[Proposal for the 13th Five-Year Plan (3)] The industrialization of critical materials must meet the 28-nanometer process requirement.

　　As the foundation for the development of the integrated circuit industry, materials not only play a supporting role within the industry but also complement process technologies, jointly driving the continuous upgrading of integrated circuit manufacturing technologies and fostering innovative development in the industry. In the process of achieving secure, reliable development and unimpeded technological advancement in the integrated circuit industry, the strategic importance of integrated circuit materials is becoming increasingly prominent.

　　Overall Goals for IC Materials during the 13th Five-Year Plan

　　Overall material objectives: Achieve industrialization technology levels for key materials that meet the 28nm process requirements and realize large-scale industrial production; advance industrial technologies in selected specialized fields to the 20–14nm level, with products entering production-line applications; establish a prominent position in research on cutting-edge technologies; build a common technology application and development platform for the materials industry; promote resource integration and foster the emergence of 2–3 world-class enterprises that rank among the global leaders in their respective fields; and raise the domestic production rate of materials to a level capable of reaching 50%.

　　Key Tasks Related to the 13th Five-Year Plan

　　First, we will focus on the development and industrialization of 300mm silicon wafers and SOI products. We will accelerate the R&D of 300mm silicon wafer technologies for integrated circuit manufacturing by introducing, digesting, absorbing, and re-innovating existing technologies. We will cultivate a team of continuously innovative talents, establish an industrialized technology development system, and build scaled production capabilities. The technical level of our products will meet domestic integrated circuit manufacturing process requirements and enable mass applications. We will strengthen the construction of an industrial technology development system and foster endogenous innovation capabilities, elevating the overall technological level of 300mm silicon wafers to the advanced technology node requirements of integrated circuit processes, thereby meeting China’s demand for high-end silicon wafers in the integrated circuit industry and laying a solid technological and team foundation for the independent and controllable development of China’s large-diameter silicon wafer industry. Our domestic market share of 300mm silicon wafers will reach 50%. In line with global integrated circuit technology development trends and considering the stringent demands of China’s mobile smart terminals for chip power consumption and cost, we will timely develop 300mm fully-depleted FD-SOI wafer materials.

　　Second, we will build capacity for the preparation of photomask products used in integrated circuit manufacturing processes. We will master a comprehensive set of key technologies—including mask information processing, mask fabrication, defect detection, and defect repair—for integrated circuit lithography processes. We will also develop supporting technologies for substrate materials, protective films, and packaging boxes used in mask production, as well as new mask materials. Furthermore, we will establish a neutral institution for mask data analysis and processing, and construct a large-scale, high-end mask production base that supports the development of China’s domestic integrated circuit industry. This base will provide mask production and services to more than 90% of China’s high-end integrated circuit manufacturers, thereby ensuring the independent and controllable development of China’s integrated circuit industry.

　　Third, we will focus on the development and industrialization of advanced photoresist complete product lines as well as ultra-high-purity electronic gases. Specifically, we will prioritize the development of 193-nanometer dry and immersion photoresist preparation technologies to meet the requirements of 65nm, 45nm, and 20nm lithography processes. We will further enhance the industrialization technology level of 248-nanometer photoresists, strengthen the development of related product series, and deepen their application in integrated circuit manufacturing processes. We will accelerate the industrialization of photoresists for three-dimensional high-density packaging and promote the construction of production capacity to capture the domestic market for advanced packaging photoresists. We will also bolster the production capabilities of photoresist supporting products and key raw materials to provide comprehensive support for the development of China’s high-end photoresist industry. By then, the domestic market share of photoresists used in semiconductor manufacturing will reach 30%. In addition, we will focus on developing industrialization technologies for specialty electronic gases used in processes such as ion implantation, chemical vapor deposition, atomic layer deposition, and etching and cleaning. The purity and variety of these gases will meet the advanced process requirements of China’s integrated circuits, establishing large-scale production capacities. We will guide industry consolidation and corporate mergers and acquisitions to foster Chinese electronic gas companies that rank among the world’s top players and create distinctive Chinese brands for electronic gases. We will establish an engineering technology development base for specialty electronic gases to continuously support China’s independent innovation in the specialty gas sector. The technological level and supply capacity of domestically produced ultra-high-purity electronic gases will fully satisfy domestic integrated circuit manufacturing needs, with a market share exceeding 50%.

　　Fourth, we are developing and industrializing CMP polishing material products. Building on our existing industrialization technologies for polishing liquids, we will further expand our product portfolio to achieve comprehensive coverage of both the technical capabilities and product offerings for mainstream polishing liquids used in integrated circuit CMP processes. In response to the demands arising from advanced technology nodes and the development of new processes, technologies, and materials in integrated circuits, we will innovatively research and develop novel polishing liquids, providing material solutions for cutting-edge CMP processes and establishing a strong international presence in the CMP materials sector. We will also advance the development of various new polishing liquids tailored for three-dimensional silicon through-silicon vias (TSV) technology, maintaining our global leadership position. Furthermore, we will drive the development and industrialization of related products such as CMP polishing pads, diamond dressing wheels, and nano-abrasives for polishing liquids, thereby creating a systematically coordinated supply chain for key materials used in CMP processes. Our CMP polishing materials will achieve a 75% domestic market share.

