During the peak of the COVID-19 pandemic, global production and supply chain systems were severely impacted, forcing industries to swiftly adjust strategies to cope with uncertainty. We fully utilized global network resources to accurately identify potential opportunities for increasing component production capacity and actively sought feasible alternative components to alleviate supply pressures. With a global digital supply chain system, long-term supplier relationships, and extensive product design expertise, Molex successfully shortened the lead time for alternative components and effectively addressed delivery delays.

Global pandemic recovery will be a long-term process, with industries facing numerous challenges. In this context, operational agility has become a new standard for corporate survival and development. Meanwhile, technological advancements in communications, big data storage, and analytics continue to drive industrial transformation. Among these, 5G technology may be the most transformative force, enabling breakthroughs in nearly limitless application scenarios. It is clear that 5G is becoming a critical inflection point for industry development, benefiting various sectors worldwide.

Driven by 5G technology, various components are interconnected to form innovative system architectures where functions complement each other, collectively achieving superior design and performance. The growth opportunities brought by 5G extensively cover consumer electronics, automotive, industrial, and medical fields, stimulating numerous emerging demands. Global 5G deployment will proceed in phases, largely building upon existing 4G infrastructure in most regions.

In 2020, China emerged as a global leader in 5G technology. The country connected 180 million devices to 5G networks and constructed over 700,000 5G base stations, significantly exceeding the original target of 500,000. These advancements positioned China at the forefront of next-generation ultra-high-speed wireless technology. The Chinese government has identified 5G networks and data centers as key focuses in its "new infrastructure" investment plan. The industry widely recognizes next-generation mobile networks as core to building national digital infrastructure, aimed at providing stronger connectivity for consumers and enterprises.

Addressing Technical Challenges in the Chinese Market

In 2021, 5G, IoT, smart vehicles, industrial automation, and smart healthcare are undoubtedly industry focal points. In these applications, customer demands for connectors are increasingly diverse, and market needs continue to evolve even for connectors designed for specific fields. For example, in high-power application scenarios, engineers often need to balance current levels, functional integration, and connector size.

Some high-power connectors struggle to meet all required functions, meaning engineers frequently must compromise between performance and size. If existing connectors cannot provide the required current in a compact form factor, designers may have to opt for larger conventional high-current connectors, thereby increasing overall design dimensions. The emergence of new technology applications further highlights such challenges.

Take unmanned aerial vehicles (UAVs) as an example: while they may be entertainment devices for general users, in industrial settings they can evolve into autonomous mobile robots (AMRs) with broad applications, such as facility monitoring and traffic assessment. Such equipment undoubtedly requires a new generation of connectivity solutions, and for many companies seeking to enter new markets, AMRs may represent a technological "pain point."

In-vehicle networks (IVN) represent another typical case, where insufficient standardization can lead to interoperability and compatibility issues. The rapid development of the automotive industry is just one example of sectors requiring Molex's specialized connectivity expertise. Additionally, rapidly evolving controlled LED lighting systems, advancing medical technologies (such as COVID-19 vaccine development), and other fields urgently demand high-performance connectivity solutions.

Digital Transformation Drives Industry Collaboration

Today, change has become the new normal, and adaptability is a critical corporate capability. This is particularly true in industrial automation—precisely where the Internet of Things (IoT) and the Industrial Internet of Things (IIoT) converge.

As part of its overall digital strategy, Molex continues to integrate its commercial processes to efficiently deliver advanced products and services while ensuring an optimal customer experience. Our goal is to achieve comprehensive digitization of product development, supply chain management, manufacturing, and operational execution, embodying the "One Molex" philosophy. By establishing a consistent global operational model, we not only achieve significant internal efficiency gains but also create greater value for customers.

In the short term, this digital transformation initiative will help us redefine product design and innovation services while optimizing manufacturing processes and order fulfillment capabilities with unprecedented speed and scale. This enables us to better respond to market changes and jointly embrace the challenges and opportunities of an intelligently connected future with our customers.