In the global semiconductor supply chain, there exists a seemingly unremarkable yet pivotal node that can determine the destiny of a nation's technology—photoresist. It appears to be merely a photosensitive material in the chemical industry, yet it serves as the most crucial "lifeblood" in the production process of every chip. Without it, even the most advanced wafer fabs would be mere paper tigers.
Nowadays, most of this "blood" is in the hands of others.
  According to authoritative statistics from SEMI, the market size of China's photoresist reached RMB 12.8 billion in 2024, but the localization rate is less than 5%. This means that the vast majority of photoresist is imported to meet demand. Meanwhile, Japanese companies control more than 90% of the global supply of high-end photoresist, especially in the key process areas of KrF and ArF photoresist, where Japan's influence dominates the entire market.  
  This 90% is not an exaggerated industry claim, but a tangible market reality. Industry reports show that leading Japanese companies such as JSR, Tokyo Chemical Industry (TOK), Shin-Etsu Chemical, Sumitomo Chemical, Fujifilm, and several other top players control the vast majority of advanced photosensitive material production capacity and core technologies. These materials are not only fine and high purity, but also possess hundreds of key patents.  
  Moreover, Japanese enterprises have accumulated decades of industry advantages in standard setting, formula optimization, equipment matching, and after-market services for high-end photoresists. In other words, when it comes to technological accumulation alone, there is still a significant gap between domestic photoresist enterprises and Japanese giants.  
China's semiconductor industry has achieved astonishing expansion in manufacturing capabilities, but it appears to be worryingly vulnerable when it comes to photoresists. Industry statistics show that China's import dependence on Japanese photoresists is as high as 80%-90%, with more than 50% directly sourced from Japan. Even in mature processes such as G-line/I-line photoresists for nodes above 90nm, domestic products in China can only meet part of the demand. When it comes to high-end process photoresists, domestic products are still inadequate.  
  However, China relies entirely on imports for advanced processes such as EUV photoresists below 7nm. The global market for EUV photoresists is almost monopolized by Japan, leaving domestic enterprises with little foothold in this product category.  
  What does this mean? For core Chinese manufacturers such as Semiconductor Manufacturing International Corporation (Smic), Hua Hong Semiconductor, and Yangtze Memory Technologies Co., Ltd., once the supply of photoresist is disrupted, factories may be forced to slow down or shut down production - this is not hearsay, but a real risk.  
  In the second half of 2025, Japan's export controls towards China escalated continuously. According to multiple media reports, some Japanese companies have begun to impose stricter scrutiny on the export of photoresist to China, extending the approval process, reducing quotas, and even indirectly ceasing supply. The industry vividly likens this to the threat of "having no food to cook".  
  This concern is not alarmist. Historically, in 2019, Japan imposed export controls on three key materials, including photoresists, to South Korea, causing a temporary shock to the semiconductor industry in South Korea. Now, history seems to be repeating itself - but this time, the affected party will be the world's second-largest semiconductor market: China.
  The supply shortage may also affect deeper levels of the industrial chain: key raw materials for photoresists, such as specialty resins, monomers, and photoinitiators, are also reliant on imports. Once the peripheral supply chain is disrupted, the space for domestic substitution will be further compressed.  
  In such an international environment, the breakthrough of China's photoresist industry is not only an economic issue, but also a national strategic issue. The good news is that the domestic photoresist industry is not just empty talk; it is undergoing a quiet transformation:
1. National strategic support is fully rolled out
  In recent years, semiconductor materials, particularly photoresists, have been incorporated into strategic priorities at the national level. Policies such as the National Integrated Circuit Industry Investment Fund have explicitly identified key materials like photoresists as a focal point for support. China has released the country's first EUV photoresist testing standard, providing a clearer technical path and policy support for domestic substitution.
2. The rapid rise of local enterprises
  Currently, several capable photoresist enterprises in China have joined the race in research and development and production, such as Nanda Optoelectronics, Tongcheng New Materials, Rongda Photosensitive, Jingrui Electronic Materials, Shanghai Xinyang, and Hongyu New Materials. Among them, Nanda Optoelectronics has achieved verification and small-scale sales of some ArF photoresist products, which was unimaginable progress in the past.
  More importantly, domestic production is not only accelerating breakthroughs in low-end mature processes, but also making substantial progress in the field of KrF and even ArF photoresists. In some domestic 28nm process photoresist verifications, the performance is close to that of imported materials, indicating that domestic production is moving from "catching up" to "approaching".  
3. International cooperation and diversification strategy
  Although Japan monopolizes the high-end photoresist market, there are still suppliers from the United States, South Korea, Europe, and other regions globally. Chinese enterprises are building a diversified supply chain system through technology introduction, joint ventures, and global procurement combinations, in order to reduce the risks posed by a single country or supplier.  
  From relying on imports to gradually achieving domestic substitution, the path to breakthrough for China's photoresist industry is fraught with difficulties. The high technical barriers of high-end materials, long research and development cycles, and the intensive capital and talent requirements present no shortcuts. However, policy support, market demand, and the courageous advancement of local enterprises have jointly built the strength for domestic photoresists to catch up with the world.
  If photoresist is compared to the "blood" of chip manufacturing, then the health of China's semiconductor industry cannot be separated from the self-sufficiency of this key material. Some experts believe that if the domestic production rate can be significantly improved in the next few years, the strategic security of China's chip industry chain will undergo a qualitative leap.