Shi Ying: China's semiconductor manufacturing materials industry has entered a fast-track of development.

　　Since the 18th National Congress of the Communist Party of China, with the integration of semiconductor enterprises into the market economy, technological advancements in China’s fields—including integrated circuit design, discrete device manufacturing, packaging, and testing—have been rapidly evolving. As a result, the semiconductor materials industry has entered a new phase of accelerated development and achieved remarkable accomplishments.

　　The semiconductor manufacturing materials industry is rapidly developing.

　　First, China has made significant strides in semiconductor manufacturing materials technology and product quality. Five years ago, nearly all of China’s materials used for 8- to 12-inch integrated circuit manufacturing relied on imports. Driven by the key support provided under Project 02, as well as the National Integrated Circuit Industry Investment Fund and preferential policies aimed at fostering the integrated circuit industry, material companies have steadily increased their investment in independent R&D, achieving remarkably impressive results. For instance, the copper/copper barrier layer polishing slurries and related products developed by Anji Microelectronics, the aluminum, titanium, copper, and tantalum targets created by Jiangfeng Electronics, and the NF3 and WF6 products manufactured by the 718th Institute of CSSC have already been incorporated into domestic and international integrated circuit production lines and are being widely adopted at advanced technology nodes. These products now meet the requirements of technology nodes ranging from 130nm down to 28nm. Meanwhile, the ultra-high-purity phosphine, arsine, and safe-source products developed by Nanda Optoelectronics have begun to be supplied in bulk to China’s 8- to 12-inch integrated circuit production lines and the LED industry. Projects such as 200mm silicon wafers and zone-melted single-crystal silicon wafers have successively passed acceptance tests. Under the current tight supply situation for silicon wafers, companies like Zhejiang Jinruihong, Youyan Semiconductor, and Tianjin Huan’ou have also demonstrated strong market performance. Furthermore, ultra-high-purity process chemicals from companies including Shanghai Xinyang, Zhejiang Kaisheng, Hubei Xingfu, and Suzhou Jingrui have either entered or are in the process of entering 8- to 12-inch integrated circuit production lines. A number of integrated circuit materials companies—including Nanda Optoelectronics, Shanghai Xinyang, Jiangyin Jianghua Micro, Jiangfeng Electronics, and Suzhou Jingrui—have successfully gone public on the main board or the ChiNext board, opening up new avenues for corporate innovation and development.

　　Second, policy support has propelled the rapid development of China’s materials industry. To implement the economic plans laid out by the State Council and carry out the stable growth plan for the integrated circuit industry, as well as to promote R&D innovation and transformation and upgrading of enterprises in the integrated circuit sector, relevant government departments have issued the “List of Tax-Exempt Goods—Productive Raw Materials and Consumables Imported for Self-Use by Integrated Circuit Manufacturers.” The items listed on this list are adjusted annually based on the domestic industrial development situation. The implementation of this policy has played a crucial role in creating a fair competitive environment for China’s integrated circuit materials industry and has opened up broader development opportunities for domestic semiconductor material enterprises. The Ministry of Industry and Information Technology, together with the Ministry of Finance and the China Banking and Insurance Regulatory Commission, has launched a pilot program for an insurance compensation mechanism for the first batch of new materials applications, providing valuable assistance to new integrated circuit materials products as they enter the market. Third, technological innovation is opening up a new chapter in the international market. The technological level, product quality, and management systems of some Chinese enterprises have now matched those of leading international technologies. Several products have begun to integrate into the global market—for example, polishing materials for CMP, sputtering targets, and underfill materials used in advanced packaging processes have entered the international market thanks to their unique technological advantages. Twelve-inch silicon wafers for 40- to 28-nanometer process nodes are currently under development, and it is expected that monthly production capacity will reach 150,000 wafers by the end of 2017. By 2020, these wafers should meet the technical requirements for 14-nanometer integrated circuit manufacturing. An engineering technology platform for 248-nanometer photoresists has already been established, and a series of related products are under development. Furthermore, breakthroughs have been made in the development of high-K dielectric precursors, which are now being marketed to both domestic and international high-end customers.

