Chinese semiconductor industry experts and executives express confidence in handling potential Japanese restrictions on photoresist exports to China, highlighting domestic alternatives and supply chain diversification. No production disruptions have been reported so far.
Market speculation has emerged that Japan may restrict exports of photoresist—a light-sensitive material essential for etching microscopic circuits onto silicon wafers in semiconductor manufacturing—to China. Japan holds over 70 percent of the global photoresist market, according to Nikkei, and this potential action is seen as a response to China's recent ban on exporting dual-use items to Japan.
Voices from China's semiconductor ecosystem convey calm and confidence, backed by domestic substitution and supply chain diversification. Yi Rongkun, general manager of Xiamen Hengkun New Material Technology Co Ltd, told China Daily: "From the actual situation on the market end, we have not heard of any customer production being affected so far." He added that the industry consensus remains to "prepare for rainy days and prevent worst-case scenarios."
Sources from leading Chinese chipmakers Semiconductor Manufacturing International Corp and Huahong Group informed China Daily that no ban exists yet and highlighted "significant progress" in domestic photoresist production. Jiangsu Nata Opto-electronic Material, which developed one of China's first self-made ArF DUV photoresists, reported revenue exceeding 10 million yuan ($1.43 million) from ArF photoresist in 2024 and maintained stable supply in 2025.
Financial markets showed optimism on Thursday, with shares in photoresist-related firms opening sharply higher. Shanghai Pret Composites Co Ltd surged by the daily limit of 10 percent, while Jiangsu Nata Opto-electronic Material and Anhui Guofeng New Materials Co Ltd also posted substantial gains.
Roger Sheng, vice-president of research at Gartner, stated: "We believe there must be contingency plans for Japanese chip-related products, if Japan retaliates. Photoresist, materials, equipment—there must already be alternative substitution plans." He noted options from South Korean suppliers and clarified that the needed photoresist is not at the EUV level. He Hui, semiconductor research director at Omdia, said any cutoff would accelerate China's local self-sufficiency, with imports possible from South Korea or elsewhere. She drew parallels to Japan's 2019 restrictions on materials to South Korea, which spurred that country's supply chain independence.
An unnamed executive from a Chinese semiconductor equipment firm remarked: "Even if it were real, it would be fine. Our capacity to withstand this is stronger than South Korea's." Experts suggest such pressures will hasten China's photoresist sector growth and end reliance on single foreign supply chains.
