Investment Rating - The report maintains a positive investment outlook on the semiconductor photomask industry, emphasizing the importance of domestic production capabilities for photomasks in China [5]. Core Insights - Photomasks are critical materials in semiconductor manufacturing, with a significant market share and high technical barriers. The domestic production of photomasks is essential for achieving self-sufficiency in the semiconductor supply chain [1][9]. - The global photomask market is projected to reach $6.079 billion by 2025, with a growth rate of 7%. The Chinese mainland photomask market has seen rapid growth, increasing from $912 million in 2017 to $1.556 billion in 2022, with a compound annual growth rate (CAGR) of 11.3% [2][37]. - The blank photomask is a core component of semiconductor photomasks, with a projected global market size of approximately $1.8 billion in 2024, and the Chinese market size estimated at around $400 million [3][77]. Summary by Sections Section 1: Photomask Localization - Photomasks are essential semiconductor materials with high technical barriers, and their localization is crucial for the self-sufficiency of the semiconductor industry [1.1][1.2]. - The semiconductor photomask market is expected to recover, with a projected size of $6.079 billion by 2025, driven by advancements in semiconductor processes [2][33]. Section 2: Blank Photomask as Core Material - Blank photomasks are fundamental to photomask production, with their quality directly impacting the performance of photomasks [3.1][3.2]. - The production of blank photomasks faces significant technical challenges, and the market is currently dominated by Japanese manufacturers [2.3][2.4]. Section 3: Investment Recommendations - The report suggests focusing on companies like Juhe Materials, Longtu Photomask, and others that are actively working on domestic photomask production and acquisition strategies [3.1][3.2]. - The acquisition of SK Enpulse by Juhe Materials is highlighted as a strategic move to enhance domestic capabilities in blank photomask production [80][81].