Merck(US:MRK) Mei Ri Jing Ji Xin Wen·2025-07-10 07:35Core Viewpoint - The recent "618" shopping festival in China saw significant year-on-year growth in sales of consumer electronics, driven by government subsidies and increasing demand for high-tech products like smartphones and laptops [1] Group 1: Market Dynamics - China has become a major global market for electronic products, with a strong focus on innovation and production in sectors like semiconductors and displays [1][7] - The Chinese market is characterized by resilience and vitality, supported by government policies that stimulate domestic demand and promote high-tech industries [7][8] Group 2: Company Strategy - Merck Group's electronic technology division aims to be the "most localized multinational enterprise," emphasizing a strong commitment to the Chinese market and local decision-making [5][9] - The company has invested 1 billion RMB in China, focusing on building a localized support network across various product lines in the semiconductor and display sectors [8][9] Group 3: Industry Trends - The display industry is evolving with increasing demand for flexible, foldable, and stretchable screens, while liquid crystal displays (LCD) are expected to remain mainstream in the near future [10][11] - OLED technology presents opportunities for growth, particularly in flexible displays, but faces challenges in cost reduction and large-size applications [12][13] Group 4: Competitive Landscape - The semiconductor market is large and diverse, allowing companies to focus on high-value, technically challenging areas rather than engaging in price wars [14][15] - Merck aims to balance competition and collaboration with local firms, fostering innovation and addressing common industry challenges through strategic partnerships [16][17]