It is understood that Huawei has started 5G related research since 2009 and has invested at least US$600 million so far. It plans to further increase investment this year. The CE mark is a safety certification mark and is considered as a passport that manufacturers open and enter the European market. The acquisition of this certification shows that Huawei's 5G products have officially obtained commercial licenses in the European market, and took a big step toward 5G commercialization.
China's 5G technology has matured rapidly and has advanced commercial strength. The United States took advantage of CDMA technology patents to grasp the core value of the communications industry in the 3G era, but its dominant position in the 4G era was replaced by China and Europe. 5G technology significantly increases the mobile transmission rate, New breakthroughs in new applications such as the Internet of Things (IoT) and Internet of Vehicles (IoV) have been implemented. According to IHS Markit's forecast, by 2035, global output generated by 5G will reach 12.3 trillion yuan.
China hopes to achieve technological catch-up in the 5G era and requires leading enterprises to achieve breakthroughs in high-end core equipment under the guidance of policy guidance. At present, China still relies on imports in the front-end RF devices, high-frequency devices and other fields. The Ministry of Industry and Information Technology will promote 5G high-frequency through policy support. The R&D progress in devices and other fields will speed up 5G trial commercial testing and lay the foundation for 5G commercial scale in 2019-2020. Meanwhile, the internal conference research of the Ministry of Industry and Information Technology promotes the research and development of 5G core hardware technology. This year, the Ministry of Industry and Information Technology will focus on 5G high-frequency devices and other key areas. Promote the breakthrough of the 5G key device industry layout, and strive to form its own technology line. It is expected that 5G commercial phones will be launched in 2019.
Driven by policies, China's 5G commercialization will accelerate and enterprises in the industrial chain will continue to benefit. Among the listed companies in the A-share market, FiberHome (600498.SH), Shengyi Technology (600183.SH), Zhongji Xuchuang ( 300308.SZ) is worth paying attention.