Market Overview - The global photoresist market exceeded $10 billion in 2022, with China's market nearing 10 billion RMB. It is projected to reach $12.6 billion globally and 15.2 billion RMB in China by 2026 [6][8]. - China's photoresist production capacity is primarily focused on lower-end products, particularly PCB photoresists [6]. Market Growth and Trends - The global photoresist market is expected to grow at a CAGR of approximately 12% from 2017 to 2026, while China's market is projected to grow at a CAGR of around 22% during the same period [7][8]. - The demand for photoresists is driven by the expansion of wafer fabs and the rise of AI technologies, which require advanced processing and higher precision in photoresist applications [11][12]. Industry Drivers - The push for domestic substitution in China is urgent due to geopolitical tensions and supply chain security concerns, particularly in high-end photoresist products [11][13]. - The rapid growth of AI and the expansion of wafer fabrication plants are significantly increasing the demand for photoresists, as they are critical materials in semiconductor manufacturing [11][12]. Industry Barriers - The photoresist industry faces high barriers to entry, including stringent customer validation processes, reliance on proprietary formulations, and dependence on imported raw materials and equipment [16][18]. - The production of high-end photoresists is limited by the monopolistic supply of advanced lithography machines, particularly EUV machines, which are primarily supplied by ASML [18][19]. Application Segmentation - The photoresist market is segmented into various applications, including PCB, LCD, and semiconductor photoresists, with each category having its specific subtypes [26][27]. - The demand for different types of photoresists varies based on their application, with semiconductor photoresists requiring the highest technical specifications and barriers [27][54]. Domestic Production and Substitution - The domestic production of photoresists in China is gradually increasing, with local companies capturing around 50% of the wet film photoresist and solder mask markets [36][34]. - Despite the high domestic production rate for PCB photoresists, the market for dry film photoresists remains heavily reliant on imports, dominated by Japanese companies [36][34]. Company Insights - Companies like Rongda Photoresist are leading in the PCB photoresist market, with a complete product range and strong customer relationships [41][42]. - Tongcheng New Materials has become the largest domestic supplier of display panel photoresists, achieving significant market share through strategic acquisitions and product innovations [59].

Core Viewpoint - The global photoresist market is steadily growing, with the market size expected to reach $12.6 billion by 2026, while China's market is projected to reach 15.2 billion RMB [6][7][8]. Market Size and Growth - In 2022, the global photoresist market surpassed $10 billion, and China's market size was nearly 10 billion RMB [6]. - The global photoresist market is forecasted to grow at a CAGR of approximately 12% from 2022 to 2026 [7]. - China's photoresist market is expected to grow at a CAGR of around 22% during the same period [8]. Product Structure and Applications - China's photoresist production capacity is concentrated in lower-end products, particularly PCB photoresists [6]. - The downstream applications of photoresists in China include display panels (43.1%), semiconductor (16.1%), and others [10]. Industry Drivers - The demand for photoresists is driven by the expansion of wafer fabs, the rise of AI technologies, and the need for domestic substitution due to supply chain security concerns amid US-China trade tensions [11][12]. - The rapid growth of AI and the expansion of wafer fabs are expected to significantly increase the demand for advanced photoresists [11]. Policy Support - Policies are focused on promoting domestic production of photoresists and reducing reliance on imports, especially in high-end segments [13][14]. - Various government initiatives have been introduced to support the development of key materials, including tax incentives for companies involved in photoresist production [15]. Industry Barriers - The photoresist industry faces significant barriers, including long product validation cycles, reliance on proprietary technologies, and dependence on imported raw materials and equipment [16][17]. - The production of high-end photoresists is particularly challenging due to stringent customer certification requirements and the complexity of manufacturing processes [18]. Domestic Production and Market Share - Domestic companies are gradually increasing their market share in the photoresist sector, with some achieving significant penetration in the PCB and solder mask markets [34][36]. - Major domestic players include Rongda Photoresist, which has established a strong presence in the PCB photoresist market [41][42]. Future Trends - The photoresist market is expected to continue evolving with advancements in technology and increasing domestic production capabilities [24][33]. - The shift towards higher-end applications and the need for more sophisticated photoresist materials will drive innovation and competition in the industry [12][56].