The main components of photoresist are additives such as resins, photosensitive agents, solvents, and surfactants. The solvent mainly disperses the components of the photoresist to provide liquidity for the photoresist. Currently, the solvent used for semiconductor and panel photoresists is mainly PGMEA (propylene glycol methyl ether acetate, also referred to as PMA); When used in combination with photosensitive agents, resins are the main functional components of photoresists that play a photosensitive role. The composition of resins and photosensitive agents varies greatly among different types of photoresists, depending on the length of the photosensitive wavelength, they are mainly phenolic resin-diazonaphthaloquinone system (g line/i line), p-hydroxystyrene photoacidogenic agent system (KrF), acrylate photoacidogenic agent system (ArF), molecular glass or metal oxide system (EUV). Other additives include surfactants, stabilizers, etc.

Although there are differences in the content of each component in various photoresists, the resin content is generally below 20%. Generally, the shorter the wavelength, the lower the resin content, and the higher the solvent content of the photoresist. The resin content of the g-line/i-line photoresist is around 10-20%, the resin content of the KrF photoresist is below 10%, and the resin content of the ArF photoresist and the EUV photoresist is generally below 5%.

Another important component of photoresist is photosensitive agent. g line/i line adhesives and panel adhesives use photoinitiators, including DNQ (diazonaphthaloquinone), as photosensitive agents, while modern semiconductor photoresists based on chemical amplification methods (KrF, ArF, EUV) all use photoacidogenic agents as the main photosensitive component.

In addition to resins and photosensitive agents, solvents and other additives such as leveling agents, surfactants, etc., are mainly used to form a uniformly dispersed solution system for photoresists. The majority of the solvents used for various types of photoresists are propylene glycol methyl ether acetate, referred to as PGMEA overseas and PMA domestically.

 

 

 

 

Panel photoresist is different from semiconductor photoresist. Panel TFT photoresist is similar to the g-line/i-line photoresist in semiconductor photoresist, while color photoresist is essentially different from black photoresist from panel photoresist: ① Semiconductor photoresist, whether positive or negative, is a consumable material in the wafer manufacturing process, and is ultimately removed during the IC manufacturing process without being present in the chip end product, On the contrary, the color glue and black glue on the panel will remain in the color filter; ② Color and black adhesives require the addition of pigments or dyes in order to present color, while semiconductor photoresists do not.

 

 

 

 

 

 

 

 

Japan occupies a dominant position in the industrial chain.

From the perspective of the industrial chain supply system, the current photoresist and upstream raw material industry chain is mainly located in Japan. In addition to Japanese enterprises, South Korea SKC and the United States Dow DuPont also participate.

 

 

 

 

What kind of industry is photoresist.

Photoresist, also known as“ Photoresist”, It is the carrier medium for photolithography imaging, and can use photochemical reactions to convert the diffracted and filtered optical information in the photolithography system into chemical energy, thereby transferring fine patterns from the mask to the substrate to be processed. It is widely used in the processing and fabrication of micro graphics circuits in the photoelectric information industry, and is a key material for micro processing technology.

In a word, photoresist is the most important consumable in photolithography, and its performance determines the precision and yield of the finished product. However, photolithography is a key process in the manufacturing of precision electronic components, which makes photoresist play a crucial role in the entire electronic component processing industry.

 

 

It should be emphasized that although photoresist and chips have been repeatedly mentioned in the media in recent years, it has never been used solely for semiconductor production, and even in the three mainstream application fields (semiconductor, PCB, and LCD), the market scale of semiconductor photoresist is the smallest. Due to space constraints, this article will focus on the most highly regarded and typical“ Stuck neck” Domain&mdash& mdash; Semiconductor photoresist, other uses will only be briefly introduced, not detailed.

From the perspective of the overall industrial chain, the upstream of photoresist is a variety of specialized chemicals, belonging to the fine chemical industry; Downstream are various electronic component manufacturing industries.

 

 

From the perspective of raw materials for production, the upstream of photoresist is a variety of specialized chemicals, belonging to the fine chemical industry, including photoinitiators (photosensitizers, photoacidogenic agents), solvents, film forming resins, and additives (additives, monomers, etc.).

 

 

In terms of dosage, solvent (mainly propylene glycol methyl ether acetate, referred to as PMA) is the largest material used, with a content of up to 90%, but it is not prominent in cost and does not play a key role; As the core part of photochemical reaction, the dosage of photoinitiator is only about 1%~6%; The amount of resin used in different photoresist products varies greatly.

 

 

From the perspective of cost, in the field of semiconductor photoresists, the more advanced the process, the higher the proportion of resin cost: Take KrF (KrF) photoresist as an example, the proportion of resin cost is as high as about 75%, photosensitive agent is about 23%, and solvent is about 2%.

 

 

 

 

Classification of photoresists.

The classification methods of photoresists are diverse, and generally follow three major classification methods:.

According to the principles of chemical reaction and development, it can be divided into positive photoresist and negative photoresist.

According to the chemical structure of raw materials, they can be divided into photopolymerization type, photodecomposition type, photocrosslinking type, and chemical large-scale.

According to downstream application fields, it can be divided into PCB photoresist, panel (LCD) photoresist, semiconductor photoresist, and other photoresists.

Positive photoresist and negative photoresist.

This classification is mainly based on the corresponding relationship between the final formed pattern and the mask pattern due to the chemical reaction with the developing solution during development after illumination.

The exposed portion of the positive photoresist is dissolved in the developer, and the areas illuminated during the etching process are removed by plasma gas etching. The final pattern left is the areas not illuminated by the light during the exposure process, which is the same as the pattern on the mask.

Negative photoresist is the opposite of positive photoresist. The exposed portion of negative photoresist is insoluble in the developer, and areas that are not illuminated are removed. The pattern formed during development is the opposite of the mask.

 

 

The production process flow of positive and negative adhesives is basically the same, but there are differences in performance. From the perspective of development, negative adhesives were first used in photolithography and have the advantage of being more corrosion resistant. However, due to their susceptibility to deformation and expansion during development, negative adhesives have poor performance in the most critical resolution, and cannot be used in advanced manufacturing processes.

 

 

Photopolymerization, photodecomposition, photocrosslinking, and chemical amplification.

This classification method is based on the chemical structure of photosensitive resins in raw materials. The photopolymerizable and photodegradable types are mainly used in positive photoresists, while the photocrosslinked type is a typical negative photoresist. The chemically amplified type is currently the most advanced type and is widely used in advanced manufacturing processes.

 

 

PCB photoresist, LCD photoresist, semiconductor photoresist.

This classification is based on the application field of photoresist, and is also the most well-known standard.

 

 

Among the three main types of photoresists, PCB (Printed Circuit Board) photoresist is the lowest end and also the field with the highest localization rate, accounting for 3% to 5% of PCB manufacturing costs. It can be divided into dry film photoresist, wet film photoresist, and photo imaging solder resist ink.

