As we enter the latter half of August, the silicone industry is showing a multi-dimensional development trend across project construction, market supply and demand, and technological innovation, with a series of new developments reshaping the industry landscape.

　　In terms of project construction, the provincial key project, the Zhangping Shengyuan Silicone Rubber and Silicone Oil Production Project, is progressing steadily. With a total investment exceeding 200 million yuan, the project has seen accelerated construction progress since its commencement in December last year. Currently, the main construction of Building 3 is underway at a rapid pace, with the roof expected to be completed by the end of August, and the entire project slated for completion in September. Upon completion, the planned four silicone rubber production lines and three silicone oil production lines will have an annual production capacity of 6,000 tons of silicone rubber and 5,000 tons of silicone oil. This will not only support the company's own scale expansion but also inject new momentum into the optimization of the regional industrial layout. Meanwhile, the construction of the Weiltong (Vietnam) Industrial Park has reached a critical milestone. The park was groundbreaking on December 30, 2024, located in the Guiwu II Industrial Zone of Bac Ninh Province, Vietnam, covering an area of 13,678 square meters with a building area of 20,000 square meters. with an initial investment of 81 million RMB, focusing on the adhesive industry, with products including silicone, among others. It is expected to be completed by August 20, with an annual production capacity of 6,000 tons, and upon completion, it will meet the demand for silicone products in industries such as electronics and new energy.

　　From the perspective of market supply and demand, the application of silicone materials continues to expand across various fields, with market demand showing diversified growth. In the medical and health sectors, demand for medical silicone products such as catheters and implants, as well as health care products like pacifiers and dental appliances, is rapidly increasing, driving industry development. According to relevant data forecasts, the liquid silicone infant and toddler products market is expected to maintain an annual compound growth rate of over 25% over the next five years. At the 24th CBME Shanghai Infant and Toddler Products Expo held in July 2025, liquid silicone infant and toddler products have become a focal point, with over 65% of buyers prioritizing liquid silicone materials as their preferred procurement option. Leveraging advantages such as food-grade safety standards and biodegradable technology, these products are leading the upgrade of infant and toddler products. In the electronics and electrical sectors, the development of emerging technologies such as 5G, the Internet of Things, and new energy has driven a surge in demand for high-performance silicone materials. For example, battery management systems for new energy vehicles and heat dissipation modules for 5G base stations all impose higher requirements on silicone's conductivity, thermal conductivity, and flame-retardant properties. In the consumer goods sector, consumers' preference for high-quality, environmentally friendly silicone products has driven the continuous expansion of the relevant product market. However, the market also faces challenges. For instance, due to factors such as global and Chinese photovoltaic industry supply-demand imbalances, price declines, and export obstacles, Keqiang Co., Ltd.'s high-performance flame-retardant tarpaulin and sealing material production project (involving silicone rubber sheet business) had to be postponed to September 2026. The company's silicone rubber sheet business saw a year-on-year revenue decline of 37.04% in 2024, and the gross margin for the first quarter of 2025 dropped to 42.46%.

　　Technological innovation has also seen significant advancements. In 2025, silicone rubber coating processes will evolve rapidly around intelligentization, precision, green technology, multifunctionality, and cross-industry integration. In terms of material systems, functional liquid silicone rubber has achieved breakthroughs. For example, self-adhesive silicone rubber can achieve high-strength bonding with various materials without a primer, with interfacial peel strength exceeding 4.5 N/mm; conductive/thermally conductive composite materials have achieved thermal conductivity exceeding 2.5 W/m·K and electrical conductivity reaching the 10? S/cm level. In terms of substrate materials, applications such as 0.03mm ultra-thin PI films have enhanced product flexibility and reliability. In terms of process control, micron-level precision molding technology has achieved 0.1mm-level ultra-thin encapsulation, while AI-driven intelligent production, through real-time monitoring and adjustment, has reduced defect rates for leading companies from 3% to below 0.5%. Mold technology is evolving toward nano-coating, intelligent design, and 3D-printed mold recycling. Environmental protection and sustainable manufacturing systems are being deepened, with supercritical CO? cleaning technology reducing VOC emissions by 95%, and heat recovery from vulcanization machines lowering overall energy consumption by 20%.

　　Additionally, the 2025 Shenzhen International Silicone Industry Chain Expo is scheduled to take place from November 14 to 16 at the Shenzhen International Convention and Exhibition Center (Baoan). Shenzhen leverages its advantages in innovation ecosystems, industry chain aggregation, international outreach, and national strategic support to provide a platform for global silicone industry chain enterprises to collaborate and exchange ideas, driving technological innovation and market expansion. This expo will further facilitate communication among upstream and downstream enterprises in the silicone industry, helping the industry grasp market trends, address challenges, and achieve new development.

　　In summary, the silicone industry in late August is undergoing a critical period of transformation and development driven by capacity expansion through project construction, adjustments in market demand structure, and technological innovation. Enterprises must closely monitor industry trends, strengthen innovation and market布局, to stand out in intense competition.