Japan has reportedly halted all exports of photoresist to China since mid-December, with companies including Canon, Nikon, and Mitsubishi Chemical involved in the unofficial restriction, according to industry sources and Asia Times.
This move comes at a critical time of surging global demand for HBM and general DRAM, which had created an opportunity for Chinese chipmakers like SMIC and CXMT to expand production. The restriction directly threatens these expansion plans, as photoresist is an essential material for photolithography, determining chip precision and yield.
Japan dominates the global photoresist market, holding over 77% of the global IC photoresist market share and more than 90% of high-end ArF and EUV photoresists. This mirrors a previous 2019 restriction against South Korea.
The ban is forcing South Korean firms like Samsung and SK Hynix to deepen supply chain ties with Japan, potentially shifting industry dynamics. It may also signal a trend toward "de-risking" supply chains from China.
For China's chip industry, this crisis creates an urgent push for domestic substitution. While China has made progress in mid-to-low-end photoresists, high-end materials remain a challenge. Significant state-backed investment is now flowing into semiconductor materials, including DRAM photoresist.
ICgoodFind: This disruption may accelerate China's push for self-reliance in critical semiconductor materials, reshaping long-term supply chain strategies.