With China's advantages in labor and resources, the PCB industry has begun to shift domestically since the 21st century. Domestic manufacturers have mastered the core technology for producing key materials upstream of PCBs, and are highly competitive in terms of production capacity and cost. According to data, in 2019, the global PCB output value was about 63.7 billion US dollars, and China's PCB market size reached 32.94 billion US dollars, accounting for more than 50% of the global market share, making it the largest PCB producer.

 

 

Data source: Xinda Securities [2], Fruit Shell Hard Technology Mapping.

The photolithography process is also the core process of LCD panel manufacturing, so LCD photoresist, also known as Liquid Crystal Display photoresist, is also the core consumables of the industry. Color filters are the key devices for realizing color display on LCD displays, accounting for 14% to 16% of the panel cost, and their production costs directly affect the selling price and competitiveness of LCD products; Color photoresist and black photoresist are the core materials for preparing color filters. In the cost of color filter materials, color photoresist and black photoresist account for about 27% of the overall cost [5].

However, similar to semiconductor photoresist, China's localization rate in the panel photoresist field is also low, and its production capacity is mainly concentrated in the relatively low-end touch screen photoresist field. The current market of color and black photoresist with higher added value is monopolized by Japanese and Korean manufacturers. Taking the color photoresist with the largest demand as an example, Japanese, Korean and Taiwan, China enterprises such as Tokyo Yinghua, LG Chemical, Toyo Ink, Sumitomo Chemical, Mitsubishi Chemical, Qimei, etc. occupy more than 90% of the market share, and China's independent supply capacity is also weak.

 

 

Data source: Xinda Securities [2], Fruit Shell Hard Technology Mapping.

In the semiconductor field, photolithography is the most core and important processing step, with a cost of about 30% of the entire chip manufacturing process and a time consumption of about 40% to 50% of the entire chip process. As the core medium of this process, the quality and performance of semiconductor photoresist are key factors that affect chip performance, yield, and reliability, and have a crucial impact on the overall photolithography process.

With the market's requirements for miniaturization and functional diversification of semiconductor products, semiconductor photoresists continue to improve limiting resolution by shortening exposure wavelengths, thereby adapting to evolving lithography processes.

According to different exposure wavelengths, semiconductor photoresists can be further divided into ordinary broadband photoresists, g-line photoresists (436 nm), i-line photoresists (365 nm), KrF photoresists (248 nm), ArF photoresists (193 nm), and advanced EUV photoresists (< 13.5 nm).

Among them, ArF lithography machines involve two processes: dry process and immersion process (the difference lies in whether the medium between the lens and photoresist is air or liquid), and ArF photoresist is also divided into two categories: dry process and immersion process. EUV photoresist is the most difficult product to manufacture, and it is also the core raw material in the chip processing process of 7nm and below.

 

 

Some readers may also see the name DUV, Deep Ultraviolet Lithography, which refers to the exposure wavelength of 160 to 280 nm, covering the entire generation of technology before EUV. Currently, in photolithography, it refers to KrF and ArF.

In addition to the above standards, there is also a technical specification called F2 with an exposure wavelength of 157 nm, but it has been eliminated and failed to achieve industrial production. The main reason is that this specification was defeated by ArF in the development process, and behind it is the most significant divergence of routes in the semiconductor industry, which has shaped the order of the semiconductor processing industry we see today.

At that time, lithography machine manufacturers led by Nikon and Canon tried to advocate the F2 specification of 157nm light sources, which could improve the resolution by about 20%. However, this route had two fatal defects:.

The optical materials used in the mirror group are all in a highly absorbent state at 157 nm, which absorbs laser radiation and heats up and expands, resulting in deformation and spherical aberration. Therefore, it is necessary to use CaF2 to manufacture the mirror group. However, the CaF2 mirror group has a short service life, and its core technology is in the hands of Nikon, resulting in low production capacity, which cannot meet the requirements of large-scale applications.

Due to the strong absorption of the photoresist used in ArF at 157 nm, the photoresist needs to be re developed, resulting in a low input output ratio.

At the same time, TSMC engineer Lin Benjian proposed an immersion scheme based on the ArF light source, which changes the medium between the lens and photoresist from air to liquid. With this scheme, TSMC was able to refract the ArF 193 nm exposure wavelength and achieve an equivalent wavelength of 134 nm. By improving existing technology, the resolution exceeds the F2 route. At the same time, because this scheme is to upgrade existing equipment, it has a rolling advantage in terms of cost performance. Worse, F2 is not permeable to water, which leads to its incompatibility with immersion technology [6].

The first response to TSMC's proposal was ASML, which launched the first prototype immersion lithography machine in 2003, successfully taking the lead. When Nikon launched the immersion lithography machine in 2006, the trend was over. Finally, ASML surpassed Nikon as the leader of lithography machines in 2006, confirming its dominant position in the era of deep ultraviolet light.

In addition to the three categories of photoresists mentioned above, there are more diverse types of photoresists for CCD camera color filters, MEMS photoresists, touch screen transparent photoresists, biochip photoresists, thin film magnetic head photoresists, and so on.

 

 

Overview of photoresist market.

It should be noted that although photoresist is the core material in the electronic component processing industry, the overall market size is not large.

According to public data, the global photoresist market size in 2019 is expected to be about 9.1 billion US dollars, with a compound annual growth rate of about 5.4% from 2010 to 2019. It is estimated that the data for 2021 will be around 10 billion US dollars; During the same period, the local photoresist market size in China was about 8.8 billion yuan.

From the perspective of market segments, in the global photoresist market, LCD, PCB, and semiconductor photoresist each account for 27%, 25%, and 24% of the market, with an average market distribution. Although semiconductor photoresist accounts for the lowest proportion, it is the segment with the best growth potential and the highest technical difficulty.

 

 

Data source: Public information, organized by Fruit Shell Hard Technology.

In terms of overall business format, the global photoresist market is highly concentrated, with Japan and the United States controlling the vast majority of the market share. Four Japanese companies, JSR, Tokyo Yinghua, Shinyue Chemical, and Fuji Film, account for over 70% of the global market share, with a stable overall monopoly position.

 

 

Data source: Tianfeng Securities, Fruit Shell Hard Technology Cartography.

Specifically, in the semiconductor field, the characteristics of semiconductor photoresist are not significantly different from the overall photoresist industry: the market size is small, concentration is extremely high, and Japanese and American enterprises monopolize supply.

According to data, the global semiconductor photoresist market size in 2020 was approximately 1.75 billion US dollars, although its position is crucial, its share in the entire semiconductor industry chain is also very low [7]. During the same period, the global semiconductor market size was 426 billion US dollars, and based on calculations, the semiconductor photoresist market accounted for only 0.4% of the overall industry.

In terms of market segments, ArFi photoresist (i.e., immersion ArF photoresist) and KrF photoresist have the largest market share, both above 30%, followed by g/i photoresist, with a market share of about 17%, while EUV and other types of semiconductor photoresist have only about 1%. However, in terms of future development, as the key consumables for EUV photolithography, which represents the development trend of advanced integrated circuits, EUV photoresist plays a key role in promoting the chip manufacturing process to below 5 nm, and its growth is undoubtedly the best.

 

 

Data source: Prospective Industry Research Institute, Fruit Shell Hard Technology Cartography.