　　Breaking through homogeneous competition is the top priority.

　　For the future development of China’s semiconductor manufacturing materials industry, efforts should be focused on the following aspects.

　　First, we must address the issue of homogenization in business operations. Avoiding redundant capacity investments in similar products among domestic enterprises in sectors such as silicon materials, industrial chemicals, and specialty electronic gases is a pressing challenge that the industry urgently needs to tackle, in order to foster rational market competition. Relevant regions should provide enterprises with specialized industry guidance: whether they are domestically funded, foreign-invested, or Sino-foreign joint ventures, all should conduct thorough research on existing production capacities and make well-reasoned forecasts of future market demand when planning capacity expansion. They should focus on differentiated development within niche segments and aim for long-term returns from product manufacturing, thereby preventing disorderly competition among enterprises and the wasteful use of resources. Meanwhile, industry alliances and trade associations should further strengthen their research on overall domestic market demand and the state of domestic industrial development, establish effective mechanisms for releasing industry development roadmaps, and thus prevent unnecessary capacity duplication and resource waste. National policies should encourage strategic cooperation and mergers and acquisitions among enterprises, creating a healthy and sustainable industrial environment.

　　Second, we must intensify R&D investment and cultivate industrial talent. In the field of integrated circuits, each generation of process technology is accompanied by a new generation of materials, and material technologies are evolving at an unprecedented pace. To meet the demands of the integrated circuit industry’s development, we must adopt a forward-looking approach and remain committed to innovation. Moreover, currently, China’s material enterprises are generally small in scale, have weak profitability, and lack sufficient internal R&D capabilities. They therefore require sustained support from both the national government and society. According to statistics from the “2017 Report on the Development of China’s Semiconductor Supporting Industry” released by the Strategic Alliance for Technological Innovation in the Integrated Circuit Materials and Components Industry, in 2016, China’s materials sector employed only 29,932 people, among whom just 186 held doctoral degrees—accounting for merely 1%—and 1,233 held master’s degrees—representing only 4%. Thus, there is a severe shortage of high-level talent. According to incomplete statistics, China’s shortage of integrated circuit professionals amounts to as many as 400,000. To enhance the supply of specialized, highly educated, and highly skilled personnel in China, we need to persistently attract and nurture technical and managerial talent for the industry, thereby building up momentum for its healthy future development and laying a solid foundation for its growth and advancement. Third, we must place great emphasis on the technological development and capacity planning of raw materials used in semiconductor manufacturing, and establish a well-rounded supply chain. Currently, China relies heavily on imports for core raw materials—including ultra-high-purity polycrystalline silicon with 11–13 N purity, large-size high-end quartz crucibles, graphite thermal fields, ultra-high-purity metals used in high-end targets, photoresists, and formulated chemicals—essential components for producing silicon single crystals. This dependency poses significant constraints on the development of China’s high-end integrated circuit materials industry. Given the importance of ensuring the completeness of China’s integrated circuit manufacturing materials industrial chain, relevant technological and industrial development plans should prioritize the development and strategic layout of ultra-clean, high-purity raw materials, strengthen the deep integration of the entire industrial chain, break free from the situation where key links are controlled by others, and guarantee the industry’s future independent and controllable development.

　　Finally, we support the development of industry technology innovation strategic alliances. Since its establishment in 2012, the Strategic Alliance for Technological Innovation in the Integrated Circuit Materials and Components Industry has played a valuable platform role in integrating domestic technological and market resources, accelerating the industrialization of scientific and technological achievements in semiconductor materials, and building a local supply chain for materials used in China’s integrated circuit manufacturing. We hope that the Alliance will further enhance its contributions in areas such as formulating industrial development roadmaps, developing group standards, establishing platforms for the development of common industrial technologies, cultivating industry talent, and promoting international cooperation and exchanges. We also look forward to greater attention and support from relevant government departments, industry associations, enterprises, and all sectors of society for the Alliance’s development.

　　Source: Expert Interview from China Electronic News