Attention all investors
In the process of domestic substitution in the semiconductor industry, besides the well-known leading companies, some companies focusing on niche areas with unique technological paths are quietly rising as “hidden champions”.
China’s goal for semiconductor equipment localization rate has been raised to 50%.
This article selects six unique and niche core players in the domestic substitution field, who are reshaping the semiconductor industry chain through “point breakthroughs + ecological collaboration”. As domestic substitution accelerates, they are expected to grow into global leaders in their respective fields within 5-10 years.
With the dual benefits of policy and industry, they are likely to be the biggest beneficiaries, especially the last company, which deserves special attention!
1. Tuojing Technology (688072)
Core area: Thin film deposition equipment (PECVD, ALD, SACVD, etc.) and hybrid bonding equipment.
Technical highlights:
The only company in China to achieve mass production of PECVD and ALD equipment, with over 1,940 reaction chambers shipped, entering more than 70 production lines.
The hybrid bonding equipment (wafer-to-wafer, chip-to-wafer) is the first domestic model, with performance reaching international advanced levels, applied in 3D integrated chips and Chiplet technology.
Market position: Thin film deposition equipment is one of the three main equipment in chip manufacturing alongside photolithography and etching machines, with Tuojing holding about 15% market share in the PECVD field, ranking first in China.
Policy support: Undertakes 9 national major projects and has been rated as one of the “Top Five Semiconductor Equipment Companies in China”.
2. Xinyuan Micro (688037)
Core area: Coating and developing equipment for photolithography processes, single-wafer wet processing equipment.
Technical highlights:
The only company in China that can provide front-end coating and developing machines, with 28nm ArFi process equipment having passed customer acceptance.
Coating and developing equipment has sold over 1,500 units, with customers including TSMC and SMIC, holding about 12% market share in China.
Market position: Over 50% market share in the LED and advanced packaging fields, breaking the monopoly of Tokyo Electron in Japan.
Uniqueness: Achieved core component localization through an “introduction-digestion-innovation” model, starting from Korean technology, gradually reducing costs by 90%.
3. Dinglong Co., Ltd. (300054)
Core area: CMP polishing pads, PBO monomer materials.
Technical highlights:
Domestic market share of CMP polishing pads exceeds 60%, breaking the monopoly of Cabot in the USA, covering the entire process for logic chips and memory chips.
PBO monomer materials are the only mass-produced supplier globally, used in Huawei’s foldable phone back panels, outperforming carbon fiber without affecting 5G signals.
Market position: The localization rate of CMP polishing pads has increased from 0% in 2018 to 35% in 2024, with Dinglong contributing over 80% of the share.
Policy support: Selected as a “specialized, refined, distinctive, and innovative” small giant enterprise by the Ministry of Industry and Information Technology, undertaking the national 02 project.
4. Anji Technology (688019)
Core area: CMP polishing liquids, photoresist stripping liquids, electroplating liquids.
Technical highlights:
Domestic market share of CMP polishing liquids is about 25%, covering all categories including copper, tungsten, and dielectric materials, applied in Yangtze Memory and SMIC.
Photoresist stripping liquids have been validated by TSMC, replacing Japanese JSR products, with purity reaching PPT level.
Market position: Expected revenue of 1.56 billion yuan in 2024, a year-on-year increase of 42%, with R&D investment accounting for 18%, and high technical barriers.
Policy support: Plans to issue 830 million yuan in convertible bonds in 2025 for the expansion of production bases in Shanghai and Ningbo.
5. Tianyue Advanced (688234)
Core area: Silicon carbide (SiC) substrates.
Technical highlights:
Mass production of the world’s first 12-inch conductive SiC substrate, with an area 2.25 times that of 8 inches, improving utilization by 2.5 times.
Low-resistance P-type substrates (resistivity <200mΩ・cm) produced by liquid phase method, promoting the application of SiC-IGBT in smart grid fields.
Market position: Domestic market share of SiC substrates is about 30%, ranking among the top five globally, with customers including Infineon and ON Semiconductor.
Policy support: Participated in the formulation of the national standard for “Silicon Carbide Substrates” and received investment from the National Big Fund Phase II.
6. Most Potential
Core area: Semiconductor storage testing equipment.
Technical highlights:
The only company in China to achieve mass production of AMOLED display testing equipment, with precision reaching 0.1μm, replacing Korean IT&T.
Storage testing equipment has entered the supply chain of Yangtze Memory and Changxin Memory, supporting 3D NAND stacking tests.
Market position: Display testing equipment market share is about 15%, while the localization rate of storage testing equipment is less than 5%, indicating significant growth potential.
Policy support: Received investment from the National Manufacturing Big Fund, undertaking the “New Display Testing Equipment” project.
Aligns with the next round of speculation hotspots, with strong main control, and the technical form is close to perfection, just waiting for the right moment to take off!
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All content in this article is sourced from public information,and any opinions expressed do not constitute investment advice. Any actions taken based on this information are at your own risk. Investment carries risks, and caution is advised when entering the market!