I. Market demand continues to grow and application areas keep expanding

Surging demand in new-energy vehicle electronics

As global new-energy vehicle output surpasses the ten-million-unit mark, the average lead-free solder paste consumption per vehicle is about 3.2 times that of a traditional internal combustion engine vehicle. Core components such as the battery management system (BMS) and the on-board charger (OBC) impose extremely high reliability requirements on solder joints, driving continuous upgrading of lead-free solder pastes in high-temperature resistance and vibration resistance. For example, companies such as BYD now require suppliers to provide solder paste products certified for full temperature range reliability from -55°C to 150°C. Fitech is closely following this trend, actively investing R&D resources and working to improve the performance of its lead-free solder paste products under such extreme conditions, so as to meet the increasingly stringent requirements of new-energy vehicle electronics.

Explosive demand for 5G communication equipment

5G base station construction has entered a phase of dense deployment, and solder paste consumption per station is about 1.8 times that of a 4G base station. High-frequency, high-speed substrates such as Rogers RO4350B impose stringent requirements on solder paste, including a low void rate (<5%) and low ionic residue (SIR ≥ 1×10¹² Ω), prompting companies to develop dedicated formulations. Companies such as Huawei have included lead-free solder paste in the mandatory certification list for their 5G product supply chains. Fitech has keenly identified the enormous potential of the 5G communication equipment market and, drawing on its own technical strength, has developed lead-free solder paste products that meet the stringent requirements of 5G communication equipment, actively participating in the supply system of the 5G industry chain.

Deepening penetration in industrial control and medical electronics

Scenarios such as industrial robots and medical imaging equipment require solder joint lifetimes of more than 15 years, driving lead-free solder pastes toward high creep resistance and low metal migration. Siemens Healthineers, for example, requires soldering materials to pass IEC 60601-1 medical safety certification, prompting suppliers to optimize flux formulations in order to reduce the risk of electrochemical corrosion. Fitech is also actively positioning itself in industrial control and medical electronics, continuously optimizing product formulations and improving product performance to meet the specific requirements for lead-free solder paste in these fields, and is steadily expanding its market share there.

II. Accelerating technology iteration and breakthroughs in product performance

Low-temperature soldering becomes mainstream

For heat-sensitive components such as Mini LED and flexible circuit boards, demand for low-temperature lead-free solder paste (melting point 138–183°C) is growing rapidly. Low-temperature alloys such as the FL170 series (Sn-Bi-Ag-X) developed by Fitech and other companies use micro/nano grain strengthening technology to achieve reliable soldering at 170°C, more than 50°C lower than the traditional SAC305 soldering temperature, effectively reducing thermal damage to components. Fitech likewise attaches great importance to R&D in low-temperature soldering technology and has invested a dedicated team in technical development; its low-temperature lead-free solder paste products are gradually approaching, and in some respects even reaching, the industry-leading level in performance, providing better solutions for soldering heat-sensitive components.

Breakthroughs in ultra-fine powder technology

As component lead pitches shrink below 0.3 mm, the application share of Type 6 (5–15 μm) ultra-fine solder powder continues to rise. The micron-level spherical liquid-phase forming technology developed by Fitech has achieved mass production of Type 6 (5–15 μm) to T8 (2–8 μm) powders, meeting the soldering requirements of 01005 components. It has also taken the lead in mass-producing T9 (1–5 μm) and T10 (1–3 μm) solder powders, which have been successfully applied in specific semiconductor fields. Fitech continues to increase R&D investment in ultra-fine powder technology and to improve its production processes and powder sphericity, achieving 100% spherical powder, successfully reducing the oxygen content of solder powder and improving printing yield, while moving toward even finer powder preparation technology to meet market demand for ultra-fine-powder lead-free solder paste.

Widespread adoption of no-clean processes

Driven by environmental regulations, ultra-low-residue fluxes have become a research focus. The residues of the developed fluxes are inert, with ionic contamination ≤0.5 μg/cm², meeting the IPC-J-STD-004B Class 10 standard, which helps customers eliminate the cleaning step and reduce overall costs by more than 15%. Fitech actively responds to environmental requirements and focuses on R&D of ultra-low-residue fluxes. By continuously optimizing formulations and processes, its flux products have also reached high environmental standards, providing customers with more environmentally friendly and more economical lead-free solder paste solutions.

