Semiconductor photoresist, a core consumable in lithography processes, alters solubility under light exposure to precisely transfer circuit patterns onto wafers. Its performance directly impacts chip resolution, yield rates, and production costs, making it one of the most technologically challenging segments in the semiconductor supply chain. China has prioritized its development, implementing multi-tiered policies spanning industrial planning, fiscal incentives, and application support to accelerate R&D, capacity expansion, and downstream adoption.

Currently, China’s semiconductor materials sector is at a pivotal stage, with bulk supply capabilities for basic materials improving and breakthroughs achieved in high-end materials. The market reached $13.46 billion in 2024, with photoresist accounting for approximately ¥5.63 billion. KrF photoresist dominates mid-to-high-end substitution, while ArF photoresist has achieved critical technological milestones. Domestic leaders like Nata Opto-electronic Material (300346.SZ) and Tongcheng New Materials (603650.SH) have begun mass production and supply chain integration.

The industry’s future hinges on three key trajectories: technological innovation, ecosystem collaboration, and market restructuring—aiming for high-end breakthroughs, closed-loop ecosystems, and differentiated competition to achieve self-sufficiency. Listed players include Jingrui Electronic Materials (300655.SZ), Huamao Technology (603306.SH), and Shanghai Xinyang (300236.SZ).

**Industry Overview** Photoresists, classified by exposure wavelength, escalate in complexity with shorter wavelengths: G-line (436nm) for >0.5μm nodes; I-line (365nm) for 55nm+ logic/memory chips; KrF (248nm) for 28-90nm layers; ArF (193nm) dry/immersion for 7-28nm processes; and EUV (13.5nm) for sub-7nm nodes—currently limited to a few global manufacturers.

**Policy Framework** China’s integrated circuit policies, including the 2024 Key New Materials Catalog and VAT incentives, designate photoresist as a strategic material, bolstering R&D through tax breaks and insurance subsidies.

**Supply Chain Dynamics** Upstream: Localized production of mid-low-end raw materials (e.g., phenolic resins) contrasts with ongoing high-end resin R&D. Midstream: G/I-line and KrF photoresists are commercialized; ArF under validation; EUV in early development. Downstream: Foundries like SMIC and YMTC drive demand, fostering domestic substitution despite stringent certification barriers.

Driven by AI and EV markets, China’s chip manufacturing sector grew 16.58% YoY to ¥1.43 trillion in 2024, projected to hit ¥1.62 trillion in 2025—propelling photoresist demand toward higher precision and process compatibility.

*Note: Data sourced from industry analysis reports.*