Core Insights - The semiconductor photoresist industry is crucial for chip manufacturing, directly impacting chip resolution, yield, and cost, and is characterized by high technical barriers [1][2] - China is prioritizing the development of photoresists through multi-dimensional policy support, aiming for a market size of approximately $13.46 billion by 2024 [1][8] - Domestic companies are forming a multi-tiered industrial structure, with leading firms like Nanda Optoelectronics and Tongcheng New Materials achieving mass production and integration into supply chains [1][12] Industry Overview - Semiconductor photoresists, also known as photoresists, are materials that change solubility when exposed to radiation, playing a key role in accurately transferring circuit patterns onto wafers [2][3] - The market for semiconductor materials in China is projected to reach $13.46 billion in 2024, with a growth rate of approximately 2.85% [8][12] Policy Support - The Chinese government has established a comprehensive policy framework to support the semiconductor industry, including tax incentives and application demonstrations, to accelerate the development of photoresists [5][6] - Key policy documents include the "14th Five-Year Plan for the Development of Raw Materials Industry" and the "Action Plan for Stable Growth of Electronic Information Manufacturing Industry 2025-2026" [6][8] Industry Chain - The semiconductor photoresist industry chain in China is characterized by strong collaboration across upstream, midstream, and downstream sectors, with a clear path towards domestic production [6][8] - Domestic companies have achieved high self-sufficiency in mid-to-low-end raw materials, while high-end materials still require breakthroughs [6][10] Market Dynamics - The demand for high-end photoresists is increasing as chip manufacturing processes advance, with the market for photoresists expected to reach approximately 5.63 billion yuan in 2024 [12][14] - The domestic market is seeing a shift towards local alternatives, with KrF photoresists becoming the mainstay for mid-to-high-end applications and ArF photoresists achieving significant breakthroughs [12][14] Competitive Landscape - The global photoresist market is dominated by foreign giants, with Japanese and American companies holding about 87% of the market share [12][14] - Domestic companies are gradually increasing their market share in mature processes, with firms like Nanda Optoelectronics leading in ArF photoresists and Tongcheng New Materials dominating KrF photoresists [14][16] Future Trends - The semiconductor photoresist industry in China is expected to evolve along three main lines: technological breakthroughs, ecological collaboration, and competitive restructuring [15][16] - Future developments will focus on enhancing the performance of KrF and ArF photoresists, advancing EUV photoresist technology, and fostering vertical integration within the industry [15][16]

Group 1 - The company has not purchased ASML's lithography machines [1] - The company has not yet developed EUV photoresist [1]

Core Viewpoint - The company has not purchased ASML's lithography machines and is currently not developing EUV photoresists [1] Group 1 - The company confirmed on the investor interaction platform that it has not acquired ASML's lithography machines [1] - The company has not yet developed EUV photoresists [1]

Market Overview - On October 27, the A-share market experienced a volatile rise, with the Shanghai Composite Index briefly surpassing 3999 points, setting a new annual high. The total trading volume in the Shanghai and Shenzhen markets reached 2.36 trillion yuan, an increase of 365 billion yuan compared to the previous trading day [1] Sector Performance - The storage chip sector showed strong performance throughout the day, with stocks like Demingli (001309) hitting new highs for two consecutive days, and several other stocks such as Jiangbolong (301308) and Xiangnong Chichuang also reaching new highs. The computing hardware sector continued its strong trend, with Huylv Ecological (6 days, 4 boards) and other stocks like Xinyisheng (300502) and Zhongji Xuchuang (300308) also hitting historical highs [1] - The nuclear power sector was active, with stocks like Dongfang Tantalum (000962) achieving two boards in three days, while the wind power sector collectively weakened, with Hai Li Wind Power experiencing a significant drop [1] Storage Sector Insights - The storage index rose by 5.23%, with notable stocks such as Jiangbolong (301308) and Demingli (001309) showing significant monthly gains of 19.82% and 10.00%, respectively [2] - The recent price increases among overseas storage giants are driven by the explosion of AI applications, leading to a surge in demand for high-performance storage chips used in AI servers and data centers, which is pushing prices up across the storage market [3] Semiconductor Equipment Developments - The semiconductor equipment index increased by 3.32%, with several stocks experiencing notable gains. The establishment of China's first EUV photoresist standard is expected to fill a technical standard gap in the industry and provide a unified testing method for performance evaluation [4][5] - The advancements in photoresist technology are anticipated to promote the collaborative development of related industries, benefiting upstream material suppliers, equipment manufacturers, and downstream application enterprises [5] Market Outlook - Analysts remain optimistic about the A-share market's performance, citing a new wave of technological revolution and industrial transformation in China, which has produced many internationally competitive enterprises. The current risk levels in the A-share market are considered normal and reasonable [6] - The "slow bull" market is expected to continue, with a focus on the "big technology" sector as a long-term mainline. Upcoming earnings reports from A-share companies and US tech giants are anticipated to be a focal point, potentially creating a resonance window for the global tech AI market [6]