In the global semiconductor photoresist market, Japanese companies have a stable monopoly position. In 2020, Japanese companies accounted for at least 60% of the global semiconductor photoresist market, with Tokyo Yinghua occupying a leading position with a 25.6% market share; DuPont ranked second with a market share of 17.6% [9].

 

 

Data source: Prospective Industry Research Institute, Fruit Shell Hard Technology Cartography.

From the perspective of market segments, in 2020, Japan's Tokyo Yinghua ranked first in the global market share in the g/i line, KrF, and EUV photoresist markets; JSR controls the ArF photoresist market with a 24.9% market share.

The market concentration of semiconductor photoresist is very high from the overall situation to the segmentation: the overall market CR4 (concentration ratio of the industry) is nearly 70%; In the ArF and KrF markets, CR4 is above 74%; The EUV market is even more exaggerated, with the CR3 of three Japanese companies, Tokyo Yinghua, Shinyue Chemical, and JSR, reaching 99.9%, and having achieved a complete monopoly.

 

 

Data source: Prospective Industry Research Institute, Fruit Shell Hard Technology Cartography.

Focusing on the local market, the current domestic semiconductor photoresist market is also limited in size, but the overall growth rate is relatively fast. According to data from the American Semiconductor Association, the Chinese semiconductor photoresist market has increased from $130 million in 2015 to $250 million in 2019, and rapidly jumped to $350 million in 2020, with a year-on-year growth of about 40%.

 

 

Data source: Prospective Industry Research Institute, Fruit Shell Hard Technology Cartography.

The market structure of semiconductor photoresist in China. In 2020, ArF photoresist accounted for 40%; KrF photoresist accounted for 39%; G/i line photoresist accounts for 20%; EUV photoresist has no statistically visible data.

 

 

Data source: Prospective Industry Research Institute, Fruit Shell Hard Technology Cartography.

However, in that sentence, a small market does not mean that it is not important. As the most critical or even non-existent consumable in the manufacturing of precision electronic components, the need to develop photoresist cannot be overemphasized. However, when it comes to implementation, the industry still faces enormous difficulties.

 

 

Critical“ Bad” Industry.

Although we have repeatedly emphasized the important position of photoresist in the semiconductor manufacturing industry, the current domestic substitution progress is really not very good.

From the perspective of the overall industrial structure of local photoresists, relatively low-end PCB photoresists still account for about 94% of the domestic supply, while high-end panel photoresists and semiconductor photoresists are very few.

 

 

Data source: Northeast Securities, Fruit Shell Hard Technology Cartography.

Specifically, for semiconductors, the self-sufficiency rate of g-line and i-line photoresists applicable to 6-inch silicon wafers is currently about 10%, and the self-sufficiency rate of KrF photoresist applicable to 8-inch silicon wafers is less than 5%. However, ArF photoresists applicable to 12-inch silicon wafers are basically dependent on imports, while even more advanced EUVs are in a relatively early stage of research and development. In terms of production capacity, only g/i-line photoresists of domestic enterprises achieve batch application, while only a few enterprises with a leading R&D progress achieve small batch application. Even the most optimistic estimate, there is a gap between the domestic photoresist industry and the internationally advanced water industry of two generations.

 

 

Currently, domestic photoresist companies are making relatively good progress, including Beijing Kehua (KrF mass production, EUV under research), which was purchased by Tongcheng New Materials (sh603650), Nanda Optoelectronics (sz300346), which has small batch orders for dry ArF adhesives, and Shanghai Xinyang (sz300236), which has both dry and immersion ArF lithography machines that can simultaneously develop two types of photoresists and is expected to achieve a small amount of sales by 2022. The overall R&D progress of these three companies is relatively advanced, with relatively complete R&D equipment, and a production capacity under construction.

The reason for this is that the entire photoresist industry is facing formidable challenges, both from the technical threshold and the commercial level. In a simple summary, it can be summarized in four words: more work, less money.

Complex and comprehensive technical dilemmas.

The first barrier that cannot be overcome in front of photoresist is the need for a photolithography machine for product testing. However, this is precisely one of the fields currently restricted in China, and it is even stricter than photoresist. Both domestic companies and Asme (AMSL, a Dutch company, and a US owned company) have made considerable efforts to find a way to circumvent the US blockade, but so far, the results have been minimal.

In the research and development phase of photoresist, enterprises need to use photolithography machines to verify the performance of products and supporting chemical reagents, which are essential equipment for independent exposure testing; During the mass production process, the production line also needs to use a lithography machine as a detection device to achieve stable quality control.

Four word summary: No, no, no.

This has created a very awkward situation: the industry currently lacks the ability to verify whether the product is actually usable or not. Engaging in this cutting-edge field; Blind Man Touch Elephant” "The research and development of EUV photoresist is also unrealistic. It is probably not as difficult to expect a company to develop a mass-produced EUV photoresist without an EUV lithography machine as a monkey to produce the complete works of Shakespeare.".

Therefore, if photoresist wants to make a breakthrough, it must be supported by research and development breakthroughs in the field of lithography machines.

On the other hand, not only is it impossible to produce photoresist in China, but the overall industrial chain is relatively weak and the supply chain integration ability is not strong. The localization rate of upstream core raw materials such as resins and monomers is also not high, and there is a significant gap between the existing process and the international advanced level. As the core raw materials of photoresist, specialized chemicals themselves also rely on imports.

 

 

Similar to the overall photoresist industry itself, the concentration of upstream raw materials in photoresist is also high, and related technologies have long been controlled by a few companies. Domestic enterprises only have some competitiveness in the upstream of PCB photoresist, but in the upstream of panel and semiconductor photoresist, suppliers are still generally suffering from insufficient technology accumulation, low production capacity, low investment level, and unable to open up the market.

Taking electronic grade phenolic resin as an example, due to the demand for mass production, it is necessary to ensure that the molecular weight distribution and performance of different batches of high molecular resin are basically consistent in the production of resin, resulting in an astonishing difficulty in the synthesis of film forming resin, which is dominated by Japanese and Korean chemical enterprises. The most commonly used photoresist solvent, propylene glycol methyl ether acetate (PMA/PGMEA), is mainly produced in the United States, Western Europe, and other countries and regions. The main manufacturers are Dow Chemical, Eastman Chemical, Basel Netherlands, BASF Germany, and other enterprises. The history of technological research and development has been over 30 years, with a significant leading advantage.

But this is not an upstream enterprise“ Don't think ahead”. Due to the relatively slow development of the domestic photoresist industry itself, weak downstream demand, and the lack of necessary research and development motivation for upstream suppliers, there is no reason to forcibly compete in the market in a highly concentrated industry that has accumulated advantages for decades, which is at least commercially uneconomical. Currently, in order to solve the difficulty of upstream raw material supply, it is also necessary to rely on the market growth brought about by the rapid development of the photoresist industry itself to provide sufficient benefits for upstream enterprises to increase R&D investment.

The highly specialized needs of customers are also a problem. Driven by technological development and accelerated upgrades, the current downstream end application products of photoresists exhibit a trend towards customization and diversification: the requirements of different downstream customers vary significantly, even if the different application requirements of the same customer are not consistent.

