Rooted in the Local, Reaching Out to the World—Reflections on the Growth of China’s Emerging Semiconductor Materials Enterprises

　　I. A Decade of China’s Emerging Semiconductor Materials

　　Over the past decade, China’s semiconductor materials sector has seen the emergence of a number of promising new semiconductor material companies, including Jiangfeng Electronics, Shanghai Xin'ao, Shanghai Xinyang, Nanda Optoelectronics, Beijing Kehua, and Anji Microelectronics. These domestically nurtured Chinese materials firms have gone through an initial phase marked by boldness and hardship, endured the confusion and struggles during the global financial crisis, and since 2009 have entered a turning point toward positive development. Over the past ten years, they’ve gained valuable experience in growth and successfully navigated the challenges of survival. The 2011 Japanese tsunami prompted the global semiconductor industry to rethink the reliability and sustainability of its supply chains—and this has brought new opportunities for China’s domestic materials companies. We’ve become increasingly aware of these issues and have also developed the capability to venture abroad, seeking broader yet more challenging overseas markets! This marks a significant milestone: after a decade of development, China’s semiconductor materials companies have now entered a brand-new era of growth and advancement!

　　II. Current Status of Domestic Semiconductor Material Enterprises

　　Over the past decade, thanks to the concerted efforts of domestic material enterprises themselves and the strong support from Special Project 02, the overall performance of these enterprises has been on an upward trajectory. Specifically, their business scale and scope have expanded, their teams have become more mature, and their capacity for survival and growth has significantly improved. Starting from initially entering the market by offering substitutes for established technology nodes, these enterprises have gradually begun to engage in the development of cutting-edge technology products, steadily narrowing the gap with international advanced levels. The brand effect of domestic companies is beginning to take shape, and their products have taken their first steps into the global market. Semiconductor materials branded “Made in China” are now being recognized by industry leaders such as Intel and TSMC. Chinese material enterprises have shifted from previously being “passively” squeezed into the market by users to a new situation in which users are “actively” inviting them to collaborate.

　　III. Challenges and Opportunities Faced

　　As China’s semiconductor materials companies rapidly develop, the difficulties and bottlenecks in our own growth have also begun to surface, primarily in the following areas:

　　In terms of operations, systematic management is becoming increasingly important. Capacity expansion, enhanced R&D capabilities, team building, and the establishment of training programs are all progressing in parallel. A sufficiently broad technological and talent platform is needed to support enterprises as they expand their customer base overseas and enable them to deliver remote services to international markets. How can we keep pace with the rapid advancements and cyclical growth of new integrated-circuit technologies? How can we further broaden our coverage in the domestic market? And how can we ensure that we have sufficient strength and resources to venture abroad?

　　In terms of technological development, new technologies and applications are emerging continuously. The extension of Moore’s Law, three-dimensional integrated circuits (TSV), large-size wafers, novel devices, and advanced materials are constantly introducing fresh innovations, presenting material companies with new opportunities while also bringing with them increasingly higher challenges. Take the CMP polishing process as an example: this process has expanded from its original mature stage of 3–4 steps to today’s nearly 20-step process for nodes at or below 20 nanometers—a level of technical complexity that is unprecedented. The 20/14nm integrated circuit technology revolutionarily introduced FinFET devices, in which the height dimensions of all fin structures within a chip must be defined in a single CMP polishing step. This places extremely stringent demands on the removal rates and selectivity ratios for different materials, as well as on surface roughness and defect levels—all measured down to the angstrom scale (molecular level). The magnitude of these challenges is readily apparent.

　　In terms of the market, the characteristics of being driven by regional and key accounts remain prominent. Take chemical-mechanical polishing slurries as an example: in 2012, the global market for CMP slurries used in integrated circuits was approximately US$1 billion, with an annual growth rate of nearly 20%. Most of this market is concentrated overseas, with the domestic Chinese market accounting for less than 10%. Moreover, China’s technology nodes lag behind those of other regions by one to two generations. Therefore, while continuing to serve domestic customers effectively, Chinese semiconductor materials companies need to move more rapidly into overseas markets—both from the perspective of their own development’s depth and breadth. For us, this presents both challenges and opportunities simultaneously.

　　IV. Case Illustration

　　Take Anji Microelectronics as an example: technological innovation and cost advantages are the core competitive strengths of the company’s products. Over the years, Anji Microelectronics has successfully developed technologies such as copper/barrier layer and silicon dioxide slurries, through-silicon vias, and photoresist strippers. Its core products have now reached end-users and are being sold in volume. Among these, the copper/barrier layer and silicon dioxide slurries boast high planarization efficiency, high grinding rates, low defect rates, and significant cost advantages. The through-silicon via products feature leading-edge technology and a diverse product portfolio. The photoresist strippers offer high removal rates and cost-effectiveness. With its solid technological foundation, extensive experience in serving customers, price competitiveness, and rapid responsiveness, Anji Microelectronics has earned wide recognition from users in the market and has begun taking its first steps toward global expansion.

　　In recent years, with strong support from the “02 Special Project” and the Materials Alliance, Anji Microelectronics established an 8-inch CMP slurry R&D platform during the implementation of the “11th Five-Year Plan,” achieving a breakthrough in the industrialization of domestically produced integrated circuit polishing slurries. These products have been successfully deployed in large-scale production lines. Following that, through the implementation of the “12th Five-Year Plan,” Anji Microelectronics built a 12-inch polishing slurry R&D platform, and its products have been successfully adopted in 45/40nm production lines. Products for the 28nm process node are currently being jointly developed with SMIC, and these products have also been adopted by leading international customers. Anji Microelectronics is now recognized by top-tier industry players as a leading Chinese supplier of integrated circuit polishing slurries.

　　With the nation’s continued support for 20/14nm integrated circuit process technology, Anji Microelectronics will tackle the new challenges posed by the industry’s shift from planar to 3D architectures in terms of polishing and cleaning, and develop a series of polishing and cleaning solutions tailored to the specific requirements of FinFETs. On its path toward becoming an internationally competitive supplier of integrated circuit materials, Anji Microelectronics is set to take another significant step forward.

　　V. Some Reflections on Enterprise Development

　　The path to enterprise growth and prosperity is a spiraling upward journey marked by continuous pursuit of opportunities, courageous embrace of challenges, and effective resolution of difficulties. What exactly constitutes a company’s competitive edge? How should products, technologies, and markets be strategically positioned? These are fundamental questions that every entrepreneur must constantly reflect upon. Beyond merely providing high-quality products and services to domestic users, how can we step onto the global stage, integrate into international industry platforms, and stay attuned to industry and technological trends? How can we scale mature technologies while ensuring their long-term sustainability? How can we foster mutual cooperation among industry players—leveraging complementary core technologies and products, embracing cultural synergy, and achieving both independent development and strategic alliances? And how can we dramatically enhance our enterprises’ growth rate and resilience against risks? With the collaborative support and backing from the “02 Special Project,” the Materials Alliance, end-users, and investors, we firmly believe that China’s indigenous semiconductor materials industry will enter a glorious new era! A group of emerging domestic semiconductor materials companies will undoubtedly carve out their own distinct place on the global map!