Core Viewpoint - The critical material "photoresist" is predominantly controlled by Japanese companies, with 75.9% of the global market share, posing a significant risk to China's semiconductor industry if supply is disrupted [1][3][7]. Group 1: Market Control and Dependency - Japanese companies dominate the global photoresist market, with Tokyo Ohka Kogyo holding a 22.8% market share, followed by JSR, Sumitomo Chemical, and Shin-Etsu Chemical [7][13]. - The photoresist market is characterized by its high dependency on specific formulations and the inability to quickly substitute materials, making it a critical bottleneck for chip manufacturing [3][5][11]. Group 2: Supply Chain Vulnerability - Photoresist has a short shelf life of six months, making it impractical for stockpiling, which increases vulnerability to supply disruptions [1][11]. - The 2019 export restrictions imposed by Japan on key semiconductor materials, including photoresist, nearly crippled companies like Samsung and TSMC, highlighting the risks associated with reliance on Japanese suppliers [1][3][7]. Group 3: Technological and Strategic Implications - The advanced photoresist products are subject to strict export controls under the Wassenaar Arrangement, limiting China's access to essential materials for semiconductor manufacturing [7][13][15]. - Chinese companies are still in the early stages of developing competitive photoresist technologies, with significant gaps in high-end photoresist products, particularly in the EUV segment [15][19]. Group 4: Domestic Efforts and Future Outlook - Companies like Xiamen Hengkang New Materials are making strides in the photoresist market, with plans to invest in advanced materials and production capabilities [19][21]. - China's strategy is shifting from chasing EUV technology to establishing a foothold in mature processes, focusing on I-line and KrF photoresists before advancing to DUV and EUV technologies [21].