Market Overview - The A-share market experienced a volatile rise, with the Shanghai Composite Index briefly surpassing 3999 points, reaching a new high for the year. The total trading volume in the Shanghai and Shenzhen markets was 2.36 trillion yuan, an increase of 365 billion yuan compared to the previous trading day [1]. Index Performance - The Shanghai Composite Index closed at 3996.94, up 46.63 points or 1.18% - The Shenzhen Component Index rose by 200.22 points or 1.51%, closing at 13489.40 - The ChiNext Index increased by 21.98 points or 1.50%, closing at 1484.21 - The CSI 300 Index gained 55.34 points or 1.19%, closing at 4716.02 [2]. Sector Performance - The storage chip sector showed strong performance, with multiple stocks hitting new highs, including Demingli and Jiangbolong. The computing hardware sector also maintained its strength, with Huylv Ecological and others achieving significant gains [3][4]. - The nuclear power sector was active, with stocks like Dongguan Tantalum and Antai Technology seeing notable increases [3]. - Conversely, the wind power sector faced collective weakness, with Haile Wind Power experiencing a significant drop [4]. Storage Industry Insights - The storage sector is experiencing a surge, driven by rising prices from overseas storage giants due to increased demand for high-performance storage chips related to AI applications. This trend is expected to benefit various segments of the storage industry, including storage modules and supporting materials [8]. - The storage index rose by 5.23%, reflecting the overall positive sentiment in the sector [7]. Semiconductor Equipment Developments - The semiconductor equipment sector is also witnessing growth, with multiple stocks showing significant increases. The establishment of the first EUV photoresist standard in China is expected to fill a technological gap and promote the development of the semiconductor industry [12][13]. - The semiconductor materials sector is in a phase of demand expansion and domestic substitution, with expectations for the photoresist market to grow by 6.8% to 17.9 billion yuan by 2025 [13]. Market Outlook - Analysts remain optimistic about the A-share market, citing a favorable risk level and the emergence of competitive enterprises in the context of a new technological revolution. The current low interest rates and supportive government policies are also seen as positive factors for market growth [15][16]. - The "slow bull" market trend is expected to continue, with a focus on the technology sector as a long-term investment theme [16].

Core Viewpoint - The establishment of the first national standard for extreme ultraviolet (EUV) photoresist testing in China marks a significant step towards addressing the country's reliance on imported semiconductor materials and enhancing its competitiveness in the global semiconductor industry [2][5]. Group 1: Standard Development - The proposed standard, titled "Test Methods of Extreme Ultraviolet (EUV) Photoresist," was initiated on October 23, 2023, and will be open for public comment until November 22, 2023 [2][3]. - The standard is being drafted by key institutions including Shanghai University, Zhangjiang National Laboratory, Shanghai Huali Integrated Circuit Manufacturing Co., and Shanghai Micro Electronics Equipment (Group) Co., Ltd. [3][4]. - This standard aims to fill the gap in China's testing framework for advanced lithography materials, providing a unified and scientific performance evaluation framework [3][4]. Group 2: Importance of EUV Photoresist - EUV photoresist is critical for semiconductor manufacturing at 7nm and below, with a working wavelength of 13.5nm, essential for producing advanced logic and high-density storage chips [4][7]. - Currently, the global EUV photoresist market is dominated by foreign companies, with JSR and Tokyo Ohka holding over 95% market share, while domestic production remains non-existent [4][7]. - The standard is expected to enhance the verification efficiency of domestic photoresists, promote mutual recognition of test data, and reduce technical risks in production lines [5][8]. Group 3: Strategic Implications - The implementation of this standard is anticipated to drive technological upgrades in local testing equipment and support cost control in research and development [5][8]. - It will accelerate the transition from long-term reliance on imports to self-sufficiency in semiconductor materials, thereby supporting the stability and security of the high-end chip manufacturing supply chain [5][8]. - The establishment of this standard signifies a systematic step towards overcoming the "bottleneck" issues in key EUV materials, enhancing China's voice in the global semiconductor materials standard system [5][8]. Group 4: Research Progress - Recent advancements in EUV photoresist research have been reported by various Chinese universities, contributing to the foundational knowledge necessary for developing domestic high-end photoresists [9]. - Notable achievements include the use of cryo-electron tomography to reveal the three-dimensional microstructure of photoresist molecules and breakthroughs in titanium cluster materials that enhance photo-sensitivity [9]. - These research efforts are crucial for accumulating theoretical and experimental support for the technological breakthroughs needed in domestic high-end photoresists [9].

