In September 2025, the structural adjustment of the organic silicon industry has shown results, with the profit proportion of deep processed products exceeding 70%, an increase of 25 percentage points compared to 2020. This transformation marks the shift of the industry from "quantity increase" to "quality improvement", and the high-end strategy has become the focus of enterprise competition.


The profit advantage of deep processing products is highlighted
According to statistics, in the first half of 2025, the average gross profit margin of deep processed organic silicon products will reach 35%, while the gross profit margin of individual products will be less than 10%. Taking a certain enterprise as an example, the unit price of its silicone rubber products is 28000 yuan/ton, with a gross profit margin of 42%; During the same period, the unit price of DMC was only 12000 yuan/ton, and the gross profit margin was only 8%. Profit differences prompt companies to accelerate their downstream layout. By 2025, high-temperature rubber will account for 60% of the newly added silicone rubber production capacity in China, mainly used for sealing new energy vehicle battery modules; The production capacity of silicone resin focuses on photovoltaic packaging film, with an annual output exceeding 500000 tons.


Building a competitive moat through technological barriers
The technological threshold for high-end deep processing has significantly increased. For example, the injection molding technology of liquid silicone rubber (LSR) requires controlling the vulcanization time within 5 seconds, and the product shrinkage rate is less than 0.1%. Only a few companies worldwide have mastered the core process. In 2025, a certain enterprise successfully broke the foreign monopoly by improving LSR production efficiency by 30% and reducing costs by 15% through its independently developed "twin-screw dynamic vulcanization device". In addition, silicone oil modification technology has also become a competitive focus. The amino silicone oil developed by a certain enterprise has a 50% increase in softness compared to traditional products and has been applied to high-end suit finishing agents.


Downstream demand drives product iteration
The upgrading of downstream industries has forced innovation in organic silicon products. In the field of new energy vehicles, the temperature resistance requirements for silicone seals in battery packs have been raised from -40 ℃~150 ℃ to -50 ℃~180 ℃, promoting the research and development of special silicone rubber by enterprises; In the field of 5G communication, the demand for base station heat dissipation has surged, leading to an increase in the thermal conductivity of silicon-based coolant from 0.8W/(m · K) to 3W/(m · K). In 2025, a certain enterprise launched nano fluid silicone oil, which doubled the thermal conductivity efficiency through silica particle dispersion technology and has been applied to equipment of companies such as Huawei and ZTE.


Policy guidance for orderly development of industries
To avoid overcapacity in low-end production, government departments have strengthened planning and guidance. In 2025, the National Development and Reform Commission will include "high-performance silicone rubber" and "electronic grade silicone oil" in the encouraged categories of the "Guiding Catalogue for Industrial Structure Adjustment", while restricting the construction of projects with a single production capacity of less than 200000 tons per year. At the local level, a certain province has introduced a policy to provide a 30% tax reduction for research and development investment in deep processing products. It is expected that by 2027, the proportion of deep processing product output value in the province will reach 65%.