Japan’s Influence on Semiconductor Photoresist Supply: A Focus on South Korea’s Response

Summary:

• Japan holds a significant market share in the production of advanced EUV photoresist, crucial for semiconductor manufacturing.
• Despite claims of self-sufficiency, South Korean companies still heavily depend on Japanese suppliers for EUV photoresist materials.
• Collaborations between South Korean firms aim to replace and enhance existing products to boost production efficiency in memory chip manufacturing.

Recent developments have emerged regarding the supply of photoresist materials, a critical component in semiconductor manufacturing. While Japan has denied any intentions to cut off its supply, the reality paints a different picture. Japanese companies dominate the production of advanced Extreme Ultraviolet (EUV) photoresist, creating a dependency for many semiconductor manufacturers, particularly in South Korea.

Key players in the Japanese photoresist market include JSR, Shin-Etsu Chemical, and Tokyo Ohka Kogyo. Tensions between Japan and South Korea in recent years have led to restrictions, with Japan halting the export of essential materials, including photoresist, to its neighbor. This geopolitical backdrop has forced South Korea to accelerate its efforts in localizing core semiconductor technologies, aiming for greater self-sufficiency.

While it has been reported that South Korea has made strides in advancing its EUV photoresist capabilities, the reality remains complex. Instead of achieving complete independence, South Korean companies continue to rely on Japanese suppliers. Recent strategies involve circumventing export restrictions by shifting procurement from Japanese domestic supplies to overseas sources, indicating that giants like Samsung and SK Hynix are still dependent on Japan for EUV photoresist.

Unlike Samsung, which focuses broadly on various semiconductor products, SK Hynix’s primary specialization lies in memory chips. Historically, the demand for EUV photoresist from this segment was modest. However, advancements in technology necessitate the extensive use of EUV photolithography, pushing SK Hynix to seek innovative solutions.

In light of these challenges, SK Hynix has partnered with Dongjin Semiconductor, a South Korean company, to co-develop EUV photoresist. This collaboration has a dual goal: not only to replace the reliance on Japanese photoresist but also to enhance performance, particularly in photosensitivity, thereby improving production efficiency.

Enhanced photosensitivity leads to shorter exposure times during the photolithography process, which directly translates to increased production efficiency. Even with identical EUV lithography machinery, production capacities can vary significantly based on the quality of the employed photoresist. As memory chips continue to trend towards 10nm and below, the demand for EUV lithography layers has also escalated—presently at seven layers for the seventh-generation 1D process, with expectations for further increases.

This evolving landscape of supply and technology underscores the ongoing rivalry and interdependence in the semiconductor industry. As South Korea continues its pursuit of technological self-sufficiency, the reliance on Japanese photoresist highlights the complex dynamics at play.

In conclusion, as geopolitical tensions shape the semiconductor landscape, understanding the intricate dependency on photoresist supply is crucial for long-term strategic planning in this critical industry.