Summary of Semiconductor Etching Liquid Technology and Market Development Industry Overview - The report focuses on the semiconductor etching liquid industry, particularly the wet etching technology and its market dynamics [1][2][3]. Key Points and Arguments - **Cost Advantage of Wet Etching**: Wet etching has a significant cost advantage, costing only 1/5 to 1/10 of dry etching, making it increasingly adopted in advanced processes of 7nm and below, enhancing production efficiency and economic benefits for semiconductor manufacturing [1][3]. - **Domestic Manufacturers**: Key domestic semiconductor wet electronic chemical manufacturers include Jianghuai Micro, Glinda, and Jinrui, who are establishing a presence in the market through one-stop procurement, deepening the supply chain, and technology integration, with many seeking to go public [1][5]. - **High Standards for Wet Electronic Chemicals**: The semiconductor industry demands extremely high stability and purity for wet electronic chemicals, requiring impurity removal precision to reach parts per million (ppm) or even parts per billion (ppb), which increases R&D complexity [1][6]. - **Low Domestic Replacement Rate**: In the integrated circuit sector, particularly in processes below 28nm, the domestic replacement rate for wet electronic chemicals is relatively low, but due to high unit prices and strong profitability, it remains a focal point for market attention [1][7]. - **Global Market Dynamics**: The global electronic chemical market is dominated by traditional European and American companies, while Chinese mainland companies primarily compete in the panel or low-end semiconductor materials sectors but are gradually penetrating high-end fields [1][9]. Additional Important Insights - **Geographical Concentration of Wafer Plants**: Major wafer plants in mainland China are concentrated in economically developed regions such as the Yangtze River Delta, Chengdu-Chongqing Economic Belt, and Beijing, which supports the needs of capital and technology-intensive industries [4][14]. - **Government Support**: National policies are strongly supporting the integrated circuit industry through fiscal tax incentives and technical support, fostering development in the application sector and benefiting the entire industry [11]. - **Challenges in Supplier Replacement**: Wafer manufacturers face technical and process risks when replacing suppliers, necessitating a trust-building process that often involves initial single product provision and on-site guidance [29][34]. - **Emerging Technologies Impact**: New technologies like AI and big data are raising demands for higher computing power and complex functional integration in semiconductor packaging, necessitating advancements in manufacturing processes [19]. Market Trends - **Market Growth in High-End Processes**: The demand for high-end processes, particularly in 12-inch wafers and below 28nm, is rapidly increasing, with companies like SMIC and TSMC leading in capacity and order fulfillment [15][22]. - **Competition in Etching Liquid Market**: The etching liquid market is currently dominated by companies from Europe, Japan, and Taiwan, but local Chinese companies are emerging and gaining recognition in the capital market, with some poised for IPOs [20][23]. This summary encapsulates the critical aspects of the semiconductor etching liquid technology and market development, highlighting the industry's dynamics, challenges, and growth opportunities.