OTIC(SZ:000962) Sou Hu Cai Jing·2026-02-22 17:47Core Viewpoint - Shizuishan, a city in the Gobi Desert, has become a crucial hub in the global electronics industry, supplying a significant portion of tantalum products essential for various technologies, including 5G smartphones and military equipment [3][5][9]. Industry Overview - Shizuishan produces 60% of the world's tantalum wire and nearly 30% of tantalum powder, making it indispensable in the electronics supply chain [3][32]. - The city is positioned to support a complete industrial chain from raw material extraction to semiconductor applications, enhancing its role in the global electronics market [9][32]. Historical Context - Historically, China had abundant tantalum resources but lacked the technology to refine tantalum powder, leading to reliance on Western companies for processed products [10][12]. - The turning point came in the 1990s when a U.S. company, KEMET, discovered that Shizuishan's tantalum products surpassed their own in quality, marking a shift in the global tantalum market [16][18]. Technological Advancements - The development of a sodium reduction process by engineers in Shizuishan allowed for the production of high-quality tantalum powder, overcoming previous technological barriers [26][28]. - The successful transition from a military-focused operation to a commercial brand, Dongfang Tantalum, demonstrated the capability of Chinese manufacturing to compete internationally [30]. Market Position - Shizuishan's Dongfang Tantalum now holds a leading position in the global market, with a 60% market share in tantalum wire and nearly 30% in tantalum powder, reshaping the competitive landscape previously dominated by Western firms [32][35]. - The city has established a fully integrated supply chain, ensuring that any disruption in production would significantly impact the global electronics industry [33].