This leads to the lack of a unified process for the overall production of photoresists. The raw materials used for each type of photoresist differ in chemical structure and performance, requiring the use of specialized chemicals with different quality levels. This forces manufacturers to have the ability to design different formulations that meet different needs, and to have corresponding production processes to complete production. This is one of the core technologies in the industry, which requires relatively high technical capabilities of enterprises. Currently, local enterprises are still relatively lacking.

Patents are the cutting edge of the photoresist industry. Due to its early start, Japanese and American companies have a huge advantage in patent accumulation in the field of photoresist. In terms of industrial technology capabilities, international photoresist companies have established a comprehensive patent system and regional coverage for their core products.

According to the data provided by the smart bud patent data platform, currently, the largest technology source country for photoresist in the world is Japan, with patent applications accounting for 46% of the total global photoresist patent applications; The United States ranked second with 25% of applications. China ranks behind South Korea with 7% of applications. In terms of trend, the number of photoresist related patent applications in China is growing rapidly, and in 2020, it achieved the goal of opposing Japan. In 2020, the number of photoresist patent applications in China was 12900, while the number of photoresist patent applications in Japan decreased to 8982.

 

 

 

 

However, due to the lagging start, domestic photoresist patents are concentrated in mature process areas, and core patents are still weak. Taking EUV photoresist as an example, only the Institute of Chemistry of the Chinese Academy of Sciences and the Beijing Institute of Technology are listed as academic institutions in China. How to break through the comprehensive patent barriers of overseas enterprises in the future will also be a problem.

 

 

Data source: Smart Bud.

Extremely unclear business prospects.

If there are only technical difficulties, the commercialization of photoresist is also very difficult.

First, the initial investment is amazing. “ Made of Jingrui electrical material (sz300655); Research and development project of high-end photoresist (ArF photoresist) for integrated circuit manufacturing” For example, the proposed investment for this project is only 490 million yuan, of which the investment amount for ArF lithography machine is as high as 150 million yuan, accounting for 44% of the equipment and installation costs, and 31% of the total investment& mdash; The price of just one lithography machine is close to twice the net profit attributable to the parent company (80 million yuan) of Jingrui Electric Materials in 2020.

 

 

Moreover, this is only an ArF lithography machine, and the advanced EUV lithography machine is even more exaggerated. The current quotation has exceeded $120 million. However, considering the possibility that the US side will never relent at this stage, it is a rare item that cannot be bought and is not allowed to be bought with money.

The high investment in the early stage is just a stepping stone, and photoresist still faces a long customer verification cycle.

Due to the functionality and quality of photoresists, which have a very direct impact on the product quality of downstream electronic components, coupled with the highly precise characteristics of the industry, any quality problem may cause extremely serious losses to downstream enterprises. For example, in 2019, TSMC once scrapped tens of thousands of 12-inch wafers due to pollution of photoresist materials, resulting in a direct loss of $550 million [14]&mdash& mdash; Even for TSMC, this is not an understatement, and given the current volume of domestic enterprises, the amount is sufficient to cause the enterprises liable for compensation to fail several times.

Therefore, downstream customers are very cautious in purchasing specialized chemicals such as photoresists. Potential suppliers must undergo sufficient research and verification of their products, which leads to a lengthy certification process.

The data shows that even for relatively low-end products such as panel photoresists, the verification cycle often takes 1-2 years, while for key semiconductor photoresists, it takes 2-3 years, which also leads to a weak incentive for downstream enterprises to change suppliers and a deep binding between upstream and downstream. At the same time, due to the highly diversified product characteristics of photoresists, the testing requirements and verification processes of different customers are also inconsistent, resulting in more complex uncertainties.

 

 

Data source: Prospective Industry Research Institute, Fruit Shell Hard Technology Cartography.

As a result, the commercialization prospects of the entire industry are not optimistic. The investment threshold is too high, the early investment recovery cycle is too long, and it is not friendly enough for social capital seeking a rate of return.

Moreover, as a high-end, sophisticated industry, there is always a fundamental risk to face, namely, research and development failure. The research and development of cutting-edge products such as photoresists is not about farming land, and even farming land faces the possibility of extreme weather and crop failure. It is normal for a large amount of investment to never return, and projects to fail to achieve the expected results. This has been mentioned many times in previous technical articles by Fruit Shell Hard Technology.

This requires a certain level of business performance, at least a stable cash flow business to hedge the risk of R&D failure. In contrast, the current domestic enterprises are generally small in size, immature in maturity, and generally have a relatively general ability to resist risks. This is undoubtedly an industry wide dilemma that cannot be ignored.

 

 

Money, money never changes.

In the final section of the article, let's talk about why there are so few entrants in such an important field.

Because photoresist is really not a good business.

Throughout the full text, we can find that the photoresist industry is characterized by a small overall market size, a high degree of industry monopoly, and highly specialized upstream products. It has narrow application areas, high technical barriers, high research and development costs, high failure risks, and long investment recovery cycles, and even political risks that cannot be ignored& mdash; In the current international environment, if a company truly makes a significant breakthrough, the probability of being sanctioned by the United States is not low (refer to the experience of the AI Four Dragons).

From the perspective of investment, this industry violates almost every objective rule, which can be said to be as much persuasion as persuasion. However, in China, it is faced with the following characteristics:; Stuck neck” The segmentation of features is very common in technology. To take an inappropriate example, like the steel ball with a ball pen core, the market is too small and mature, and other enterprises have no reason to spend money to enter the market and forcibly compete with monopoly companies. Whether it can be done without discussion, even at the commercial level, is not cost-effective.

Typical“ Yes, but it's not necessary.

Such industries are naturally difficult to attract social capital for investment. After all, investment requires returns, returns, and exit mechanisms, and these“ High Precision” "The industry generally lacks these key characteristics, in other words, it is too difficult to make money. Rather than investing billions or even billions in pursuit of poor expectations, it is better to spend money directly on finished products.".

This“ "It's better to buy than to make"; "The pattern of" "was originally very popular and common in the high-tech industry that highly relies on international division of labor, such as chips. The entire industrial chain is distributed globally and is a normal ecosystem (for example, 90% of the components of ASML's EUV lithography machine are imported).".

This manufacturing model derived from the process of globalization is known as“ International Division of Labor”. Although the meaning of international division of labor varies from one historical period to another, there will not be much deviation in understanding it. This article is not a rigorous academic paper and will not discuss the specific definition of this concept and global practice here.

Unfortunately, this mode can only be established on“ Anti globalization” Under the less significant international situation, ideological conflicts are becoming increasingly fierce, and any product in any industry may incur sanctions from the other side of the ocean today&mdash& mdash; Is it still important whether it is possible to waste investment? Now it is the most basic question whether there is one.

Such a set can be numerous“ Anti investment” How should an industry with unique characteristics develop.

"Naturally, strong support from policies is indispensable. Only by providing sufficient support to the industry and social capital at the national level can investment enthusiasm be stimulated, and the most basic"; Money” The problem.

