The silicone oil industry is facing a dual competition of "quantity" and "quality".


On the production capacity side, giants are accelerating their efforts to expand their market share. On June 1st, Hesheng Silicon Industry released an environmental impact assessment announcement for the 100000 ton functional silicone oil project of Xinjiang Western Hesheng Silicon Industry Co., Ltd. It plans to build one 200000 ton silicone oil production line and three deep processing lines, with a product matrix covering 50000 tons/year of dimethyl silicone oil, 30000 tons/year of hydrogen terminated silicone oil, and 20000 tons/year of vinyl silicone oil. This scale is sufficient to change the supply pattern of functional silicone oil in China.


On the technical side, patent attacks are intensively erupting. In early June alone, three companies successively showed their "trump cards":


On June 3rd, the patent for alkyl silicone oil used for cooling in Chengguang New Materials Data Center was authorized;
On June 5th, Shanghai Fluoropolymer Chemical announced the patent for "Fluoroalkyl Modified Amino Silicone Oil" (CN122145805A), which solves the problem of amino oxidation through the synergistic effect of fluorosilicone, endowing fabric finishing agents with multiple properties such as waterproofing, oil resistance, and weather resistance;
On June 6th, Xin'an Corporation applied for a patent for "Guanidine Modified Silicone Oil Catalyst" (CN122145806A), replacing traditional platinum catalysts with non-metallic guanidine catalysts to avoid heavy metal pollution and high costs, targeting high-end fields such as dealcoholized silicone rubber.
On the market side, structural differentiation is intensifying. The current price of ordinary industrial grade silicone oil is under pressure, and dimethyl silicone oil has fallen to around 15800 yuan/ton; However, electronic grade vinyl silicone oil is becoming a new growth pole due to high technological barriers and high dependence on imports. According to data from the New Frontier Industry Research Center, the revenue of China's electronic information manufacturing industry will reach 17.4 trillion yuan in 2025, a year-on-year increase of 7.4%, and the demand for electronic potting and thermal conductive adhesives will continue to rise. Mount Huangshan Meijia New Materials has reached strategic cooperation with Anhui Hecheng Chemical, and plans to import and replace high-end products by 2027; Runhe Materials plans to raise 370 million yuan to expand production of 5000 tons/year of electronic grade vinyl silicone oil.


From Hesheng's 100000 tons to Yunneng Silicon's 5000 tons of low ring ethylene based silicone oil mass production, from Xin'an Group's catalyst innovation to fluoropolymer chemistry's fluorine silicon fusion - the silicone oil track is moving from a "scale is king" to a new era of "technology pricing".