Boarden’s Dr. Li Remarkable Speech at the 2024 Annual Conference of the China Electronic Components Industry Association
As market saturation intensifies in the electronics industry, finding a breakthrough has become a pressing concern for companies. On December 11, 2024, Dr. Jim Li, founder of Shanghai Boarden, delivered a speech at the Annual Conference of the China Electronic Components Industry Association.
Drawing on Boarden’s growth journey, he provided an in-depth analysis of the root causes of market saturation and proposed proactive strategies to address it.
Dr. Li focused on how Boarden achieved business growth by diversifying into niche markets, promoting domestic alternatives, and exploring new technologies and markets. These insights not only highlight Boarden’s forward-thinking strategies but also provide valuable guidance for industry peers facing similar challenges. Below is a summary of Dr. Li’s speech for reference:
Speech by Boarden Industrial
Dr. Li:
Leaders, entrepreneurs, and colleagues, good day. I am Dr. Jim Li from Shanghai Boarden. I’ve noticed that much of the discussion today revolves around market saturation, as well as the unfair and unscrupulous practices of larger corporations. I’d like to share Boarden’s perspective on this issue.
Market saturation
“Breaking Through Market Saturation: How Boarden Navigates the Circuit Protection Industry with Niche Strategies and Domestic Substitution”
Introduction | Market Saturation: A Shared Reality, Not a Crisis
Market saturation—driven by overcapacity and slowing demand—is a recurring stage in economic development, not a cause for resentment. In fact, we have been beneficiaries of this phenomenon. Historically, market saturation in Europe and the U.S. fueled the rise of industrial Japan, Korea, Taiwan, and eventually China. Without it, “Made in China” would never have gone global.
Now, it’s our turn to face this economic reality. Instead of complaining, we should ask: How can China’s circuit protection enterprises survive and thrive in a saturated global market?
The Problem | Shrinking Margins and Brand Deficits
Despite producing vast volumes of thermal fuses and other components, Chinese firms still lag behind Western counterparts in terms of pricing and profitability. Even Saiter, a top domestic brand, struggles with thin margins. Without profitability, there’s no budget for R&D, no space to build brands, and no momentum for expansion.
So why can Littelfuse sell its varistor for $0.30, while Boarden’s equivalent struggles to command ¥0.50?
The Strategy | Niche Specialization and Domestic Substitution
Boarden chose a different path. Instead of following the overcrowded semiconductor route, we doubled down on high-energy multilayer varistors—a segment with higher technical barriers and limited domestic supply.
In 2017, we built a dedicated production line. By 2024, monthly capacity grew from 4M to 40M pieces. Even in downturns, shipments doubled year-over-year. Why? Because we focused on deep vertical specialization, starting with the LED industry and expanding to communication, smart home, automotive, and new energy sectors.
The Ecosystem | How Associations Can Help SMEs Evolve
Many small enterprises have strong products but lack strategic vision. Here’s where trade associations must step in—not to enforce minimum prices (which are unrealistic), but to provide:
- Policy interpretation
- Industrial forecasting
- Technical roadmap guidance
- Cross-sector collaboration platforms
The Call | Let’s Replace Price Wars with Ecosystem Thinking
Instead of slashing prices to win orders, we should explore:
- Advanced EMC labs + testing services
- Strategic product bundling (e.g. integrating Boarden components into turnkey EMC solutions)
- Collaborative verticals among companies focused on high-current, high-voltage, or cost-effective fuses
The goal is mutual reinforcement, not mutual destruction.
Dr. Li’s speech provided constructive ideas for addressing the challenges of industry competition, while showcasing Boarden’s innovative spirit and sense of social responsibility in the face of challenges. Moving forward, Boarden will continue to focus on specialized areas, explore new technologies and markets, and contribute to building a healthy and sustainable ecosystem for circuit protection.
We hope this sharing inspires peer companies and fosters high-quality development across the industry.