　　Fifth, we will develop and industrialize technologies for sputtering targets and ultra-high-purity metal materials. We will master the core technologies for mass production of metal targets used in advanced integrated circuit manufacturing processes, thereby meeting the demand for sputtering targets in high-end IC fabrication. We will establish a large-scale production base for ultra-high-purity metal raw materials at the electronic-grade level, providing supporting supplies for domestic target material manufacturers. We will comprehensively enhance our supply and service capabilities for targets and related materials used in PVD processes for integrated circuits. We will guide enterprises to integrate international resources, scale up their operations, and cultivate internationally recognized target material brands. Our target products will achieve a domestic market share exceeding 70%.

　　Sixth, develop and industrialize specialized packaging material technologies. Focusing on the demands of advanced packaging technologies and green, environmentally friendly development, we will prioritize the industrialization of specialized packaging materials—including packaging substrates, lead frames, bonding wires, molding compounds, underfill materials, die attach materials, thermal interface materials, and supporting materials for advanced packaging processes—establishing an independent intellectual property system and production capacity, with core technologies reaching internationally advanced levels. We will foster leading enterprises and drive the development of several specialized companies, achieving a domestic market share of over 50% for these specialized packaging materials.

　　The seventh platform is a development platform for materials technologies and application processes used in wafer fabrication and packaging. Leveraging the material application process equipment already established by the company—including lithography, CMP, etching and cleaning, and advanced packaging—this platform will further enhance its capabilities and undergo technological upgrades to fully function as a materials application process testing platform. A shared, collaborative, and sustainable operational mechanism will be established for this application process testing platform, addressing the current challenge of small-scale enterprises lacking the resources to independently build such platforms and thereby accelerating the industrialization of materials technologies. Relying on the Integrated Circuit and Packaging Technology Leading Process R&D Center (or Institute), a materials application evaluation platform will be constructed. This platform will align with the material evaluation standards and procedures adopted by major IC manufacturing and packaging companies, accumulating data on the practical applicability of materials in various process applications. By filling the gap in process validation prior to materials entering large-scale IC manufacturing and packaging facilities, this platform will expedite the mass production and application of new materials.

　　Recommendations for measures

　　First, we must further substantively implement industrial policies. To encourage the development of the integrated circuit industry, the state has successively introduced a series of favorable policies, including the “Notice of the State Council on Issuing Several Policies to Further Encourage the Development of the Software and Integrated Circuit Industries” (Guofa [2011] No. 4). We hope that relevant departments will, in light of the objective laws governing the development of the integrated circuit materials industry, formulate substantive implementation rules to stimulate the innovation and development enthusiasm of integrated circuit materials enterprises. At the same time, we call for dynamic adjustments to tariffs and taxes on exports of domestically produced products and imports of foreign products. For materials products that can already be manufactured domestically, the import tax exemption should be abolished.

　　Second, we should establish an insurance fund to promote the domestic materials market. While some integrated circuit manufacturing enterprises have played a crucial supporting role in piloting the use of domestically produced materials, there is still a need to develop inclusive policies and take concrete measures—such as setting up an insurance fund for the application of domestically produced integrated circuit materials—to reduce the risks borne by integrated circuit companies when adopting such materials. Recently, the Ministry of Finance, the Ministry of Industry and Information Technology, and the China Insurance Regulatory Commission jointly issued the "Notice on Launching a Pilot Program for an Insurance Compensation Mechanism for the First (Set) of Major Technological Equipment." Under this initiative, equipment manufacturers will independently obtain insurance coverage, and the central government will provide appropriate subsidies to offset part of the premiums paid by insured enterprises, thereby leveraging fiscal funds to enhance the effectiveness of insurance, stimulate its role in risk-sharing through market-oriented approaches, and accelerate the promotion and application of major technological equipment. The domestic materials market promotion insurance fund could also draw on this example for implementation.

　　Third, we must concentrate resources on supporting leading enterprises. We should strengthen cooperation and coordination among relevant national departments and industry organizations, directing key funding for scientific and technological and industrial support in the integrated circuit materials sector toward these leading enterprises. Based on the planning and development needs of these leading enterprises, we should carry out industrial technology R&D and leverage them as platforms for industry-academia-research collaboration, thereby enhancing the industry’s innovation capabilities. In addition, we should introduce special preferential policies—such as tailored personal tax incentives, favorable treatment for children’s school enrollment, and subsidized home purchases—specifically aimed at the core teams of these leading enterprises, encouraging high-end talent to flock to them and bolstering their core competitiveness.

　　Fourth, we should guide industry consolidation and the development of domestic and international mergers and acquisitions.

　　Fifth, we must strengthen the construction of a legal framework for intellectual property protection and rights enforcement.

　　Sixth, we must strengthen the introduction of diverse talents and international cooperation.

　　Seventh, we should establish a green channel for initial public offerings (IPOs) of integrated circuit equipment and materials enterprises.