Summary of Key Points
Recently, there have been rumors that Japan's four major photoresist manufacturers (Tokyo Ohka Kogyo, JSR, etc.) have completely cut off supplies of high-end photoresists to China. However, customs data confirms that the total amount of photoresists imported by China from Japan has not experienced a “sharp decline,” and neither Japanese officials nor companies have confirmed these rumors (similar rumors appeared last year). The article further analyzes that photoresist is a critical material in chip manufacturing, acting as a “photosensitive film” that records the chip patterns. Japan holds 90% of the global high-end market due to long-term technological accumulation and industry collaboration, but it is unlikely to cut off supplies easily, as China accounts for one-third of their demand. Chinese domestic photoresist production is making rapid progress; the localization rate for mature manufacturing processes has exceeded 30%, and high-end ArF photoresists are now being supplied in bulk. Even if Japan were to tighten supply in the future, it would not cause the industry to come to a halt.
Detailed Analysis
1. Are the Supply Cuts Really True or Just Rumors?
Rumors claim that four Japanese companies have stopped accepting new orders, withdrawn their technical teams, and extended the delivery periods for existing stock. However, customs data contradicts these claims: from January to May, China imported more than 1,400 tons of photoresists from Japan each month, totaling 8,900 tons—there was no “zero imports in February” or a “95% drop.” Similar rumors emerged last November (involving Canon and Nikon, which do not produce photoresists), but this time, not even Japanese official websites or companies reported them. In essence, these seem more like emotionally driven rumors rather than factual events.
2. Why Is Photoresist So Critical in Chip Manufacturing?
Think of chip manufacturing as “drawing on a wafer”: the lithography machine is the “projector” that transfers the pattern onto the wafer, and the photoresist acts as the “photosensitive film” that captures this pattern for subsequent etching. The key challenges in advanced manufacturing processes include:
- The Triangular Dilemma: To produce 7nm/5nm chips, the photoresist must meet three requirements—high resolution, fast speed, and precise accuracy (without rough edges). These criteria are mutually restrictive; improving one aspect often leads to trade-offs in others.
- The Challenge of EUV Technology: EUV lithography uses 13.5nm ultraviolet light, which results in finer patterns but fewer photons, increasing the risk of random defects. Even a single defect on a wafer can render it unusable, making EUV photoresist particularly valuable.
3. Why Does Japan Dominate 90% of the Global Market?
It’s not because of superior materials science, but rather decades of industry accumulation and collaboration:
- Early Investment and Timely Strategy: Tokyo Ohka Kogyo began producing photoresists in the 1960s and caught the boom in integrated circuits in the 1970s. Japanese semiconductors thrived in the 1980s, with each new generation of products developed based on real market demands, not just laboratory prototypes.
- A Strong Formula Library: Photoresist is not a generic product; different formulations are needed for various chip types (logic chips, DRAM, NAND flash memory), and different layers of the same chip require different formulas. Japanese companies have developed thousands of validated formulations and collaborate with global wafer manufacturers, making it difficult for others to replicate their technology.
4. Would Japan Really Cut Off Supplies to China?
It’s unlikely, as Japan’s photoresist industry is heavily dependent on the Chinese market:
- Large-Scale Business: The research and development cost of advanced photoresists is enormous, but the global market is only worth $3.3 billion (as of 2025), with China accounting for one-third of the demand (and this figure is still growing). If Japan cut off supplies, its companies would face significant profit losses without any compensation.
- Lack of Official Restrictions: While Japan has imposed export restrictions on semiconductor equipment and technology, it has not included photoresists in these bans, as doing so would harm its own economy.
5. Can Chinese Photoresist Production Become Self-Sufficient?
The answer is yes:
- Rapid Increase in Localization Rates: The localization rate has risen from 5% five years ago to 15% today; for mature manufacturing processes (G-line/I-line), it’s over 30%.
- Progress in High-End Technologies: Nanda Optoelectronics is the only Chinese company capable of supplying 28nm immersion ArF photoresists in bulk. Xuzhou Bokang’s ArF products have been used by SMIC and Yangtze Memory, and Beijing Kerui’s KrF production capacity is expanding.
- Alternative Suppliers: After the 2019 Sino-Japanese tensions, South Korea has established its own ArF supply chain (companies like Dongjin Semiconductors and SEMIKON). In terms of EUV technology, South Korea is only 1-2 generations behind Japan—meaning China could still obtain supplies from there if necessary.
Conclusion
The reason these rumors spread so widely reflects concerns about supply chain disruptions. However, while Japan remains a leader, China is no longer completely dependent on foreign suppliers, and South Korea can serve as a backup. For China’s semiconductor industry, the real strength lies in its ability to continue operating even without external supplies. The advancement of domestic photoresist production is a testament to this resilience.