Core Viewpoint - The statement from a Japanese economist regarding China's inability to mass-produce lithography machines due to a lack of "core materials" reflects a sense of superiority and outdated thinking about China's capabilities in the semiconductor industry [1][8]. Group 1: Market Dynamics - The global photoresist market has been dominated by Japanese companies such as JSR, Tokyo Ohka, and Shin-Etsu Chemical, particularly in high-end ArF and EUV photoresists [3]. - Chinese company Tongcheng New Materials has achieved certification for its ArF/ArFi photoresist products from domestic chip manufacturers and secured mass production orders, projecting nearly 200 million yuan in revenue for 2025, with a growth rate exceeding 50% [3][5]. - Tongcheng New Materials has captured over 40% market share in the KrF photoresist sector and won 35% of the annual orders from Yangtze Memory Technologies [5]. Group 2: Technological Advancements - Nanda Optoelectronics has also received certification for its ArF photoresist from Yangtze Memory Technologies, with domestic production rates increasing from less than 1% in 2023 to over 5% [6]. - Chinese companies like Lante Optics and Sunny Optical have made significant advancements in optical lens materials, establishing themselves as key players in automotive and consumer electronics, although they still lag behind in high-end lithography lenses [6]. Group 3: Structural Changes in Supply Chain - The Japanese economist's comments reveal a failure to recognize the structural changes occurring in the global semiconductor supply chain, particularly as the U.S., Japan, and the Netherlands impose technology restrictions on China [8]. - These restrictions have inadvertently accelerated the efforts of Chinese companies to overcome critical supply chain challenges, leading to a shift in market dynamics [8][11]. - The notion of "soul materials" being irreplaceable is challenged by historical precedents where technological monopolies have been disrupted [10]. Group 4: Future Outlook - The Japanese semiconductor industry's past dominance has been challenged by competitors from South Korea and Taiwan, suggesting that similar shifts could occur in the materials sector [10]. - While China still needs time to catch up in high-end photoresists and specialty optical materials, the assertion that it can "never mass-produce" is overly absolute and reflects emotional bias rather than technical analysis [10]. - The ongoing development of Shanghai Microelectronics' 28nm lithography machine and plans for EUV equipment delivery by 2026 indicate a synchronized advancement in both equipment and materials within the industry [10].