Secondly, the collaboration between the upstream and downstream of the domestic photoresist industry needs to be strengthened. In Japan, where the photoresist industry is more mature, in response to the highly specialized downstream demand, diverse material specifications, and multiple technological routes, a number of enterprises have formed an industrial cluster with a high degree of division of labor and collaboration. Taking the upstream material photoresist resin as an example, Comprehensive Research Chemical focuses on PCB photoresist monomer, Osaka Gas Chemical, and other companies focus on panel photoresist resin, while Marushan Petrochemical, Sumitomo Bakelite, and other companies are responsible for the manufacturing of photoresist resin. Photoinitiators also follow a similar development model. Domestic enterprises operate with a narrow range of products.

In the field of upstream raw materials for photoresist, the market environment faced by domestic enterprises is very similar to that of photoresist products. In each specialized chemical field, domestic enterprises have a layout, but the distribution of enterprises is extremely uneven and the product coverage is relatively narrow.

In the field of PCB photoresist specific chemicals with relatively low technological content, the number of enterprises in various countries is relatively evenly distributed. In the field of panel display and semiconductor photoresist specific chemicals, especially in the semiconductor field, the number of enterprises is uneven due to low accumulation of key technologies, small production capacity, limited capital investment, and low brand awareness.

These well-known foreign enterprises are basically diversified and comprehensive chemical enterprises, covering multiple chemical businesses, such as Dow Chemical in the United States, Mitsubishi Chemical in Japan, Meiyuan Commercial in South Korea, and so on. They are not only involved in the field of special chemicals for photoresist, but also cover downstream photoresist products in their industrialization.

At present, it is difficult for Chinese enterprises to fully enter the semiconductor photoresist market, especially in the field of film forming polymers for KrF/ArF photoresist, which is basically monopolized by Japanese, American, and Korean enterprises. Even if there is a large-scale production and supply in China, it is still concentrated on linear phenolic resin for G-line/I-line photoresist and cyclic rubber products for double azide negative photoresist. For example, Shengquan is a company that manufactures phenolic resin, and its main application field is in the field of non electronic materials.

In the field of photoinitiators, Powerful New Materials has certain market competitiveness. Its main business is photoresist photoinitiators, with a production capacity of nearly 1600 tons/year for photoresist photoinitiators only.

In the monomer field, Wanrun Co., Ltd. (ArF/KrF adhesive monomer), Ruilian New Materials, Bokang Information (ArF adhesive monomer), and Microcore New Materials (KrF adhesive monomer) have been put into production, but the volume is not large. Recently, Bokang Information completed a strategic financing of 580 million yuan to build an annual production of 1100 tons of photolithographic materials and 10000 tons of electronic grade solvents.

In the solvent field, the monopoly phenomenon of foreign companies is relatively not so severe. In China, Jiangsu Hualun, Jiangsu Tianyin Chemical, Baichuan Shares, and Yida Shares all have large-scale production of electronic grade propylene glycol methyl ether acetate.

 

 

 

 

 

 

 

 

 

 

Summary of Key Global Photoresist Specialty Chemicals Enterprises (Source: TrendBank).

Target of the semiconductor photoresist industry chain:.

 

 

Target of the panel photoresist industry chain:.

 

 

Although from the perspective of gross profit margin, the disadvantages of China's photoresist enterprises are not obvious, from the perspective of revenue volume, the revenue volume of JSR, TOK, and Xinyue Chemical's semiconductor materials related business segments (Digital Solutions, Material business, and Electronics and Functional Materials) in 2019 reached 9.3, 6.3, and 14.4 billion yuan, respectively (Xinyue Chemical's business segment includes a wide range of products, and the proportion of photoresist is expected to be relatively low), while Jingrui Shares and Hengkun Shares were only 79 and 110 million yuan, with a volume difference of nearly two orders of magnitude compared to Japanese enterprises.

 

 

From the perspective of research and development expenditure, the proportion of research and development investment in operating revenue of domestic photoresist related listed companies does not significantly lag behind that of Japanese leading enterprises, but from the absolute value of research and development investment, there is a gap of 1-2 orders of magnitude between domestic enterprises and Japanese leading enterprises. From the perspective of industry status, company size, technical strength, and research and development investment, domestic photoresist enterprises have a long way to go in catching up with Japanese leading enterprises.

 

 

 

 

Merger and acquisition sorting.

During the development of the photoresist industry, a large number of companies have undergone mergers and acquisitions. During the 1970s-1980s, photoresist manufacturers in Europe and the United States were mainly dominant. By the 1990s, Japanese photoresist manufacturers TOK and JSR gradually entered the first tier.

Kodak, an established photoresist manufacturer, sold its photoresist business to Union Carbide Corporation in 1987, completely divesting the photoresist business. Dow Chemical Co. acquired Union Carbide Corporation in 1999, consolidating its position as one of the world's largest chemical companies. After the merger and division of Dow Chemical Co. and Du Pont in the later stage, the photoresist part is now in the charge of a department of Du Pont.

Hunt originally conducted the photoresist business as a subsidiary of Olin Corporation. In 1989, Olin sold the photochemical portion of Hunt, which was later renamed Fuji Hunt Photographic Chemicals, Inc, Became a subsidiary of Fuji Film.

In 2003, Shipley Company LLC sold its dry film photoresist business to Changxing Chemical in Taiwan, which will produce a dry film photoresist product line under the name Eternal. Shipley will distribute the entire Eternal dry film photoresist product line to existing customers in North America, Europe, and Asia.

Rohm And Haas was acquired by Dow Chemical Co. in 2009, becoming a key element of Dow Chemical's advanced materials division, which will be responsible for the electronic materials business, including photoresists.

The established photoresist manufacturer AZ Electronic Materials was acquired by Merck KGaA in 2014 and later renamed EMD Performance Materials, continuing to be responsible for the production and development of photoresist materials.

 

 

 

 

 

 

 

 

A-share main board listed companies.

Shanghai Xinyang.

The company is mainly engaged in fluorocarbon coatings and electronic chemicals. In 2019 and the first quarter of 2020, the company achieved revenue of 691 million yuan and 115 million yuan, with year-on-year growth of 20% and - 6% respectively; The net profit attributable to the parent company was 210 million yuan and 10 million yuan, with year-on-year growth of 3060% and 59% respectively.

The company's net profit in 2019 increased significantly compared to 2018 due to two main reasons: First, the company replaced its 26.06% stake in Shanghai Xinsheng with 7.51% stake in Silicon Industry Group and the investment income measured at fair value of the remaining shares, which increased the company's net profit; The second is that during the reporting period, the company made an impairment provision for the goodwill formed during the 2013 asset restructuring of the wholly-owned subsidiary Corpler. The above two factors offset and increased the company's net profit by 188 million yuan. In the first quarter of 2020, the company's operating income declined compared with the same period last year, mainly due to the impact of the COVID-19, and the operating income of the coating business declined significantly. Net profit increased significantly compared to the same period last year, mainly due to the significant growth in the company's key process chemical materials business for integrated circuit manufacturing.

 

 

Source: Wind, CSCI.

