Core Viewpoint - SK Hynix is transforming its wafer cutting process to accommodate next-generation memory manufacturing, specifically the sixth-generation high bandwidth memory (HBM4) and NAND flash wafers with over 400 layers, as existing methods have reached their limits [2][3]. Group 1: Wafer Cutting Technology - SK Hynix plans to introduce femtosecond laser grooving and full cutting methods for HBM4 wafer cutting, moving away from traditional mechanical and stealth cutting techniques [2][3]. - The thickness of HBM4 wafers is expected to be around 20-30 micrometers, which poses challenges for existing cutting methods that are effective for thicker wafers [2][3]. - The adoption of femtosecond laser technology is anticipated to accelerate in the semiconductor industry, following similar moves by TSMC, Micron, and Samsung Electronics [3]. Group 2: Demand for Thin Wafers - The shift from planar SoC to 3D-IC and advanced packaging necessitates thinner wafers to enhance performance and reduce power consumption [4]. - The market demand for ultra-thin wafers is increasing, particularly for applications in fan-out wafer-level packaging and advanced 2.5D and 3D packaging, which are growing faster than mainstream integrated circuits [4]. - The rise of lightweight mobile devices, wearables, and medical electronics further drives the need for reliable thin silicon wafer processing capabilities [4]. Group 3: Challenges in Thin Wafer Processing - Engineers face challenges in preventing defects or micro-cracks during thin wafer processing, especially at the wafer edges [14]. - Selective plasma etching at the wafer edges helps remove edge defects, while selective chemical vapor deposition (CVD) can passivate edges [14]. - The management of back and edge defects is crucial for maintaining yield rates in thin wafer processing [14]. Group 4: Temporary Bonding and Debonding Techniques - The industry is increasingly focused on temporary bonding and debonding processes, with a growing demand for the recycling of carrier wafers, particularly silicon carrier wafers [22]. - Various debonding methods, including laser debonding and mechanical debonding, are being explored for their compatibility with thin wafer formats [17][21]. - The choice of adhesive and release materials is critical for achieving high yield and reliability in the production of ultra-thin devices [22]. Group 5: Process Optimization - The thinning of wafers requires a delicate balance between grinding, chemical mechanical polishing (CMP), and etching processes to meet strict total thickness variation (TTV) standards [11]. - Engineers are keen on quantifying variations during thinning and processing to ensure precision in TSV (through-silicon via) reveal processes [12]. - The use of glass carriers is becoming more common due to their thermal expansion coefficient (CTE) compatibility with silicon, which is essential for maintaining structural integrity during processing [9].

Core Insights - The ultrafast laser market in China is experiencing rapid growth, with the market size increasing from 2.26 billion yuan in 2018 to 4.02 billion yuan in 2023, representing a compound annual growth rate (CAGR) of 12.21% [1][14] - The market is projected to exceed 4.55 billion yuan in 2024, with a year-on-year growth of 13.18% [1][14] - The demand for ultrafast lasers is driven by the need for high-efficiency and precision processing across various industries, supported by national policies favoring high-end manufacturing [1][14] Industry Overview - Ultrafast lasers, including picosecond and femtosecond lasers, are characterized by extremely short pulse durations, high peak power, and precise energy focusing [1][3] - The technology is based on mode-locking techniques, which ensure short pulse widths, making ultrafast lasers suitable for advanced manufacturing applications [3][5] Industry Development History - The development of ultrafast lasers in China has progressed through four stages, starting from the first ruby laser developed in 1960 to the significant advancements in picosecond and femtosecond laser technologies in the 2000s [5] - The industry saw a substantial increase in shipments, with 2,300 units sold in 2020, nearly doubling from previous years [5] Industry Chain - The ultrafast laser industry chain includes upstream components such as optical and electronic components, with a trend towards domestic production of core parts [7][26] - The downstream applications are diverse, covering sectors like medical aesthetics, aerospace, precision machinery, energy, and consumer electronics [7] Market Trends - The ultrafast laser technology is evolving towards higher power, narrower pulse widths, and shorter wavelengths, enhancing processing speed and quality [23] - The demand for ultrafast lasers is expanding in precision manufacturing, consumer electronics, and renewable energy sectors, with increasing penetration rates [24] Key Companies - Notable companies in the ultrafast laser market include Inno Laser, Han's Laser, Delong Laser, and Raycus Laser, which are positioned in the second tier of the global market [17][19][21] - Inno Laser is recognized for its advanced capabilities in various laser technologies and is projected to achieve a revenue of 301 million yuan in 2024, reflecting a growth of 27% [19] - Han's Laser, a leading provider of intelligent manufacturing equipment, is expected to generate 14.771 billion yuan in revenue in 2024, with a growth of 4.83% [21]

Investment Rating - The report does not explicitly provide an investment rating for the ultrafast laser industry. Core Insights - The ultrafast laser industry is characterized by high technical barriers and strong brand and customer resource barriers, with a broad market demand expected to accelerate the replacement of traditional processing technologies. The market is anticipated to expand significantly due to supportive government policies and the development of downstream application fields [1][6][10]. Industry Definition - Ultrafast lasers refer to lasers with pulse durations shorter than nanoseconds, primarily including picosecond and femtosecond lasers. These lasers are recognized for their high instantaneous power and stable beam quality, making them suitable for various applications in medical, aerospace, consumer electronics, and precision machinery sectors [2][3]. Industry Classification - The ultrafast laser industry is classified based on the pulse width of the output laser into picosecond lasers and femtosecond lasers [3][4][5]. Industry Characteristics - The ultrafast laser industry features high technical barriers, high brand and customer resource barriers, and widespread market demand [6][10]. Development History - The ultrafast laser technology has evolved significantly since the 1960s, with key milestones including the development of the first ruby laser in China and the invention of CPA technology in the 1980s, leading to the commercialization of ultrafast lasers in the early 2000s. The industry saw a significant surge in 2020, with a near doubling of shipment volumes [11][15][14]. Industry Chain Analysis - The ultrafast laser industry chain consists of upstream raw materials (optical components, electronic components, pumping sources, and laser crystals), midstream manufacturing, and downstream applications in fields such as photovoltaic energy, medical aesthetics, and aerospace [16][19][26]. Market Size - The ultrafast laser market in China grew from 2.26 billion RMB in 2018 to 4.02 billion RMB in 2023, with a compound annual growth rate (CAGR) of 12.21%. The market is projected to reach 5.66 billion RMB by 2028, with a CAGR of 7.38% [28][29]. Future Market Drivers - The expansion of downstream application fields and the development of supporting industries are expected to drive the rapid growth of the ultrafast laser industry. The technology's advantages in precision, efficiency, and low energy consumption position it as a key player in modern manufacturing [31][32]. Competitive Landscape - The ultrafast laser industry is dominated by international players such as Coherent, IPG Photonics, and Trumpf, with a growing presence of Chinese companies like Han's Laser and Delong Laser. The competitive landscape is shaped by early market entry and technological advancements [37][38][40].