Lithography is an integral part of semiconductor processing, and this process determines the performance of the chip. Among them, lithography accounts for 40%-50% of chip manufacturing events and 30% of its total cost. Photolithography materials are key materials in the semiconductor manufacturing process, of which photoresist is the most important component. Photoresist is a light-sensitive polymer that, under specific wavelengths of light, can excite photochemical reactions and change its solubility in the developer for patterning purposes.
At present, the global photoresist market is basically monopolized by Japan and United States companies, of which Japan's JSR, Tokyo Oika, Shin-Etsu Chemical and Fuji Electronics occupy more than 70% of the global market share. China's local photoresist market is gradually developing, but it is mainly dominated by photoresist for PCB, and the supply of photoresist for flat panel display and semiconductor is relatively low, and there is huge room for development.
According to TECHCET’s forecast, semiconductor photoresist revenue will grow by nearly 11% in 2024. The semiconductor market as a whole will recover in 2024, especially in the second half of the year, which will drive demand growth for all photoresists. At the same time, photoresist auxiliary equipment is expected to grow by about 10%, and extended equipment is expected to grow by 9%.
Figure: Lithography Materials Revenue Forecast
The lithography materials market is experiencing significant growth, a trend driven by a number of factors. First of all, with the rapid development of the semiconductor, panel display and PCB industries, the demand for key materials such as photoresists is increasing. As the core upstream material of micro-pattern processing in the field of microelectronics, photoresist occupies the commanding heights of electronic materials, and its quality directly affects the quality of downstream products. The growth of the Chinese market is particularly rapid, with the market size expected to reach about RMB 12.1 billion in 2023 and is expected to exceed RMB 20 billion by 2029, with a compound annual growth rate of about 10%.
In addition, with the continuous advancement of integrated circuit manufacturing processes, there is a growing demand for high-end photoresists. In particular, KrF and ArF photoresists, which cover most of the processes from 250nm to 7nm, are driving the premiumization of the photoresist market. In this context, domestic and foreign enterprises have increased research and development efforts, in order to break through technical barriers and achieve domestic substitution. For example, Chinese companies such as Beijing Kehua, Nanda Optoelectronics and Jingrui Electric Materials have made significant progress in semiconductor photoresist technology, among which the 193nm ArF photoresist independently developed by Nanda Optoelectronics passed the customer's certification in December 2020.
Policy support is also one of the important factors driving the growth of the lithography materials market. The Chinese government has successively introduced a number of policies to support the photoresist industry and promote the improvement of domestic substitution rate. Especially in the context of changes in the global trade environment and the localization of the semiconductor industry chain, the domestic photoresist industry has ushered in a golden development opportunity.
