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In the field of semiconductor equipment components, advanced ceramics play a critical role. They account for approximately 16% of the value, with a global market space of 40 billion RMB. These are core, key components, with high technical barriers and processing difficulties. Among high-end ceramic components, ceramic heaters and electrostatic chucks represent a significant portion, with the domestic market size around 3 billion RMB. However, the current domestic substitution rate is less than 10%, and this sector is heavily "choked" by Japan and the United States, severely restricting the development of the domestic industry.

Dependency on Imported Ceramic Components, Urgent Need for Domestic Substitution

Among the companies in the field of advanced ceramic structural components, global leaders include Kyocera, NGK Insulators, Japan's Special Ceramics, Morgan Advanced Materials, CeramTec, and CoorsTek. These companies, with their long-standing history, lead in terms of product variety, business scale, and technological strength. Having entered the industry early and accumulated deep technical expertise through years of industry development, they are far ahead of domestic companies, which still face significant gaps in experience across multiple application fields, specific product development, industrialization, and large-scale manufacturing capabilities. However, it is encouraging to note that domestic companies have made progress, with some key indicators of certain product lines already reaching global mainstream levels. They are gradually making technological breakthroughs. Currently, several domestic manufacturers are actively involved in the production of electrostatic chucks and ceramic heater discs, accelerating the process of domestic substitution of high-end ceramic components.

US and Japan Export Controls Driving Strengthened Domestic Policies

On October 7, 2022, the US Department of Commerce's Bureau of Industry and Security (BIS) announced new export control regulations against China, upgrading sanctions in advanced chip manufacturing, semiconductor equipment, components, and materials. On May 23, 2023, Japan's Ministry of Economy, Trade, and Industry (METI) issued an ordinance, formally implementing export controls on 23 types of semiconductor manufacturing equipment (or items), which took effect on July 23, 2023. These control measures are highly targeted, focusing on specific materials and processes related to advanced manufacturing. From 2016 to 2022, approximately 35% of the equipment procured by major domestic wafer fabs came from US and Japanese suppliers, with US thin-film deposition and etching equipment accounting for around 50%.

After the US implemented semiconductor export restrictions in October 2022, certain equipment and components could no longer be sold to domestic advanced customers. If the substitution of consumables like ceramic heaters and electrostatic chucks is hindered, it could lead to production line disruptions. In this context, the urgent need for domestic substitution of ceramic components has become critical, offering domestic manufacturers an opportunity to validate their technologies and achieve breakthroughs. In recent years, China has introduced a series of policies encouraging and supporting the development of advanced ceramics, semiconductor equipment industries, and downstream sectors, creating a favorable environment for industry growth. The future development prospects of the domestic semiconductor ceramic component industry are promising.

Domestic Companies Accelerating Layout and Seizing Development Opportunities

In this wave of industry development, domestic companies are accelerating their strategies. In addition to advanced ceramic materials companies such as Kema Technology (301611, market capitalization of 30 billion RMB), Shenzhen Xinxing (603978) announced on the evening of December 9, 2024, that the company had signed an investment agreement with Zhejiang Hongxin New Materials Co., Ltd. (referred to as "Hongxin Semiconductor"). Both parties reached a consensus to invest in the establishment of a joint venture, Ganzhou Puyi Ceramic Semiconductor Materials Co., Ltd., with a registered capital of 10 million RMB. Shenzhen Xinxing will contribute 7 million RMB in both cash and physical assets, holding a 70% stake, while Hongxin Semiconductor will contribute 3 million RMB in cash, holding a 30% stake. The two companies will cooperate deeply to replace imported high-cost ceramic materials (alpha spherical alumina) and work toward large-scale production and widespread application of ceramic materials, injecting new vitality into the development of domestic advanced ceramic materials in the semiconductor field.