Due to the sharp increase in demand based on mature processes, photoresist inventory fell below the “Maginot line of defense”

According to South Korean technology media ETnews, the supply and demand of semiconductor photoresist has entered a state of emergency, and the inventory has dropped to the “Maginot Line of Defense”——Below 3 months level. This is because the demand for mature technology has increased sharply, but the supply has not kept up. At the same time, this is also the result of not getting rid of the dependence on Japanese suppliers.

Photoresist inventories at some foundries have been reduced to a two-month supply, down from the usual three-month supply, the report said. If the photoresist supply crisis persists, the market fears that semiconductor production will inevitably be disrupted due to insufficient inventories.

Products with increased supply difficulties are mainly used formature technologyof photoresists, including from I-line to krypton fluoride (KrF). Although not like Japan’s export restrictions – photoresist for cutting-edge processes such as extreme ultraviolet (EUV), its market share is very large, including exposure processes for 8-inch wafer products that are in short supply, and 3D NAND flash memory (KrF).

This means that the photoresist shortage will not only affect the foundry industry, but also the production of memory.

The report pointed out that the supply shortage is mainly due to the capacity constraints of Japanese photoresist manufacturers, mainly Shin-Etsu Chemical. Shin-Etsu Chemical predicts that it will not be able to meet current supply demand even if it starts up its new plants in Japan.

In addition, rising photoresist prices in Japan are also a risk factor. According to the import and export trade statistics of South Korea Customs, the average price (per ton) of photoresist imported from Japan in South Korea last year increased by more than 16% compared with the previous year.