Japan Accelerates Semiconductor Process Market Share... Domestic Technology Still 'Scarce'

[Asia Economy Reporter Jang Hyowon] Recently, Japanese semiconductor material company JSR acquired the U.S. extreme ultraviolet (EUV) photoresist (PR) company 'Inpria.' Inpria is a U.S.-based EUV PR company in which Samsung Electronics and SK Hynix have invested, holding a market share exceeding 90%.

This means that the major supply chain of PR, one of the three core semiconductor materials (photoresist, hydrogen fluoride, fluorine polyimide), has shifted to Japan's JSR.

Although Korea has been recognized as a semiconductor powerhouse worldwide, since Japan's export restrictions in 2019, the dependence on Japanese imports for core materials has remained a continuous challenge for improvement.

Of course, domestic companies have also achieved remarkable results in the localization technology of core semiconductor materials. Dongjin Semichem succeeded in developing argon fluoride (ArF) photoresist, and SK Materials has started mass production of ultra-high purity hydrogen fluoride gas.

Technology small giant Technium has succeeded in localizing key photoresist components such as crosslinker and PAC (Photo Active Compound), which had depended on Japanese imports, and is establishing its own production line with its parent company Yapex.

Fluorine polyimide production capacity has also been established by Kolon Industries, and SKC is conducting tests alongside building a large-scale factory. All these achievements came within just over a year after Japan’s export restrictions, which had posed a red light to the domestic semiconductor industry.

According to the Ministry of Trade, Industry and Energy, from January to April this year, the proportion of Japanese products in Korea’s cumulative imports of materials and components was 15%, amounting to $9.696 billion. This is the lowest figure since 2001. Major domestic semiconductor companies are also recognizing the need for localization technology within their processes and are working to reduce import dependence.

An industry insider said, “Localization of semiconductor materials and components, centered on domestic technology small giants, has achieved results exceeding expectations in a short period,” but added, “Nevertheless, since the market share of existing Japanese material companies, which have long been relied upon for imports, remains very high and localization technology is still scarce, continuous mid- to long-term investment is necessary to lead to visible results.”

Meanwhile, the global semiconductor market size is expected to grow by about 17% this year as well. IDC forecasts that the global semiconductor market, driven by demand from mobile, laptops, automobiles, and gaming, will reach $600 billion by 2025, recording an average annual growth rate of 5.3%.

This content was produced with the assistance of AI translation services.