Core Insights - The Chinese Ministry of Commerce has implemented export controls on foreign items and related technologies containing Chinese mineral components, effective from October 9, 2025, under the principle of "long-arm jurisdiction" [1][3]. Policy and Regulations - The export control applies to products containing 0.1% or more of Chinese heavy mineral components or utilizing Chinese mineral technology, requiring approval from Chinese authorities [3]. - Export applications for military users or those related to the development of weapons of mass destruction will be directly rejected [3]. Impact on Semiconductor Industry - China holds a dominant position in the mineral sector, with 37% of global mineral reserves and over 70% of the refining and separation processes, particularly controlling 87% of the global smelting capacity for high-purity heavy minerals used in lithography machines [5]. - ASML is facing an unprecedented supply chain crisis due to the new regulations, with internal assessments indicating a potential 30% decrease in EUV lithography machine capacity if mineral supply disruptions continue [5][7]. - The delivery cycle for each EUV lithography machine is expected to extend from 24 months to 36 months, impacting major semiconductor manufacturers like TSMC, Samsung, and Intel, which are in critical phases of building next-generation chip factories [7]. Defense Industry Consequences - The U.S. defense industry is also affected, with Lockheed Martin's F-35 radar sensitivity declining by 23% due to a lack of neodymium magnets, and Boeing's MQ-25 drone project facing risks due to shortages of mineral permanent magnet motors [9]. - A significant 78% of guided systems in existing U.S. weapon stockpiles are reported to be facing mineral supply crises [9]. Global Supply Chain Repercussions - The export controls have led to a 60% reduction in global EUV lithography mirror coating capacity, with China being the sole producer of high-purity gadolinium gallium garnet crystals necessary for precise temperature control in lithography machines [11]. - Companies attempting to bypass Chinese minerals face challenges, with alternative materials resulting in a 40% cost increase and a 30% performance decline [9]. Strategic Responses - The Chinese semiconductor industry is exploring unique strategies to overcome external technology blockades, such as the "non-lithography compensation" strategy proposed by New Kai Lai, which aims to optimize DUV lithography processes to achieve EUV-like precision [11][13]. - Domestic development of EUV photoresists and auxiliary materials has seen significant progress, with over 30% of key photoresists achieving domestic production rates [13]. Industry Restructuring - The global semiconductor supply chain is undergoing deep restructuring due to China's mineral controls, with the EU aiming for an 80% self-sufficiency rate in minerals by 2030 and the U.S. Department of Defense investing $90 billion to build a domestic mineral supply chain [15]. - The shift from "efficiency-first" to "security-first" in supply chains poses challenges to ASML's global production model [15]. Technological Challenges - Attempts by Japanese companies to replace critical minerals have shown significant performance degradation, with experiments indicating a 47% performance drop in gallium-based magnets after 3000 hours of operation [17]. - China's dual-review mechanism for export controls requires comprehensive data tracing from mines to finished products for any foreign products using Chinese minerals, increasing supply chain transparency challenges for ASML [17].

Core Insights - The Chinese semiconductor industry is strengthening its foundation by focusing on the basic "nutrient" aspects of the supply chain rather than relying solely on a single technological breakthrough [2] - A recent announcement from the Ministry of Commerce requires approval for the export of products containing 0.1% or more of Chinese rare earth elements, directly impacting semiconductor equipment giants like ASML and Applied Materials [2] - The domestic production of key materials, such as EUV photoresists, is increasing, with the localization rate surpassing 30% for critical photoresists [4] Resource Management - The new policy on rare earth exports is a strategic move to control resources essential for semiconductor manufacturing, particularly for equipment that relies heavily on rare earth elements [2] - The establishment of a domestic EUV photoresist R&D platform in Wuxi aims to break the monopoly of foreign companies in the high-end photoresist market [4] Technological Breakthroughs - The industry is not only focusing on acquiring EUV lithography machines but is also exploring differentiated process paths, such as New Kylin's "non-lithographic compensation" strategy, which maximizes the performance of existing DUV lithography machines [7] - New Kylin's approach involves a complex process cycle to compensate for precision gaps, demonstrating a significant shift in manufacturing strategy [7] Process Integration - New Kylin has standardized high-difficulty operations, resulting in a series of equipment that supports the entire manufacturing process, achieving an 85% yield rate for 5nm logic chips in collaboration with SMIC [9] - This breakthrough indicates that the Chinese semiconductor industry can develop new pathways for advanced processes without relying on external equipment [9] Design Tools Development - The launch of EDA software by New Kylin's subsidiary, Qiyunfang, marks a significant step in breaking international monopolies in design tools, enhancing operational efficiency by 30% and reducing hardware development cycles by 40% [11] - The integration of this EDA software with domestic operating systems and databases facilitates a seamless design-manufacturing connection [13] Ecosystem Resilience - The Chinese semiconductor ecosystem is evolving into a robust structure, with rare earths and materials forming the soil, non-lithographic processes as the main trunk, and design tools as the branches [15] - This interconnected ecosystem allows for sustained vitality even in the face of localized disruptions, positioning China to redefine the competitive landscape in the global semiconductor industry [15]

