman of the Sensor Branch of the China Instrument and Control Society and former Director of the Shenyang Instrument Science Research Institute, summarized the current state of China's sensor industry, the challenges it faces, and potential breakthroughs. He identified six major factors affecting the development of the domestic sensor industry:

Lack of Breakthroughs in Common Key Technologies: There have been no significant breakthroughs in key areas such as design, reliability, and packaging technology. Sensor design is complex, involving multiple disciplines, theories, materials, processes, and operational conditions. The high cost of design software, the complexity of the design process, and a shortage of skilled designers—who need to understand both design methods and device fabrication processes—pose significant challenges. Additionally, the reliability of domestic sensors is typically 1-2 orders of magnitude lower than that of similar foreign products. In packaging technology, there is no standardized approach, making it difficult for users to select and interchange products.
Lack of Comprehensive and Coordinated Sensor Products: While some specifications within sensor series are easy to produce domestically, the market suffers from redundant production, which hampers competition. High-end products within these series often cannot be produced domestically and must be imported, such as high-precision, high-stability low differential pressure sensors and high differential, high static pressure sensors widely used in industrial automation instruments.
Neglect of Sensor Manufacturing Equipment: Innovation in sensor manufacturing relies heavily on new process equipment. However, the research and development of such equipment often depend on companies' self-financing, which is limited in terms of both funds and manpower, thereby stifling innovation in sensor manufacturing processes.
Lack of Top-Level Design and Strategic Planning: The sensor industry encompasses a wide range of types and specialties, with the domestic industry chain spread across different departments and sectors. However, there has been no systematic research or scientific planning for the top-level design of sensors. Although the government has invested in the sensor industry, many companies are too focused on short-term gains and neglect foundational research, leading to slow progress.
Dispersed Resources and Small Industry Scale: The industry is fragmented in terms of funding, technology, enterprise distribution, industrial structure, and market reach. While there are over 1,600 sensor companies in China, most are small and micro-enterprises with weak profitability, lacking leading companies with cutting-edge technology.
Shortage of High-End Talent: Talent is the cornerstone of innovation, and the most significant bottleneck in the sensor industry's development is the lack of skilled R&D professionals. The industry's weak economic and technological foundation, combined with the multidisciplinary nature of sensor development, makes it difficult to attract top international talent. Furthermore, due to irrational academic structures and a lack of mechanisms for cultivating multidisciplinary talent, many companies struggle to find personnel who understand both management and technology. This leads to a shortage of professionals who can design, manage, and operate sensor technology effectively.

Pathways to Overcoming Challenges in the Sensor Industry

To address these challenges, Xu Kaixian suggests looking for breakthroughs at both the policy and technical levels.

Policy Level:

Top-Level Design and Strategic Planning: The government should set clear goals and plans for the fundamental research, product development, industrial layout, and market application of sensors.
Increased Investment and National Project Initiatives: Compared to investments in integrated circuits (ICs), national investment in sensors is relatively insufficient. There is a need to increase the intensity and continuity of investment and to initiate more national sensor projects.
Concentrated Efforts and Collaborative Problem-Solving: For key sensor projects and products where foreign dependence is high, the government should organize collaborative efforts to pool national resources and tackle these challenges.

Technical Level:

Integration of IC and MEMS Technologies: The integration and convergence of IC and MEMS technologies are essential for the development of high-end and intelligent sensors. Collaboration between IC enterprises (and academic institutions) and MEMS companies is critical to the success of the sensor industry.
Focus on Research in Non-Silicon-Based Sensors: Research should prioritize sensors based on new materials, mechanisms, and processes, especially non-silicon-based technologies, as the silicon-based sensor industry abroad is highly advanced, making it difficult to surpass.
Chip Development with Application Focus: The domestic sensor industry should increase its focus on sensor chip development, especially for applications in the Internet of Things (IoT) and smart equipment. Although chip development is capital-intensive, costly, and risky, failing to invest in this area could leave China vulnerable to foreign dependence. Therefore, it is crucial to increase investment in sensor chip development.