Newway Photomask(688401)2024-10-23 09:24Group 1: Market Context and Demand - The semiconductor mask is a core material for photolithography micro-nano processing, directly affecting the quality and yield of end products. The demand for domestic substitution is driven by the urgent need for supply chain autonomy in the semiconductor industry [1] - Since the trade friction in 2018, there has been increased awareness of the lack of hard technology, prompting various stakeholders to promote the localization of core semiconductor technologies [1][2] Group 2: Current Capabilities and Development - Currently, China's domestic chip manufacturing capabilities are relatively weak, with key upstream materials like masks still heavily reliant on imports. Domestic mask manufacturers mainly focus on packaging masks and those for wafer manufacturing at nodes above 130nm, showing a significant gap compared to international leaders [2] - The company is expanding its manufacturing capabilities from packaging to semiconductor device and chip manufacturing, focusing on process nodes of 250nm/180nm, with CD precision controlled at 50nm, and gradually advancing towards 150nm/130nm and below [2] Group 3: Competitive Advantages - Independent third-party mask manufacturers provide better information security for downstream clients and have richer industry experience and mature product solutions due to nearly 30 years of service [2] - Cost advantages exist for independent third-party mask manufacturers, as wafer fabs prefer to procure from them for cost considerations, especially as technology levels improve [2] Group 4: Project Updates - The Jiangsu Luxin project involves an investment of 2 billion yuan, divided into two phases, with the first phase planned for 40nm and above mask production and the second phase for 28nm and above. Upon completion, it will have an annual production capacity of approximately 35,000 masks [3] - The project is set to begin equipment installation in Q4 2025, with mass production expected to start in 2025 [3] Group 5: Technical Insights - The production equipment for 90nm masks cannot cover the production of 40nm masks, while equipment for 40nm and above can fully cover 90nm masks. Both require electron beam lithography and dry process technology [3]