Recently, Wuhan Taiziwei Optoelectronics Technology Co., Ltd. in China launched its T150 A photoresist product, which has successfully passed mass production validation for semiconductor processes. With a fully self-designed formula, this achievement is expected to pave the way for a new era in China’s domestic semiconductor lithography manufacturing.

The T150 A product is benchmarked against the mainstream KrF photoresist series from leading international companies. Compared to the widely recognized UV1610 product in the same series, the T150 A demonstrates an extreme resolution of 120nm during the lithography process, offers greater process tolerance, higher stability, and excellent film retention after post-baking

Additionally, it is more compatible with subsequent etching processes. Validation revealed that dense patterns made with T150 A exhibit outstanding verticality of sidewalls in the underlying dielectric after etching.

Industry insiders have commented that, among KrF series photoresist products, the UV1610 product, which T150 A is benchmarked against, is considered a “commonly used resist” with high demand. Currently, Chinese manufacturers such as Beijing Kehua and Xuzhou Bokang have the capability to produce UV1610.

Currently, China’s semiconductor photoresist, especially for high-end products, is still heavily reliant on imports, with Japan being China’s largest source of photoresist imports.

According to data from China’s General Administration of Customs, the total import value of photosensitive chemicals in China reached USD 2.177 billion in 2023, with imports from Japan amounting to USD 1.149 billion, accounting for 52.8% of the total.

From January to June 2024, imports from Japan amounted to USD 638 million, up 16.7% year-on-year. In Q2 of 2024 alone, the total import value was USD 338 million, a year-on-year increase of 15.6% and a 12.6% rise compared to the previous quarter. Japan’s share of imports averaged around 51.5%, remaining at a historically high level in recent years.

Globally, the photoresist market is dominated by Japanese and American manufacturers. Six major companies—JSR Corporation (Japan Synthetic Rubber), Tokyo Ohka Kogyo (TOK), DuPont-Rohm and Haas (USA), Shin-Etsu Chemical (Japan), Sumitomo Chemical (Japan), and Fujifilm Electronic Materials (Japan)—hold a significant monopoly over the semiconductor photoresist market.

Moreover, leading manufacturers in Japan, South Korea, Europe, and the US have already achieved mass production of high-end photoresists. In contrast, the localization rate of China’s photoresists remains low. According to industry data, the domestic production rate of KrF photoresist in China is less than 5%, while the rate for ArF photoresist is less than 1%.

Despite these challenges, China’s photoresist industry has experienced rapid growth in recent years. China has now become one of the largest photoresist markets globally. There are dozens of domestic companies involved in the photoresist industry, and some have achieved significant progress. Notable examples include bcmaterial, RedAvenue, Jingrui, Shanghai Sinyang, and Nata Optoelectronic Material.

(Photo credit: Fujifilm Electronic Materials)

To jointly promote the development of Hong Kong’s microelectronics industry, Hong Kong Science and Technology Parks Corporation and MassPhoton (Hong Kong) held a launch ceremony for Hong Kong’s first ultra-high vacuum “Third-Generation Semiconductor Gallium Nitride Epitaxial Wafer Pilot Line” on July 30.

Reportedly, MassPhoton will move into the newly established Microelectronics Center (MEC) to build Hong Kong’s first 8-inch gallium nitride (GaN) epi-wafer pilot line.

According to reports from media like China News Service, MassPhoton plans to invest at least HKD 200 million in Hong Kong to establish the region’s first global R&D center for third-generation semiconductor GaN epitaxial processes in the Hong Kong Science Park. The center will develop an advanced 8-inch GaN epi-wafer process and equipment platform for the production of GaN optoelectronic and power devices.

In addition, MassPhoton will set up Hong Kong’s first ultra-high vacuum production GaN epi-wafer pilot line in the Innovation Park for small-scale production.