III. Accelerating import substitution and the rise of domestic companies

Policy-driven technological self-reliance

China's 14th Five-Year Plan explicitly requires that the domestic content rate of high-end electronic assembly materials reach no less than 75% by 2026. The current overall domestic content rate of lead-free solder paste is about 63.5%, but in the field of high-end SAC305 optimized systems it is less than 10%. Supported by policy, companies such as Weiteou and Tongfang Electronics have increased R&D investment, with an average R&D expense ratio of 6.4% in 2025, 3.9 percentage points higher than the average of the A-share chemical materials sector. As a local high-tech "little giant" enterprise, Fitech actively responds to the call of national policy, takes technological innovation as the core driver of corporate development, increases R&D investment in the high-end lead-free solder paste field, and strives to raise the domestic content rate and contribute to the development of the country's electronics industry.

Technological breakthroughs by domestic companies

Formulation innovation

Shenzhen Tongfang Electronics uses micro-alloying (Ni/Co doping) technology to inhibit excessive growth of intermetallic compounds (IMC), improving the drop-impact resistance of solder joints by 30%. Fitech has also achieved remarkable results in formulation innovation: through continuous exploration and experimentation, its R&D team has developed the unique FL170 low-temperature alloy and the FR209 high-reliability formulation system, effectively improving the overall performance of lead-free solder paste, including the reliability and corrosion resistance of solder joints.

Process optimization

Fitech focuses on optimizing and improving its production processes and has established a strict quality control system, exercising tight control over every stage from raw material procurement to product manufacturing. This ensures the stability and consistency of product quality, effectively reduces batch-to-batch performance variation, and improves production efficiency and product pass rates.

Equipment upgrading

Kunshan Changxing Solder has introduced imported melting furnaces and domestic soldering inspection equipment, keeping production costs below 70% of those of international brands while ensuring that performance meets standards. Fitech likewise attaches importance to upgrading its production equipment, actively introducing advanced production equipment and inspection instruments, improving production automation and product inspection accuracy, and reducing production costs while ensuring product quality, thereby enhancing the market competitiveness of its products.

Reshaping of the market landscape

In 2025 the domestic CR5 (combined market share of the top five companies) reached 58.3%, up 4.2 percentage points from 2024. Among them, Weiteou ranked first with a 19.7% share, and the valuation center of its automotive-grade AEC-Q200 certified products rose to PS 4.8×, 1.9 times higher than that of general-purpose manufacturers, reflecting the capital market's premium recognition of deep technical capability. With its technical strength and market development capability, Fitech is gradually emerging in market competition, with its market share continuously rising; it holds a major share of the domestic market, especially in micro-optoelectronic display and ultra-fine solder application fields, and has become one of the important forces driving the reshaping of the domestic lead-free solder paste market landscape.

IV. Green manufacturing and digital transformation become new directions

Continuously escalating environmental requirements

The EU RoHS 3.0 directive has added four substances, including phthalates, to its restricted list, prompting companies to develop halogen-free solder pastes and even zero-halogen solder pastes. Fitech actively responds to international environmental standards and has intensified R&D on environmentally friendly products such as halogen-free solder paste; its halogen-free lead-free solder paste products have passed the relevant certifications, laying the foundation for expanding into international markets.

Smart manufacturing empowering production

Companies are introducing digital twins and AI algorithms to achieve dynamic formulation optimization. For example, the company has used virtual simulation technology to shorten the development cycle of new formulations from 6 months to 2 months and to reduce R&D costs by 40%. At the same time, the application of industrial internet platforms has made the supply chain more transparent, shortened delivery cycles to 3–5 working days and improved responsiveness by 50%. The company keeps pace with the smart manufacturing trend, actively introducing advanced digital technologies and building a digital production management system that enables intelligent one-click start-up and full-scenario monitoring and management of the production process, thereby improving production efficiency and product quality consistency, optimizing supply chain management and enhancing the company's market responsiveness.

Rise of full life-cycle management

Companies have begun to build green assessment models to quantify product carbon footprints. Fitech attaches importance to full life-cycle management of its products, taking environmental protection and resource conservation into account at every stage from raw material procurement and manufacturing to product use and waste disposal. By building a green assessment model, it continuously optimizes product design and production processes, reduces product carbon footprints, and provides customers with greener and more sustainable lead-free solder paste products.