The semiconductor industry is developing along Moore’s law, and lithography is the cornerstone. The continuation of Moore’s law is inseparable from the progress of lithography technology. At present, the world’s top lithography process and mass production is TSMC’s 5nm process (2020), and the 3nm process is expected to be officially put into operation in 2022. On the mainland side, the most leading wafer foundry enterprise Semiconductor Manufacturing International Corporation(688981) has achieved a breakthrough in 7Nm process technology in 2021, but it still lags behind the world’s top level by about two generations of technology, and the corresponding technology R & D cycle is about 3-4 years.
Semiconductor photoresist is the core material for wafer manufacturing, and there is still a large technical gap in mainland products. Among all wafer manufacturing materials, semiconductor photoresist has the highest value content due to its complex and accurate composition requirements. Semiconductor photoresist products can be divided into g-line, i-line, KrF, ARF and EUV photoresist from low-end to high-end. The most high-end EUV photoresist is basically monopolized by Japanese and American enterprises. At present, the mainland has only realized the mass production of KrF photoresist, ARF photoresist products are still in the verification stage of downstream customers, and no actual mass production capacity has been formed, while the technical reserve of the most high-end EUV photoresist is almost blank.
Industry policy and “big fund” support help photoresist break through the “neck” technical barrier. The 14th five year plan puts forward the policy of “strengthening the national strategic scientific and technological force”, focusing on finding scientific problems from the list of “stuck neck” problems and major national needs. The development of integrated circuit industry has always been one of the “neck” problems in China. Among them, there is an obvious problem of “being controlled by others” in the field of semiconductor photoresist and other products. Breaking through these “neck” technical barriers will become one of the key points of practicing the macro strategy of “strengthening the national strategic scientific and technological force”. Since the State Council issued the outline for promoting the development of national integrated circuit industry in June 2014, the state has continuously provided support for the development of Chinese photoresist enterprises through policies, special scientific research funds, industrial funds and other forms.
The growth rate of foundry capacity in mainland China ranks first in the world, focusing on mature processes and promoting localization. According to SIA and BCG, the growth rate of foundry production in Chinese mainland will be ranked first in the world in the next 2021-2030 years. With the rapid expansion of wafer foundry capacity in mainland China, especially the rapid expansion of wafer foundry capacity in mature processes of 28nm and above, the demand for semiconductor materials such as photoresist in mainland market will increase day by day. The restrictions or embargoes on semiconductor materials imposed by Sino US trade frictions will speed up the introduction of China’s products that have achieved a breakthrough in mass production to Chinese wafer foundry manufacturers. At the same time, semiconductor photoresist enterprises are expected to form a positive feedback cycle after obtaining continuous orders. Relying on sustainable capital inflow, they will promote the capacity expansion of existing semiconductor photoresist products and the R & D of new generation semiconductor photoresist products.
Investment suggestions: we mainly recommend: (1) continue to promote the platform construction of electronic materials, layout the upstream photoresist resin raw materials, realize the mass production of KrF photoresist, and continue to move towards more high-end ARF photoresist Red Avenue New Materials Group Co.Ltd(603650) ; (2) At the same time, it also has semiconductor photoresist and G5 wet electronic chemicals business, and has Crystal Clear Electronic Material Co.Ltd(300655) of new energy material product line; (3) ARF photoresist has passed Jiangsu Nata Opto-Electronic Material Co.Ltd(300346) technical verification by customers; (4) Layout Tianjin Jiuri New Materials Co.Ltd(688199) of photosensitizer capacity of key raw materials of photoresist. It is recommended to pay attention to relevant companies in the semiconductor photoresist industry chain: Hmt(Xiamen)New Technical Materials Co.Ltd(603306) , Shanghai Sinyang Semiconductor Materials Co.Ltd(300236) , Jiangyin Jianghua Microelectronics Materials Co.Ltd(603078) , Xi’An Manareco New Materials Co.Ltd(688550) , Valiant Co.Ltd(002643) , Anshan Hifichem Co.Ltd(300758) , Jiangsu Baichuan High-Tech New Materials Co.Ltd(002455) , Jiangsu Yida Chemical Co.Ltd(300721) .
Risk analysis: Sino US trade friction, industry policy landing risk, product verification risk, technology R & D risk.