The pilot line is expected to be completed, followed by the construction of a GaN epi-wafer mass production line in Hong Kong, creating over 250 microelectronics-related jobs, including epi-wafer and equipment design, production process development, and more, thereby generating substantial economic value.

Currently, the global semiconductor industry is developing rapidly, simultaneously boosting the GaN market size. According to a previous TrendForce’s report, the global GaN power device market is expected to grow from USD 180 million in 2022 to USD 1.33 billion in 2026, with a compound annual growth rate (CAGR) of up to 65%.

Against this backdrop, Hong Kong has prioritized the development of third-generation semiconductor as a key technology field in recent years. For instance, in May 2024, the Finance Committee of the Hong Kong Legislative Council approved a significant investment of HKD 2.83 billion to establish the “Hong Kong Microelectronics R&D Center,” focusing on third-generation semiconductor technologies.

This plan includes setting up a pilot production line equipped with a broad range of critical tools such as I-line lithography equipment, photoresist development tools, high-temperature ion implanters, high-temperature annealing furnaces, and thin-film tools.

Sun Dong, Secretary for Innovation, Technology and Industry of the Hong Kong Special Administrative Region Government, introduced that the government is actively promoting the development of microelectronics industry, and the Hong Kong Microelectronics R&D Institute will be established within the year, accompanying the construction of a SiC pilot line and a GaN pilot line.

The goal is to assist startups and SMEs in trial production, testing, and certification, fostering collaboration across industry, academia, and research in core technologies of third-generation semiconductor industry.

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• [News] Foundry Giant GlobalFoundries Acquired GaN-Related IP
• [News] Over 350 China’s Semiconductor Industry Projects Thriving in 2023

(Photo credit: Hong Kong Science and Technology Parks Corporation)

At the time when Japan is strengthening the construction of its semiconductor supply chain, as per a report from the Japan Times, Japanese photoresist giant Shin-Etsu Chemical is rumored to build a chip material plant in Gunma Prefecture, Japan, which marks its first new domestic manufacturing base in Japan over the past 56 years.

It’s reported that Shin-Etsu Chemical plans to invest approximately JPY 83 billion (USD 547 million) in Isesaki City, northern Tokyo, Gunma Prefecture, Japan to construct a factory covering an area of around 150,000 square meters, which is scheduled to be completed in 2026.

This new base, to produce photoresist and other materials used in semiconductor lithography processes, will become the strategic center for Shin-Etsu Semiconductor Materials, exporting to South Korea, the United States, and other regions. The company also plans to conduct research and development there eventually.

Public data shows that Shin-Etsu Chemical holds about 20% of the global photoresist market, especially in advanced product field, where it aims to capture at least 40% market share. Currently, the company mainly produces photoresist in Taiwan and Niigata Prefecture, Japan.

Japan has long held a strong global market position in upstream semiconductor aterial markets, especially in areas such as silicon wafers and photoresist, where its market dominance remains unshaken.

Currently, many Japanese companies are expanding production and conducting research and development. Industry sources indicate that Mitsui Chemicals is expanding a factory in Yamaguchi Prefecture to produce films, which are used to protect photomasks from dust and damage during the lithography process.

Mitsui Chemicals will invest between JPY 5-9 billion and begin mass production in 2025 or 2026. Fuji Film has also started domestic production of CMP slurry for wafer polishing in Japan, and Nippon Sanso Holdings plans to start producing neon gas (Used in the chip manufacturing process) in Japan around 2026.

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• [Insights] Analysis of the Global Photoresist Market in 2023

(Photo credit: TSMC)

The sales revenue of the 2023 semiconductor photoresist market is expected to decline by 6-9% year-on-year. With continuous improvement in downstream customer inventory and gradual recovery of production capacity, the semiconductor industry is expected to experience a revival in 2024, and demand for photoresists is also expected to rebound.

