In the first half of 2025, as four core A-share photomask companies - Lontu Photomask, Luvei Optoelectronics, Tsinghong Photoelectric, and Guangshi Technology - successively disclosed their semi-annual reports, the latest developments in this high-barrier sector's "arms race" have emerged. Through analysis of key dimensions including R&D investment, talent reserves, patent portfolios, and technical progress, we aim to reveal the breakthrough momentum and future direction of domestic photomask enterprises in this competitive landscape.
**R&D Investment: Growth Patterns Amid Divergence**
R&D expenses serve as the "fuel" for corporate technological competitiveness. In H1 2025, the four companies showed divergent R&D spending patterns. Tsinghong Photoelectric led with RMB 24.85 million in R&D expenses, though down 2.48% year-over-year. Lontu Photomask, despite spending only RMB 11.79 million on R&D, achieved a notable 10.22% year-over-year growth, standing out among the four companies. Guangshi Technology and Luvei Optoelectronics recorded R&D expenses of RMB 19.51 million and RMB 18.01 million respectively, declining 15.92% and 9.59% year-over-year.
From an R&D intensity perspective, Lontu Photomask led with 10.17%, significantly outpacing the other three companies, demonstrating its "heavy investment" approach to R&D. Tsinghong Photoelectric recorded 4%, Luvei Optoelectronics 3.31%, and Guangshi Technology 2.82%. Lontu Photomask's high R&D intensity correlates closely with strategic initiatives including its Zhuhai factory commissioning and advanced process node deployment, building momentum for future technological breakthroughs and market expansion.
The scale and proportion of R&D personnel directly reflect technological talent reserves. As of June 30, 2025, Tsinghong Photoelectric led with 106 R&D personnel, followed by Guangshi Technology with 97, Luvei Optoelectronics with 56, and Lontu Photomask with 43.
In terms of R&D personnel ratio, Tsinghong Photoelectric (16.54%), Lontu Photomask (16.48%), and Luvei Optoelectronics (16.33%) showed minimal differences, while Guangshi Technology lagged at 12.52%. This indicates that except for Guangshi Technology, the other three companies maintain high R&D talent density, providing human resource support for technological innovation.
Patents represent the "hard currency" of R&D achievements. Tsinghong Photoelectric leads with 84 total patents including 18 invention patents. Although Luvei Optoelectronics has 67 total patents, it tops the group with 22 invention patents. Guangshi Technology and Lontu Photomask hold 72 and 70 total patents respectively, with 14 and 13 invention patents each. The number of invention patents directly reflects breakthrough capabilities in core technologies, with Luvei Optoelectronics' performance particularly outstanding, demonstrating effective progress in key technology development.
**Technical Capabilities: Diverse Strengths Accelerating Domestic Substitution**
**Tsinghong Photoelectric: Display Sector Leadership, Consolidating Market Position**
In flat panel display photomasks, Tsinghong Photoelectric ranks fourth globally and first in China. According to Omdia data, the company's 2024 flat panel display photomask sales ranked fourth worldwide. Its products cover 8.6G high-precision TFT photomasks and 6G medium-to-high precision AMOLED/LTPS photomasks, with deep partnerships with domestic panel manufacturers including BOE and Visionox. In H1 2025, the company achieved mass production of medium-to-high-end halftone masks (HTM) and small-scale production of ultra-high specification HTM, while planning development of OLED HTM and high-specification phase shift masks (PSM), continuously strengthening technical advantages in the display sector.
In semiconductor chip photomasks, Tsinghong Photoelectric has achieved 180nm process node mass production and 150nm small-scale production, serving IGBT and silicon carbide applications with partnerships including Chiplink Semiconductor and BYD Semiconductor. SEMI projects China's 2025 semiconductor chip photomask demand at $695 million, though current domestic manufacturing capability remains weak and import-dependent. Tsinghong Photoelectric is accelerating semiconductor chip photomask localization through expanded process R&D capabilities.
**Luvei Optoelectronics: Frequent Technical Breakthroughs Breaking Foreign Monopolies**
Luvei Optoelectronics has achieved breakthroughs across multiple technical domains, narrowing gaps with leading foreign enterprises. In G11 high-precision ultra-large photomasks, the company is the first and only domestic enterprise mastering this technology, ranking fourth globally. In halftone photomasks, it has achieved full-generation product mass production, breaking long-standing foreign monopoly. In PSM technology, it completed attenuated phase shift mask process development with some products entering mass production or customer validation. In photoresist coating, the company independently developed high-precision, large-size technology, extending into upstream supply chain segments.
Leveraging technical advantages, Luvei Optoelectronics has built a comprehensive product portfolio. In displays, it's the only domestic company capable of fully supporting different generation panel production lines across all display technologies. In semiconductors, it has achieved 180nm process mass production and 150nm/130nm small-batch production, covering third-generation semiconductor applications. The company is investing in the Luxin Semiconductor 130-28nm project, which will further enhance semiconductor sector positioning and drive domestic substitution upon commissioning.
**Lontu Photomask: Capacity Release and Technical Innovation Targeting Advanced Processes**
As a rare independent third-party semiconductor photomask manufacturer in China, Lontu Photomask's Zhuhai factory commissioning in H1 2025 marked a critical development milestone. The company made progress in third-generation PSM products, achieving the leap from R&D to mass production for 90nm node products, with 65nm node products under sampling validation, enhancing advanced process influence. Through deepened cooperation with leading domestic foundries, higher-grade products will undergo tape-out validation in H2, with future processes expanding toward 65nm and beyond, and downstream applications further diversifying.
Despite H1 2025 revenue decline due to capacity constraints, strategic pricing adjustments, and customer procurement changes, the decline moderated in Q2. With new Zhuhai factory capacity ramp-up and advanced packaging customer development, revenue and net profit are expected to gradually recover. The company continues increasing R&D investment, with H1 2025 R&D expenses up 10.22% year-over-year, supporting comprehensive third-generation semiconductor photomask technology development and maintaining competitive advantages.
**Guangshi Technology: New Production Lines Breaking Through, Targeting Advanced Processes**
Guangshi Technology's subsidiary Ningbo Guangshi's photomask project entered sampling validation in H1 2025. Despite small revenue scale, progress has been rapid. The "Photomask Manufacturing Project" launched in May 2023 achieved 55nm photomask delivery and 40nm production line commissioning in March 2025, filling domestic advanced process photomask gaps and breaking foreign monopoly.
Currently, related process products show ideal validation and tape-out progress at customer sites. Upon partial completion and commissioning, the company will become a domestically advanced independent photomask manufacturer, enhancing security and controllability of China's semiconductor photomask industry. The project generated RMB 7.17 million revenue in H1 2025, with promising future growth potential.
**Summary**
In H1 2025, the four core A-share photomask companies each demonstrated highlights in R&D investment, technical breakthroughs, and capacity deployment. While still facing challenges including high-end sector import dependence and intensifying market competition, continuous domestic substitution demand release and ongoing corporate investment in R&D and capacity expansion position domestic photomask enterprises to achieve broader breakthroughs in this high-barrier "arms race," providing stronger support for China's semiconductor and display industry development.