1

Technology upgrade drive: process miniaturization and process complexity

1. Process node iteration increases CMP steps

The reduction of chip feature size (such as below 7nm) and the increase of 3D stacking layers (such as NAND flash memory up to 232 layers) significantly increase the CMP process steps. For example: 65nm chips only need about 12 CMPs, while logic chips below 7nm need more than 30 times, and the types of polishing liquids increase from 5-6 to more than 20.

For each generation of 3D NAND stacking layers, the CMP steps increase by about 30%.

The process below 14nm requires a global flatness error of ≤5nm and a surface roughness of <0.1nm, which promotes high-precision equipment.

2. New material application expansion demand scenarios

The third-generation semiconductor (SiC/GaN) is difficult to polish (efficiency is only 1/10 of silicon-based), requiring a dedicated high-pressure polishing head (pressure increased by 50%+) and customized polishing liquid.

The proportion of CMP steps in advanced packaging (such as 2.5D/3D packaging, TSV technology) has increased by 30%.

3. Technological innovation improves efficiency and environmental protection

Intelligent: AI optimizes polishing parameters in real time, improving yield by 15%+; endpoint detection accuracy reaches 3-10nm.

Green: Abrasive-free polishing liquid reduces costs by 40%, and waste liquid metal recovery rate is >95%.

2

Market expansion driven: wafer capacity transfer and demand diversification

1. Global semiconductor capacity transfer to China

70% of the world's new wafer capacity is located in mainland China, and SMIC, Yangtze Memory and others continue to expand production.

2. Downstream application scenarios continue to expand

Traditional silicon-based chips: the number of logic/memory chip layers increases, and FinFET and 3D NAND rely on CMP technology.

Emerging fields: automotive electronics (electric vehicles CAGR 22% to 2030) drive SiC polishing demand.

5G/AI/IoT drives the upgrade of high-frequency component polishing accuracy, and the global semiconductor market is expected to exceed US$1 trillion in 2030.

3

Policy and localization drive: supply chain security and local substitution

1. Strong policy support for domestic breakthroughs

China's "14th Five-Year Plan" lists CMP as a key semiconductor research focus, and the National Big Fund has targeted investment in equipment and material localization.

The "First Equipment Catalog" gives priority to purchasing domestic equipment, and the import dependence of CMP equipment will drop to 65% in 2022 (high-end still exceeds 95%).

2. Acceleration of domestic substitution process

Equipment field: Huahai Qingke (28nm mass production) and Shuoke Precision (14nm) promote the increase in the localization rate.

Material field:

Polishing pad: Dinglong shares' market share has risen to 15%, breaking Dow's monopoly.

Polishing liquid: Anjie Technology accounts for more than 20% in the copper process field.

4

Innovation Ecosystem Driven: Technology Integration and Industry Collaboration

1. Interdisciplinary Technology Integration Breaks Through Bottlenecks

Molecular Dynamics Simulation (ReaxFF-MD) optimizes atomic-level removal mechanisms, and the pressure control accuracy of multi-zone polishing heads reaches nanometers.

The purity of domestic gradient sintered ceramic polishing heads is 99.999%, and the cost is 60% lower than that of imports.

2. Innovation of Industry Chain Collaboration Model

Heading companies are transforming to "equipment + consumables + services" (such as Huahai Qingke's maintenance business gross profit margin exceeds 60%).

Materials-equipment joint research and development: Dinglong shares polishing pads are bundled with Huahai Qingke equipment for sale, shortening the downstream verification cycle.

3. International competition forces technology upgrades

US and Japanese equipment export controls accelerate domestic substitution, and polishing pad/liquid patent barriers are gradually broken (China's CMP patent number ranks first in the world in 2022).

New scenarios such as third-generation semiconductors provide opportunities for overtaking on the curve.