Core Viewpoint - The article emphasizes the critical role of new materials in driving technological advancements and economic growth, particularly in sectors like artificial intelligence, aerospace, and energy. It highlights China's new materials industry, which has surpassed 82 trillion yuan in scale, and outlines key development tasks to enhance strategic material autonomy and innovation [4][6]. Summary by Sections 1. Overview of New Materials - New materials are defined as those with superior properties or functions achieved through structural design, composition optimization, or process innovation. They encompass eleven core areas, including advanced basic materials, strategic materials, and cutting-edge materials. The new materials industry in China is projected to exceed 82 trillion yuan by 2024, with an annual growth rate of over 12% [6][5]. 2. Material Classification and Core Categories - **Advanced Basic Materials**: This includes high-strength steel, advanced non-ferrous metals, and high-performance chemical materials, which are essential for modern industrial systems and strategic emerging industries [9][11][12]. - **Strategic Materials**: High-end special materials for equipment, new generation information technology materials, and renewable energy materials are crucial for national security and technological independence [14][15][18]. - **Cutting-edge Materials**: This category includes low-dimensional materials, quantum information materials, and advanced energy materials, which are at the forefront of research and development [22][23][24]. 3. Key Development Tasks - The report outlines eight key development tasks focused on ensuring the autonomy of strategic materials, enhancing innovation capabilities, and addressing core challenges in performance breakthroughs and process barriers [4][66].

Core Viewpoint - Tekscend Photomask, a leading semiconductor photomask manufacturer, has successfully launched an IPO in Japan, raising 156.6 billion yen, marking it as the second-largest IPO in Japan this year, and positioning the company as a key player in the global semiconductor industry [1][2][5]. Company Overview - Tekscend Photomask, headquartered in Tokyo, was formerly a division of Toppan Holdings and became independent in late 2021. The company is primarily owned by Toppan (50.1%) and Integral Corp. (49.9%) [3]. - The company specializes in semiconductor photomasks for process nodes ranging from 90nm to 1nm, including advanced specifications like EUV, and operates eight factories across Japan, the U.S., and Europe [4][5]. IPO Details - The IPO was priced at 3,000 yen per share, at the upper limit of the pricing range, and attracted significant interest from institutional investors, including the Qatar Investment Authority [2][3]. - The funds raised will be used for R&D in 1nm EUV masks, expanding production capacity in Dresden and Tokyo, and repaying acquisition loans [5][15]. Market Position and Strategy - Tekscend holds approximately 25% market share in the advanced photomask market for 3nm and below, making it the only company in Japan capable of mass-producing EUV masks [5][15]. - The company aims to achieve mass production of 2nm masks by the 2026 fiscal year and 1nm masks by 2030, with a roadmap that includes significant technological advancements and collaborations with IBM and imec [4][14]. Industry Context - Japan's semiconductor industry is experiencing a resurgence, supported by government policies and investments aimed at reclaiming 10% of global production capacity [7][10]. - The establishment of companies like Rapidus, backed by major corporations, aims to enhance Japan's position in the semiconductor supply chain, particularly in advanced logic chips [8][10]. Financial Performance - Tekscend's projected revenue for the 2024 fiscal year is approximately 175 billion yen, with an operating profit margin of 18%. The company plans to increase the revenue share from high-end masks to 55% by 2028 [5][15]. - The IPO proceeds are expected to significantly enhance the company's financial position, allowing for strategic investments in high-margin segments of the semiconductor supply chain [15][16].