Orient: Upgrade of advanced process-driven photoresist products, with a focus on the pace of importing ArF resists.

Orient released a research report stating that according to Frost & Sullivan data, the domestic semiconductor photoresist market size will reach 15.03 billion yuan by 2028, with high market shares of Japanese giants such as JSR, TOK, and Shin-Etsu Chemical in the high-end market. As the process matures towards advanced iterations, multiple exposure technologies increase the usage of photoresists. According to TECHCET statistics, currently ArF photoresists (including immersion) account for close to 50% of the global semiconductor photoresist market value. In terms of localization rate, domestic G-line/I-line photoresists have achieved a high self-sufficiency rate, KrF is in the importation phase, while the localization rate of ArF photoresists is extremely low. Key points from Orient include: - Photoresists are a high entry barrier segment in semiconductor materials, with a long validation period in wafer fab - Photoresists are used in the wafer lithography process, which is a critical photosensitive material for transferring circuit patterns onto silicon wafers. According to Frost & Sullivan data, the domestic semiconductor photoresist market size will reach 15.03 billion yuan by 2028, with high market shares of Japanese giants such as JSR, TOK, and Shin-Etsu Chemical in the high-end market. The R&D challenge lies in precise polymerization and structural design, which must simultaneously meet high resolution, sensitivity, etch resistance, and low defects. Due to the close relationship between photoresist performance and quality and chip yield and reliability, wafer fabs are cautious in their validation. - In terms of importation pace, the validation of a photoresist in a wafer fab usually goes through strict four major processes: PRS (photoresist performance test), STR (small trial), MSTR (volume validation), and Release (through validation), with a long validation period. - Advanced processes drive product upgrades, with a focus on the pace of ArF photoresist importation According to different exposure wavelengths, photoresists are mainly divided into G-line (436nm), I-line (365nm), KrF (248nm), ArF (193nm), and EUV (13.5nm) photoresists. As the process matures towards advanced iterations, multiple exposure technologies increase the usage of photoresists. According to TECHCET statistics, currently ArF photoresists (including immersion) account for close to 50% of the global semiconductor photoresist market value. In terms of localization rate, domestic G-line/I-line photoresists have achieved a high self-sufficiency rate, KrF is in the importation phase, while the localization rate of ArF photoresists is extremely low. - In terms of progress, Hubei Dinglong's ArF and KrF photoresists have had three products enter the stable batch supply stage, with over 12 products entering gallon sample testing, and its Phase II 300-ton production line for KrF/ArF high-end wafer lithography photoresists has been completed; Red Avenue New Materials Group ArF photoresists, KrF photoresists, etc., have successively passed validation by multiple domestic customers and have started to gradually achieve commercial production; Shanghai Sinyang Semiconductor Materials has completed a complete R&D synthesis platform including I-line, KrF, ArF dry, and ArF immersion photoresists, with sales orders already in place for ArF immersion photoresists. - Resins determine core performance, upstream material autonomy and controllability are urgent Photoresists are formulation chemical products, with main components including film-forming resins, photo initiators, solvents, and additives. Among them, film-forming resins account for the highest quality proportion, determining the bottom layer of physical and chemical properties such as resolution, etch resistance, and adhesion of photoresists. Currently, the suppliers of core materials such as resins, monomers, photoacid generators, and quenchers for KrF/ArF photoresists are mostly Japanese enterprises. If upstream resins are cut off, downstream photoresist formulation plants will face production difficulties, so the importance of autonomous and controllable resin materials is no less than that of finished photoresists. - Currently, domestic companies are accelerating their iteration towards the upstream of the industrial chain, with Jinan Shengquan Group Share Holding's G-line/I-line photoresists using phenol-formaldehyde resin already in commercial production, while KrF photoresists using PHS resin and other products are in the market importation stage; Beijing Bayi Space Lcd Technology Co.,Ltd. has successfully built a 100-ton level semiconductor KrF photoresist resin high automation flexible/production dual line and has started production; Red Avenue New Materials Group has successfully used self-developed resins in some photoresist products and has achieved commercial use. Targets Relevant targets with fast importation pace at the customer end for photoresists are: Hubei Dinglong (300054.SZ), Red Avenue New Materials Group (603650.SH), Shanghai Sinyang Semiconductor Materials (300236.SZ), Xiamen Hengkun New Materials Technology (688727.SH), Jiangsu Nata Opto-electronic Material (300346.SZ), HMT (Xiamen) New Technical Materiasls Co.,Ltd (603306.SH), Crystal Clear Electronic Material (300655.SZ), Jiangsu Yoke Technology (002409.SZ), JiangSu Aisen Semiconductor Material (688720.SH). Risk Warning Market demand falls short of expectations, industry competition intensifies, and R&D progress lags behind expectations.