TrendForce has released its latest report, ‘Analysis of the Global Photoresist Market in 2023,’ analyzing the market conditions and competitive landscape of the photoresist market. Excerpts from the report are as follows:

1. Semiconductor Demand Expected to Rebound in 2024

With the ongoing improvement in downstream customer inventory, gradual recovery of production capacity utilization, and the maturation and surge in applications such as AI and smart automobiles, it is anticipated that the semiconductor industry will experience a revival in 2024.

The semiconductor photoresist market is also poised for a rebound, with market size returning to the historical peak of 2022 and further growing to surpass USD 2.8 billion by 2027.

2. High-End Photoresists Show Significant Growth Potential as Chinese and Korean Suppliers Strive for Localization Breakthroughs

With the sustained growth in demand for advanced processes, high-end photoresists such as EUV, ArFi/ArF, will continue to grow as well. In particular, EUV photoresists are poised for substantial growth as the industry pursues chips with increased computational power and energy efficiency.

The quantity of advanced chips produced using EUV technology is expected to surge significantly, making EUV photoresists the segment with the greatest growth potential in the semiconductor photoresist market. It is projected that by 2025, EUV photoresists will account for a 10% share of the market.

Due to the high barriers to entry in photoresist production, currently, Japanese manufacturers dominate the global photoresist market with a supply proportion of approximately 80%.

Particularly in advanced photoresist areas such as EUV, ArFi/ArF, major Japanese companies like JSR, TOK, and Shin-Etsu Chemical hold absolute dominance, and incidents of supply disruptions from Japanese photoresist suppliers are not uncommon.

In response to the risk of supply disruptions, both China and South Korea have actively promoted the localization of photoresist production. In South Korea, companies like Dongjin Semichem and SK Materials have made significant progress in the field of advanced photoresists, achieving domestic production of certain ArFi and EUV photoresists.

In China, the domestic production rate of photoresists in the mid-to-low-end range has reached 30%, and efforts in research and development are continually strengthening in the field of ArF and EUV photoresists. Partial import substitution has been achieved for ArF photoresists, and it is anticipated that the domestic production rate will gradually increase in the future.

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• [News] Global Photoresist Prices Are on the Rise, Posing Challenges for the Semiconductor Industry

(Photo credit: Unsplash)

Due to escalating raw material and labor expenses, The Elec reported that Dongwoo Fine-Chemistry, a subsidiary of Japan’s Sumitomo Chemical, plans to increase the prices of KrF and L-line photoresists for South Korean semiconductor companies. Price increases vary depending on the type of offering, ranging from around 10% to 20%.

As a pivotal material in semiconductor manufacturing, photoresist leverages photochemical reactions and undergoes processes like exposure and development through photolithography. This facilitates the transfer of intricate patterns from the reticle to the processing substrate. The KrF photoresist highlighted in this report represents a high-end variant, marking a significant competitive market for future players.

The photoresist market has been dominated by several major manufacturers such as Tokyo Ohka Kogyo, DuPont, JSR, Shin-Etsu Chemical, Sumitomo Chemical, and Dongjin Semichem. This market concentration is particularly pronounced in the market segment for semiconductor photoresist.

The photoresist industry demands high specialization, involving intricate formulations of resins, photosensitive acids, and additives—guarded as trade secrets by each company. The substantial technological barrier, coupled with the necessity for purity and performance from laboratory trials to market production, makes the entire product development process time-consuming and intricate. Additionally, meeting customer requirements and adaptation of the production line requires 1 to 3 years of validation, making it challenging for the customers to shift from current photoresist companies.

Faced with technological and customer-centric challenges, photoresist companies wield substantial negotiating power. The recent uptick in photoresist prices has prompted a noteworthy response from the South Korean semiconductor industry.

Insiders from the foundries commented, “In the face of rising photoresist prices, foundries have little choice but to pass on some of the costs to customers (fabless companies).” They further noted, “The price increase in Dongwoo Fine-Chemistry’s photoresist may contribute to a decline in the profitability of foundries and the fabless industry.”

(Image: Dongwoo Fine-Chemistry)