The advanced materials industry focuses on application areas such as integrated circuits, biopharmaceuticals, high-end equipment, aerospace, and new energy. By 2023, its industry scale is projected to reach 300 billion yuan ($42 billion), and the industry will comprise three to five 5-billion-yuan level leading enterprises, 20 1-billion-yuan worth enterprises, and 50 innovative high-growth enterprises.

Industry Advantages

1. Upper-level Government Consolidating Industry Development Momentum

In November 2022, the new materials industry was proposed as one of the future industry clusters in the Action Plan of Shanghai Municipality for Developing an Innovation Highland of Future Industries and Developing Stronger Future Industry Clusters issued by Shanghai Municipal People's Government.

Improving the capacity for industry transformation in Pudong, Baoshan, Jinshan and other districts to build future material industry clusters.

Targeting functional breakthroughs in material applications and aiming to form a cutting-edge industry layout and cultivate enterprise needs, so as to facilitate R&D advances and commercialization of high-end membranes, high-performance composites and other technologies.

2. Shanghai Chemical Industry Park: Leading Industry Upgrading Through Innovation

China's No 1 chemical industry park in terms of comprehensive development.

Shanghai International Chemical Industry New Materials SciTech Innovation Union jointly initiated by the Park and 10 institutions and enterprises.

In 2022, Shanghai Chemical Industry Park witnessed a total industrial output of about 134.8 billion yuan.

In 2022, total investment in projects implemented in the park reached 13.08 billion yuan, a year-on-year increase of 94 percent, the highest in nearly ten years.

3. Digitalization-driven Industry Development

Shanghai New Materials Industry Digital Union (Material Sharing and Production) was inaugurated on September 28, 2022. The conference aimed to actively lead and promote the application of digital technology in the new materials industry and the digital transformation of enterprises in Shanghai by establishing a digital union and the Shanghai New Materials Industry Digital Technology Online Service Public Platform.

Source: Shanghai Investment Guide 2023