Dongwu Securities: Advanced Manufacturing Processes Increase Material Value and Accelerate Localization of Fluorinated Semiconductors

The Zhitong Finance App learned that Dongwu Securities released a research report saying that domestic substitution of high-end fluorine-containing materials continues to advance, and is optimistic about companies that have the underlying platform capabilities of fluorine chemicals and achieve customer certification and scale scaling in high-end categories such as electronic grade HF, HFE/PFPE, WF6/C4F6, and PFA/FFKM; it is recommended to focus on Xinzhoubang (300037.SZ), Tianci Materials (002709.SZ). It is recommended to focus on Sanzhoubang (603663.SH), Juhua Co., Ltd. (600160.SH), Zhongjuxin (688549.SH), and Jacques Technology (002409.SZ), Haohua Technology (600378.SH), CSIC (688146.SH), Anji Technology (688019.SH), polyfluoride (002407.SZ), etc.

The main views of Dongwu Securities are as follows:

Advanced manufacturing processes improve the intensity of use of semiconductor chemicals, and the value elasticity of high-end photoresists, electronic specialty gas, and domestic replacement space are more prominent

According to SEMI, the global semiconductor chemicals market is expected to exceed 20 billion US dollars in 2026, of which electronic gases and wet electronic chemicals account for about 31% and 19%, contributing the main basic value. As the production capacity of ≤7nm advanced processes grows faster than the industry as a whole, the number of lithography, etching and CMP cycles has increased, driving a simultaneous increase in the amount of material used per wafer and the proportion of high-end products. By category, the marginal influence of advanced manufacturing processes on photoresists, CMP, and electronic specialty gases is more obvious; in terms of domestic substitution, the overall localization rate of wet chemicals is expected to reach 50%-60% in 2025, while the localization rate of KrF/ArF photoresists is expected to be less than 3%/1%. The localization rate of electronic specialty gases is expected to be about 25%. High-end photoresist and electronic specialty gas are still the direction where there is more room for domestic substitution.

Fluorinated liquid and hydrofluoric acid: 3M withdraws to open a PFPE/HFE replacement window. HF is driven by wafer expansion and higher gradation

PFPE is mainly used for temperature control of semiconductor equipment. 3M announced its withdrawal from PFAS manufacturing at the end of 2022. The bank expects 3M to account for about 80% of the global semiconductor temperature control liquid at the time (in terms of production); after officially withdrawing at the end of 2025, the original share will begin to be redistributed, and Xinzhoubang can take on the main share. The bank expects PFPE demand of 12,000 tons and a market space of 6.3 billion yuan in 2030, and domestic manufacturers with mass production and equipment certification capabilities are expected to accept the share. HFE is mainly used for semiconductor and precision electronic cleaning. After 3MNoVec withdrew, overseas markets are still dominated by AGC, Chemours, etc.; the bank expects global demand of 0.76 million tons and a market space of 1.44 billion yuan in 2030, and the competitive focus will shift to customer certification and stable supply. Electronic-grade HF is driven by increased wafer delivery, increased share of advanced/storage, and G5/G5+ penetration. The bank expects demand of 270,000 tons and a market space of 5.4 billion yuan in 2030. High-grade effective supply is still constrained by purification, clean packaging, and customer certification.

Fluorine-containing electronic special gas: the focus of demand was upgraded from mature cleaning gas to advanced etching/deposition gas. WF6 and C4F6 supply and demand are tight, and volume and price elasticity is outstanding

WF6 is used for CVD/ALD tungsten deposition, driven by advanced storage, logic metallization and overseas supply disturbances. The bank estimates that global demand will increase from about 0.94 million tons to 193,000 tons in 2025-2030, and the market space will increase from 10.3 billion yuan to 22.1 billion yuan; supply and demand will remain tight in 2026, and the product price center will move upward. In 2026, China Shipbuilding Special Gas has a 6N production capacity of 2,000 tons. The bank is expected to start production in 2027. C4F6 is used for high depth-to-width media etching. Driven by advanced logic, HBM and 3D NAND, the bank estimates that global demand will increase from 0.2-30,000 tons to 60,000 tons in 2025-2030, and the market space will increase from 5.5 billion yuan to 14 billion yuan; in 2026, the effective demand for grade 5N is about 0.22 million tons, and there is a gap between supply and demand. Domestic Haohua Technology, China Shipbuilding Special Gas, etc. have formed production capacity or small-batch supply.

Fluoropolymers: PFA and FFKM are highly elastic, and high-end effective supply is still constrained by purity, clean processing and certification systems

PFA is the core structural material for wet processes. It is used in pipelines, valves, joints, tanks and filter housings of wet process equipment; in 2025, the global demand for semiconductor-grade PFA is about 20,000 tons, and the bank expects the demand for ultra-pure PFA to reach 40,000 tons in 2030. As of 2026H1, the nominal production capacity of Chemu+Daikin accounts for 40% + of the world's PFA nominal production capacity, and domestic megacities have gradually broken through. PTFE is used the most, and there is sufficient domestic supply in the middle and low end, but ultra-pure grades still depend on overseas. FFKM is a key sealing material for etching and deposition equipment. The bank expects global demand for semiconductor-grade raw rubber to be around 200 tons in 2026. Overseas high-end seals are dominated by DuPont, Greene Tweed, etc., and domestic Juhua and Dongyue are being rapidly replaced, but the effective production capacity in 2025 is only 8-10 tons, and subsequent release volume still depends on low precipitation, batch consistency, and advanced process certification.

Risk warning: downstream demand falls short of expectations; price competition intensifies; customer certification or production expansion progress falls short of expectations; environmental protection and PFAS regulations are becoming stricter.