At the end of 2016, the company initiated a project to develop high-end photoresist for integrated circuit manufacturing. Currently, it has made significant breakthroughs in high-end photoresist fields such as ArF dry process, KrF thick film adhesive, and i-line for integrated circuit manufacturing. At the same time, we actively layout business areas such as semiconductor silicon wafers, semiconductor wet process equipment, and photoresists for flat panel liquid crystal displays. The company is building a capacity of 5000 gallons of 193nm dry photoresist and supporting materials, as well as 500 tons of chip high-resolution photoresist series products.

The company raised 160 million yuan from its non-public offering to invest in the newly established Core Engraving Microenterprise; 193nm (ArF) dry process photoresist R&D and industrialization project”. By 2019, the company had invested 68.8628 million yuan in the total funds raised for photoresist projects. A wholly-owned subsidiary of Core Engraving Micro, it is mainly engaged in the research, development and sales of photoresists. As of 2019, Core Engraving Micro has not generated revenue. In addition, the company has a stake in Boyan Electronics, which is mainly engaged in the development, production and sales of photoresist products for the flat panel display industry.

 

 

In terms of lithography machines, in December 2019, the company stated on the interactive platform that KrF lithography machines had been installed and commissioned in the factory, and ArF lithography machines were expected to arrive by the end of December. The company reported in the 2019 half year that the project under construction included a lithography machine with a budget of 110 million yuan, but by 2019, the project was not listed in the project under construction.

Nanda Optoelectronics.

The company's main business is organic metal compounds (including MO sources, etc.), special gases, etc. In 2019 and the first quarter of 2020, the company achieved revenue of 321 million yuan and 119 million yuan, with year-on-year growth of 41% and 55% respectively; The net profit attributable to the parent company was RMB 55 million and RMB 03.5 billion, respectively, with a year-on-year increase of 7% and 124%.

 

 

As early as 2015, Nanda Optoelectronics took a stake in Beijing Kehua and announced that the two sides would jointly carry out research and product development on 193 nm photoresist. Nanda Optoelectronics contributed 42.72 million yuan to acquire 14.24% of the shares, and increased its capital by 80 million yuan, holding a total of 31.39% of the shares. The purpose of the capital increase is twofold: one is to supplement Beijing Kehua's operating capital to support its development of the high-end photoresist (248 nm photoresist for integrated circuits and other products) market; The other part is based on the technology and product advantages of Beijing Kehua. On the basis of the current 455 tons of annual production capacity of the company, a new production line has been selected and established, adding 1720 tons of annual production capacity of photoresist and supporting reagents. In June 2019, Nanda Optoelectronics proposed to transfer all the equity held by the company in Beijing Kehua. As of April 21, 2020, it still holds 9.18% of the equity of Beijing Kehua.

The 193nm photoresist project that the company is independently developing and industrializing has been awarded the National 02 Special Project“ 193nm photoresist and supporting materials key technology development project” And“ ArF photoresist development and industrialization project” The project was officially approved by the government, and has received a total of 167 million yuan from the central government and 133 million yuan from local government subsidies.

The company has established an independent research and development team including senior photoresist professionals, built a 1500 square meter research and development center and a 100 upgrade photoresist pilot production line. The product research and development progress and achievements have been recognized by industry experts. Currently“ 193nm photoresist and supporting materials key technology development project” The research and development work of has been completed and is under acceptance. The company has established a photoresist business unit and is fully promoted by its subsidiary Ningbo Nanda Optoelectronics Co., Ltd; ArF photoresist development and industrialization project” The implementation of. In 2019, the project completed environmental and safety assessments, and the infrastructure construction was carried out as planned; A 193nm photoresist production line has been installed and is currently in the debugging stage. The company also independently develops high purity raw materials for the preparation of photoresist, and has developed photoresist products that are undergoing customer evaluation.

In April 2020, the 193nm lithography machine purchased by the company completed customs clearance and was shipped to the workshop of Ningbo Nanda Optoelectronic Materials Co., Ltd. It is estimated that installation and commissioning will take 4-5 months.

 

 

Jingrui Shares.

The company's leading products include ultra-clean and high-purity reagents, photoresists, functional materials, lithium battery materials, and basic chemical materials, which are widely used in industries such as semiconductors, lithium batteries, LEDs, flat panel displays, and photovoltaic solar cells. In 2019 and the first quarter of 2020, the company achieved revenue of 756 and 171 million yuan, with year-on-year growth of - 7% and - 11% respectively; The net profit attributable to the parent company was 31 million yuan and 400 million yuan respectively, with a year-on-year increase of - 38% and - 26% respectively. The decline in performance in 2019 was mainly due to the decline in market demand, market competition and depreciation. Affected by the COVID-19, the company's resumption of work was delayed. Due to the delay in the resumption of work of some customers, shrinking downstream demand and logistics obstacles, the company's operating revenue in the first quarter declined, and the net profit attributable to the parent company declined year-on-year.

 

 

 

 

The company's photoresist business is mainly undertaken by its subsidiary Suzhou Ruihong. Suzhou Ruihong has been producing photoresist on a large scale for nearly 30 years, and has undertaken and completed the 02 major national science and technology projects and major special projects; Development and industrialization of i-line photoresist products” Project. The company's high-end products such as UV negative photoresist, broad-spectrum positive photoresist, and some g-line photoresists have been supplied to the market on a large scale for decades. In recent years, i-line photoresist has been supplied to domestic head chip companies, and high-end KrF (248 nm) photoresist is in the pilot stage.

The company's i-line photoresist products have obtained supply orders from domestic enterprises such as Yangjie Technology and Fushun Microelectronics, and have been tested in well-known semiconductor factories such as Shilan Microelectronics, Jilin Huawei, and Shenzhen Founder. RZJ-325 series photoresist and high adhesion photoresist RFJ-210G have obtained supply orders from domestic industry leading enterprises such as Jing'an Photoelectronics, Shuijing Photoelectronics, Yangjie Technology, and Anxin Semiconductor; At the same time, TFT-Array photoresist products, thick film photoresist RZJ-T3520, and other photoresist products will gradually be introduced to the market, obtaining expanded orders from some customers. The company also produces color photoresists from Mitsubishi Chemical on a contract basis.

 

 

Jacques Technology.

The company mainly engages in the research and development and production of electronic semiconductor materials, cryogenic composite materials, and plastic auxiliary materials. The electronic materials sector mainly includes metal organic precursors, special gases, photoresists, and silicon powder.

The company's layout of photoresist was achieved through epitaxial mergers and acquisitions. On February 26, 2020, the company announced the acquisition of LG Chemical Color Photoresist related assets for 58 billion won, equivalent to about 330 million yuan. In 2018, LG Chemical Color Photoresist accounted for about 14% of the global market. In addition, the company invested in Boyan Investment in January 2019, which was renamed Ketemei in September 2019, and its operating entity was Korean TFT Orthoresist company COTEM. The company was established in 2005 as a joint venture between Japan and South Korea, with Tokyo Yinghua initially holding 30% of its shares. Subsequently, Boyan Investment successively acquired 16.67% of its shares and Tokyo Yinghua holding 30% of its shares, and subsequently changed its name to Cotemey.

