Domestic Substitution Solution

Strategic Shift and Background

Yunsa Electronic’s domestic substitution initiative is not a temporary response but a core strategic move driven by global supply chain changes and China’s industrial upgrading. When the company was founded in 2005, 100% of its business was importing and distributing European and American brands. Today, that figure has dropped to approximately 50%, while domestic Chinese brands now contribute about 10% of total sales.

A key catalyst for this shift was the 34% tariff imposed on U.S. imports in April 2025. Yunsa acted swiftly by proactively offering alternative solutions – either products from non‑U.S. origins or equivalent domestic Chinese components – to help customers mitigate cost increases and maintain supply chain stability.

Core Service Offerings

Yunsa’s domestic substitution solution is a comprehensive package designed to address both cost and supply security:

• Professional Consultation and Customization
  The company provides expert advice on component alternatives. Upon receiving a customer’s specific requirements, Yunsa delivers tailored substitution proposals promptly, taking into account performance, form factor, and reliability.

• Diversified Supply Chain
  By accelerating the diversification of its sourcing channels, Yunsa offers more flexible procurement options. This reduces dependency on any single region or supplier, thereby lowering overall supply risk.

• Quality Assurance
  All domestic alternative products are 100% original and genuine, with strict quality control. Yunsa guarantees that the substitutes meet or exceed the original specifications, ensuring no compromise on product performance.

• Flexible Ordering
  As with its general procurement services, Yunsa supports small‑quantity, multi‑variety orders with no minimum order quantity (MOQ), making it easy for customers to trial new components before full‑scale adoption.

Implementation and Future Outlook

• Current Practices
  Yunsa has already integrated numerous domestic brands into its product portfolio, covering connectors, wire and cable, passive components, and more. In 2025, its export business (which includes domestic brands) already exceeds 20% of total revenue, proving that these alternatives are competitive in global markets.

• Future Targets
  The company has set a clear roadmap: over the next three years, it aims to reduce the share of pure imports to about 30%, while increasing domestic brand sales to over 30%. This balanced mix will better serve customers who seek both cost efficiency and supply resilience.