With the gradual expansion of downstream manufacturing demand, the prototype of the photoresist industry chain in mainland China has emerged, and the market scale has grown significantly. According to the data, the scale of the mainland photoresist market increased from 5.87 billion yuan in 2017 to 8.4 billion yuan in 2020, with an average annual compound growth rate of 12.7%, and it is expected that the mainland photoresist market size will reach 9.86 billion yuan in 2022.
China's photoresist market size and growth rate from 2017 to 2022
Source: Public information, compiled by Huajing Industry Research Institute
With the continuous growth of semiconductor, PCB and panel production capacity, the market demand for upstream materials photoresist has grown simultaneously, and the output of photoresist has grown rapidly. According to the data, the output of photoresist in mainland China reached 130,000 tons in 2020, a year-on-year increase of 18.2%. It is expected that the output of photoresist in mainland China will reach 190,000 tons in 2022.
China's photoresist production and growth rate from 2017 to 2022
Source: Public information, compiled by Huajing Industry Research Institute
At present, the production and manufacturing of photoresist is mainly monopolized by Japanese manufacturers such as JSR, Tokyo Oika, Shin-Etsu Chemical, Sumitomo Chemical, etc., especially in the field of high-resolution KrF and ArF photoresists, and its core technology is basically mastered by American and Japanese manufacturers. There is still a gap between local enterprises in mainland China and foreign photoresist manufacturers, but in recent years, local enterprises in mainland China have gradually developed, and some domestic enterprises have made breakthroughs in import substitution of high-end products such as photoresist. According to the data, the largest market share of Tokyo Applied Chemicals is 27%, and the market of DuPont, JSR, and Sumitomo Chemical is 17%, 13%, and 13% respectively.
The competitive landscape of China's photoresist market in 2021
Source: Public information, compiled by Huajing Industry Research Institute
Jacques Technology mainly develops, produces and sells electronic materials, LNG insulation panels and flame retardants. Among them, the products involved in the electronic materials business mainly include electronic special gases, photoresists, etc., and photoresist products are mainly used in high-generation LCD displays and OLED displays. In 2021, Jacques Technology's operating income reached 3.782 billion yuan, and the net profit attributable to the parent company was 335 million yuan. From January to June 2022, the operating income was 2.059 billion yuan and the net profit reached 281 million yuan.
2017-2022 H1 Jacques Technology revenue and profit
Source: Public information, compiled by Huajing Industry Research Institute
This article is excerpted from the "Analysis of the Industrial Chain, Development Status and Trend of China's Photoresist Industry in 2022, and the Process of Localization of the Industry Promoted by International Trade Frictions" released by Huajing Industry Research Institute.