The company acquired LG Chemical Color Adhesive business, and held a stake in Ketemei Layout TFT positive adhesive, achieving a collaborative layout in the field of panel photoresist.

 

 

Strong new material.

The company mainly provides photoresist manufacturers with photoinitiators (including photosensitive agents, photoacid generating agents), photoresist resins, and other products. The company is a major supplier of PCB photoresist materials worldwide, occupying a leading market position. The company has a production capacity of 1300 tons/year of photoinitiators and 2000 tons/year of photoresist resins. With the continuous production of fund-raising projects, the company's total production capacity of photoinitiators will increase to 1535 tons/year, and the production capacity of photoresist resins will increase to 6760 tons/year. The company's main customers include Changxing Chemical, Asahi Chemical, Hitachi Chemical, Sumitomo Chemical, JSR, TOK, Mitsubishi Chemical, LG Chemical, Samsung SDI, and so on.

The company achieved revenue of 864 and 178 million yuan in 2019 and the first quarter of 2020, with year-on-year growth of 17% and - 3%; The net profit attributable to the parent company was RMB 151.26 billion, with a year-on-year increase of 3% and 21%.

 

 

Capacitative photosensitivity.

The company's main business is the research, development, production, and sales of electronic chemicals such as PCB photosensitive inks, photoresists, and supporting chemicals, and special inks. The company's photoresist products mainly include two categories of UV positive adhesives and UV negative adhesives, as well as supporting chemicals such as diluents, developers, and stripping fluids, which are mainly used in the fields of flat panel displays, light emitting diodes, and integrated circuits. In the first quarter of 2019 and 2020, the company achieved revenue of 455 million yuan and 94 million yuan, with year-on-year growth of 8% and - 8% respectively; The net profit attributable to the parent company was RMB 38 million and RMB 08 million, with a year-on-year increase of - 10% and - 16% respectively.

 

 

Currently, the company has launched mid to low end photoresist products that can meet the needs of customers, but the development of mid to high end photoresist products still faces challenges. The color photoresist for 3D curved glass developed by the company has been developed and mass produced; The company has completed the pilot test and mass production of a high resolution positive photoresist and supporting development aids for the production of touch screen sensors, and has continuously obtained customer batch orders. Based on this, it is developing upgraded products with higher resolution, completing the laboratory research and development of a product, waiting for customer testing and verification.

Currently, the relevant production equipment for the photoresist material and its supporting chemicals project is being installed and debugged, striving to reach the usable state in the Daya Bay factory by March 31, 2020. The project products include 400 tons of positive photoresist, 400 tons of negative photoresist, and 200 tons of supporting materials. With the smooth production of photoresist products in the new factory, the problem of insufficient production capacity of photoresist products will be effectively resolved.

Yongtai Technology.

The company is mainly engaged in fluorine containing fine chemicals and has a layout of flat panel display color filter film material (CF photoresist). In 2014, the company raised 160 million yuan through a non-public offering of shares for the industrialization project of flat panel display color filter film material (CF) with an annual output of 1500 tons. The project is under the responsibility of Yongtai New Materials, a subsidiary. In 2016, a pilot production line of 150 tons of CF photoresist was built, and sample testing has been provided to multiple flat panel display manufacturers, and has passed the certification of Huaxing Optoelectronics. The project passed the completion acceptance in 2018. The company is actively negotiating cooperation with downstream customers, but has not yet been supplied.

 

 

In the first quarter of 2019 and 2020, the company achieved revenue of 3.430 billion yuan and 5.08 billion yuan respectively, with year-on-year growth of 4% and - 31% respectively; The net profit attributable to the parent company was RMB 272 million and RMB 59 million, with year-on-year growth of - 38% and - 47% respectively. The slowdown in the growth of the company's revenue in 2019 was mainly affected by safety and environmental protection production inspections, while the decline in net profit attributable to the parent company was mainly due to the loss of significant impact on Fuxiang Shares.

 

 

New Third Board and non listed companies.

Beijing Kehua.

Founded in 2004, Beijing Kehua is a Sino-foreign joint venture integrating photoresist research and development, production, testing, and sales. It is also a high-tech enterprise in China that has independent intellectual property rights in the field of photoresist. Its main products are photoresists and associated reagents (diluents, edge removers, developer, and stripping fluids). After ten years of product research and development, Beijing Kehua has successively developed a series of high-end photoresist products (including 248nm, I-line, G-line photoresist, etc.). On the basis of achieving industrial applications, there are also a large number of products that are either in the testing stage of customers or in the testing preparation stage of customers (currently testing domestic high-end photoresists). The only manufacturer of photoresist is Beijing Kehua Relevant customers include domestic integrated circuit leading enterprises such as SMIC International, China Resources Shanghua, and Wuhan Xinxin.

 

 

In 2018, the company achieved a revenue of 79 million yuan, an increase of 8.5% year-on-year; The net profit attributable to the parent company was 10 million yuan, a year-on-year increase of 1627%. The company was established in August 2004. In 2005, it completed a production line of 100 tons of cyclized rubber based UV negative photoresist and 1000 tons of negative photoresist supporting reagents, and the first batch of photoresist production lines were completed; In December 2012, relying on the National Science and Technology Major Special Project&mdash& mdash; Research and development and industrialization of 248 nm photoresist Kehua has established a 248 nm photoresist production line. In 2015, Nanda Optoelectronics acquired a stake in Beijing Kehua. Based on the current 455 tons of annual output of the company, it is planned to establish a new factory site, add 1720 tons of photoresist and supporting reagents per year, and reach production by early 2017. In June 2019, at the request of the major shareholder of Beijing Kehua, Nanda Optoelectronics transferred its 31.39% stake in Beijing Kehua, which still holds 9.17% of the shares to date.

 

 

Hengkun Shares.

The company was founded in 2004 and was listed on the New Third Board in 2015. Its main businesses include OCA optical adhesives, explosion-proof films, protective films, backlight source films, graphite sheets, thermal conductive silicone, foam rubber, and other products, as well as mobile phones and various types of window lens products such as window inscriptions.

In October 2016, the company reached a strategic cooperation intention with South Korea's Jinhu Chemical Industry and began to set foot in the field of semiconductor materials; In 2017, we signed a cooperation agreement with S Company, adopting the model of first marketizing the import trade, then introducing technology localization to build a factory in the planning of the semiconductor material TEOS project. In June 2017, we realized the mass production and supply of TEOS, and then in January 2018, we realized the mass supply of photoresist. In September 2018, the company announced that KrF adhesive received orders from well-known domestic storage manufacturers.

 

 

 

 

Boyan Electronics.

Jiangsu Boyan Electronic Technology Co., Ltd. was established in July 2014, located in Xushe Industrial Concentration Zone, Yixing City, Jiangsu Province, with a registered capital of 160 million yuan. The company's main products are black photoresist (BM), color photoresist (RGB), PS, and positive photoresist. Currently, there are 100 employees, with research and development personnel accounting for 40% of the total number of the company, including 23 with master's degree or above, 4 experts from Japan and South Korea, and 2 experts from Taiwan.

