Chinese media outlet Guancha.cn published an article on the 11th about the ongoing struggle between Japan and China concerning semiconductors.

The article pointed out, "In semiconductor manufacturing, lithography equipment and photomasks are fields that tend to attract attention, but the critical foundational component is mask blanks." It stated, "These are high-purity quartz glass substrates before circuit patterns are written, and they are components located at the very upstream of the semiconductor manufacturing process. As China's semiconductor industry promotes localization, the self-sufficiency of these mask blanks is currently a major challenge."

It then explained, "Mask blanks are high-purity quartz glass about the size of a palm, requiring nanometer-level flatness and extremely high control capabilities. By forming light-shielding films and anti-reflection films on their surfaces and writing circuit patterns with electron beams, they are processed into photomasks used in semiconductor manufacturing."

Furthermore, it reported, "As semiconductors become more miniaturized, the cost and importance of photomask manufacturing increase. For the 14-16 nanometer generation, the cost of a full set of photomasks is approximately $5 million (about 810 million yen), rising to approximately $15 million (about 2.43 billion yen) for 7 nanometers. For the 5 nanometer and 3 nanometer generations, costs can reach $10 million to $40 million (about 1.62 billion to 3.24 billion yen), posing a significant burden on semiconductor development. For EUV mask blanks, there are cases where a single blank costs over $100,000 (about 16.2 million yen)."

The article noted that before 2020, the number of photomask manufacturers in China was limited to a few companies, and for advanced products below 28 nanometers, there was continued reliance on Japanese and U.S. companies. However, it mentioned that the situation has changed significantly in the subsequent five years. "The number of photomask manufacturers in China has increased to over 15 companies, and investments worth billions of yuan are successively being made. Mass production of products for 90 nanometers and 65 nanometers is progressing, and some companies are also advancing development with the 28 nanometer generation in mind. According to sources, for photomasks used in mature processes, Chinese companies are approaching a level where they can compete with major Japanese and U.S. manufacturers."

On the other hand, it pointed out that the localization of mask blanks, which are in the pre-photomask manufacturing stage, is significantly lagging. "The demand for mask blanks in China is said to be about 120,000 sheets per month, but the supply capacity of domestic companies remains at only several thousand sheets per month, with a localization rate of around 2%. Currently, for i-line and KrF mask blanks, Japan's HOYA and Shin-Etsu Chemical Co., Ltd. hold a large share, and the dependence on both companies is even higher for ArF. EUV mask blanks are subject to export controls and cannot be used in China."

The article mentioned that for China's semiconductor industry, this issue is a structural challenge in the supply chain. It explained, "While photomask manufacturers are processing companies that write circuit patterns onto mask blanks procured from overseas, mask blank manufacturers require material technologies accumulated over many years, such as high-purity quartz glass manufacturing, precision polishing, thin film formation, and defect inspection. The strength of Japanese companies lies in this vertically integrated industrial structure, having built the entire supply chain over several decades."

It then stated that "defect management technology" is particularly important, pointing out, "Even minute defects at the nanometer level in mask blanks are repeatedly transferred during semiconductor manufacturing, leading to a large number of defects. Therefore, it is not simply about whether production is possible, but whether high-quality products can be supplied stably that determines competitiveness." It argued, "Chinese companies are also making progress, with some achieving results in substrate development and ultra-precision processing, and there are movements to enter the supply chain of Japanese manufacturers. However, for high-performance mask blanks for advanced processes, the gap with Japanese companies remains large."

The article listed three directions for China to achieve breakthroughs in this field in the future: "long-term research and development investment in research institutions and startups," "joint development with semiconductor manufacturers (fabs)," and "breakthroughs centered on inspection technology." Regarding inspection technology, it stated, "Japanese companies' strength lies in defect inspection technology. If China can establish its own inspection equipment and evaluation system, there is a possibility of breaking away from the situation of relying on Japanese products as the standard."

It then emphasized, "China's semiconductor industry has overcome the challenge of photomasks in the past five years. Whether it can overcome the challenge of mask blanks in the next five years will determine the ultimate outcome of this industrial competition." (Translation/Editing by Kitada)