1. Domestic circulation: Activating the potential of domestic demand and consolidating the foundation of the industry
The core of the domestic circulation lies in forming a virtuous interaction through domestic demand and supply upgrades. The silicone industry needs to closely follow the opportunities of structural upgrades in the domestic market and focus on breakthroughs in three major areas:
New energy industry chain supporting: The demand for new energy materials such as photovoltaic films and lithium battery electrolyte additives continues to increase. Taking Sanfu Silicon Industry as an example, its high-purity silicon tetrachloride product has a purity of 99.9999%, and has achieved domestic substitution in high-end fields such as optical fiber preforms and semiconductor silicon wafers. In 2022, the gross profit margin of this product reached 45%, an increase of 20 percentage points over traditional products.
Consumption upgrade drive: The annual compound growth rate of market segments such as medical-grade silicone catheters and food-grade silicone products exceeds 15%. Cabot Hengyecheng converts silicone by-products into fumed silica through patented technology to achieve a silicon-chlorine dual cycle. The energy consumption per unit product is 30% lower than the industry average, and the products are widely used in cosmetics and medicine.
Regional collaborative layout: Relying on the Yangtze River Delta and Pearl River Delta industrial clusters, build an integrated base of "silicon mine-monomer-terminal products". The industrial silicon-organic silicon monomer integrated project deployed by Hesheng Silicon Industry in Xinjiang has reduced the electricity cost to 0.25 yuan/kWh through its own power plant, which is 40% lower than the industry average, forming a significant cost advantage.

2. International circulation: Optimize global resource allocation and enhance the value chain position
The international circulation needs to break through trade barriers through technology output and localized production:
"Belt and Road" capacity cooperation: Dongyue Silicon Materials has built a silicone oil production base in India, taking advantage of the local low labor costs and tariff preferences to reduce the overall cost of products by 18%, and successfully entered the South Asian market.
Internationalization of standard system: The "Silicone Sealant for Photovoltaic Modules" group standard led by Huitian New Materials has been adopted by the EU photovoltaic module certification system, promoting Chinese products from "price competition" to "standard leadership".
High-end material technology output: The silicone-modified epoxy resin technology developed by Xin'an Chemical entered the European market through technology transfer, and the technology licensing income of a single project exceeded 50 million yuan, realizing the leap from product output to technology output.

3. Dual circulation synergy: Institutional innovation and technological change dual-wheel drive
Building a dual circulation requires breaking through three major institutional bottlenecks:
Circular economy legislation: Promote the legislation of the "Clean Production Evaluation Standards for the Silicone Industry", clarify the comprehensive utilization rate indicators of by-products, and give tax exemptions to the Cabot-style circular economy model.
Digital infrastructure empowerment: Sanfu Silicon Industry invested 20 million yuan to build a smart management platform to achieve real-time monitoring of production data and dynamic optimization of energy consumption, making the carbon emissions per unit product 25% lower than the industry average.
Innovation of talent mechanism: Establish a "Chief Scientist of Silicone" system, and give tens of millions of yuan in rewards to teams that overcome "neck" technologies such as 107 glue synthesis technology and hydrosilylation reaction catalysts to accelerate technology iteration.