The company has completed the development and pilot test of black photoresist (BM), achieved stable production, and has a supply capacity of 100 kilograms. Its main technical indicators have reached or even exceeded the current international level of similar products, and the overall technology has reached international advanced level. In November 2015, the company accepted the environmental impact assessment of the 2500 ton black photoresist project, and completed partial completion acceptance in February 2018, with an acceptance capacity of 625 tons/year.

 

 

Beixu Electronics.

Formerly known as Beijing Asahi Electronic Glass Co., Ltd., jointly founded by BOE Technology Group Co., Ltd., Asahi Co., Ltd., Marubeni Co., Ltd., and Gongrong Commercial Co., Ltd., with a registered capital of 8.6 million US dollars. The company officially opened on January 1, 1994.

In December 2003, the company established its Beijing headquarters and Tianjin factory. In the same month, the company's Tianjin factory was officially put into production and successfully reached production capacity. The company utilizes its own technological advantages and is committed to the development of inorganic material powders, pastes, and subsequent application products. Since 2007, a series of new products have been developed, including LTCC ceramics, low melting point sealing glass powder, color film photoresist for TFT-LCD, and have gradually begun to be put on the market. In October 2008, BOE acquired all the shares of Japan, becoming a wholly-owned subsidiary of BOE, and changed its name to Beijing Beixu Electronic Glass Co., Ltd.

In 2019, the company plans to invest 500 million yuan in Gedian, covering an area of 100 mu, and mainly produce products such as TFT-LCD photoresist, semiconductor photoresist, PI liquid, and organic insulating film. The project will be constructed in two phases. The first phase will relocate the overall production line for TFT-LCD photoresist with an annual output of 3000 tons, while expanding the production scale to achieve an annual output of 5000 tons; The second phase mainly involves the construction of semiconductor photoresist production lines, PI liquid, and organic insulating film production lines.

 

 

Xin Yihua.

SINEVA is a high-tech company that provides solutions and professional services for intelligent manufacturing, information interaction, and convenient human life. Founded in May 2013, the company was led by the China Optoelectronics and Innovation Technology Industry Fund. After more than five years of development, its main business has covered four major fields: intelligent machines, advanced materials, artificial intelligence, and aircraft, and a number of products have filled the domestic gap, In 2018, sales exceeded 2 billion yuan.

The company's operation and R&D headquarters are located in Beijing, with R&D and production bases in Hefei, Anhui, Fuyang, and Haining, Zhejiang. It has established independent subsidiaries in Rizhao, Zaozhuang, Hebei, Shijiazhuang, and Hohhot, Inner Mongolia.

The company has four business groups under its jurisdiction, including intelligent machines, advanced materials, artificial intelligence, and aircraft. The advanced materials business group is mainly engaged in the research and development, production, sales, and services of liquid crystal monomers, intermediates, color photoresists, OLEDs, and other display materials, as well as pharmaceutical and cutting-edge materials. The company's advanced materials business group is mainly undertaken by the Fuyang subsidiary (also known as the Materials Company).

According to CINNO Research, the R&D team of Xinyihua has been exploring the field of photoresist since 2006, and in 2014, the first batch of photoresist was shipped. The company currently has the ability to produce more than 3000 tons of photoresist annually, and is the first enterprise in China that can achieve large-scale mass production and shipment of photoresist.

Zhongdian Rainbow.

The company is a joint venture between China Electronics and Rainbow Group, and is one of the main panel manufacturers in China. On May 16, 2017, Caihong officially signed a contract with Merck to invest 58 million yuan in the construction of a rainbow positive photoresist project. After more than a year of efforts, the project completed equipment commissioning and trial production on June 30, 2018, and was officially put into production on July 17. After the project is put into production, it can produce 1800 tons of liquid crystal positive photoresist annually, ranking second in China in terms of production capacity.

Merck of Germany is the global leader in TFT positive adhesives. Its TFT adhesive history can be traced back to the birth of g-line/i-line adhesives (detailed introduction is provided in one of the series of reports). There is no doubt about its technical strength and market position.

Solvent.

The highest proportion of photoresist components is actually solvent, which usually accounts for over 80%, while high-end semiconductor photoresists account for over 90%. All types of photoresist solvents are basically propylene glycol methyl ether acetate, which is abbreviated as PGMEA overseas and PMA domestically. Based on the global demand for semiconductors and panel photoresists, we have calculated the global demand for medium and high-end photoresist (panel+semiconductor photoresist) solvents. The total demand for solvents for semiconductors and panel photoresists is around 40000 to 50000 tons, with panel adhesives accounting for over 80% of the market and semiconductor adhesives accounting for less than 20%. Inside the panel glue, the proportion of TFT glue solvent and color glue+black glue solvent is about 40% respectively.

 

 

Among domestic PGMEA suppliers, listed companies mainly include Yida Shares and Baichuan Shares, both of which have a production capacity of 55000 tons and 50000 tons, respectively. There is currently no public data on the detailed production capacity of electronic grade PGMEA, but in China, only Yida Shares and Dana Tianyin each have a production capacity of 10000 tons.

 

 

Yida Shares.

The company was founded in 1996 and listed on the Growth Enterprise Market in November 2017. It mainly engages in alcohol ether and alcohol ether ester organic chemical products. In recent years, the company's performance has continued to decline, mainly due to the decline in product prices and sales, as well as the impact of upstream raw materials such as ethylene oxide and propylene oxide supply and price fluctuations. The company's products are mainly divided into ether series and acetate series products, and the ether series products mainly include propylene glycol ether and ethylene glycol ether; The acetate series products are mainly acetate of ether series products.

The company has the production capacity of electronic grade propylene glycol methyl ether and acetate, and 14 products such as electronic grade propylene glycol methyl ether and methyl ether acetate, and electronic grade propylene glycol methyl ether have been recognized as provincial high-tech products by Jiangsu Provincial Department of Science and Technology. In the first half of 2017, the company's largest customer was Dongjin Shimiken, South Korea.

 

 

Baichuan Shares.

The company was founded in 2002 and listed on the small and medium-sized board in 2010. The main products include fine chemical products such as butyl acetate, ethyl acetate, propyl acetate, trimellitic anhydride, trioctyl trimellitate, trimethylolpropane, propylene glycol methyl ether, propylene glycol methyl ether acetate, etc. The products are widely used in various industries such as coatings, inks, adhesives, cleaning agents, and chemical intermediates.

The company is a leading enterprise with scale advantages in the production of butyl acetate and trimellitic anhydride. The company has become a stable raw material supplier and partner for many of the world's top 500 coating companies, such as Akzo Nobel, PPG Industrial Group, BASF, Nippon, Costron, Kao, LG, and so on.

According to the company's announcement, the company's PM (Propylene Glycol Methyl Ether) and PMA (Propylene Glycol Methyl Ether Acetate) quality indicators have fully met the requirements for electronic grade product quality indicators. However, as of February 2020, the company has not cooperated with photoresist related manufacturers. In 2020, it will increase the promotion of electronic grade product application fields and improve the profitability of the product.