This Chip Supplier Finds China Struggling With Cutting-Edge Chipmaking Tech Development

  • Leading supplier of materials critical for semiconductor production, JSR CEO said a lack of industry infrastructure would make it “very difficult” for China to develop cutting-edge chipmaking technology despite a push for self-sufficiency, the Financial Times reports.
  • Semiconductors, essential to products from smartphones to washing machines, have become a focus of competition between the U.S. and China.
  • Johnson said, “leading-edge capability takes decades and a lot of money to develop . . . you really need applications like the Apple Inc AAPL iPhone to pay for the stuff”. 
  • Eric Johnson expected chip sector supply bottlenecks to continue into 2023.
  • Johnson said China would struggle to master the sophisticated chipmaking technology based on extreme ultraviolet or EUV lithography.
  • EUV lithography is a highly demanding process using light for etching minuscule integrated circuits onto silicon wafers.
  • Analysts said JSR has 30%-40% of the global market for photoresists to make advanced chips and counts Samsung Electronics Co, Ltd SSNLFTaiwan Semiconductor Manufacturing Company Ltd TSM, and Intel Corp INTC among its customers.

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