Forward-Looking Analysis Report on Nata Opto-Electronic's Technology Roadmap

Based on the comprehensive information collected, I hereby provide you with an

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Nata Opto-Electronic (Jiangsu Nata Opto-Electronic Material Co., Ltd., SZ300346) is a leading enterprise in China’s semiconductor key materials sector, with its technology layout covering three core business areas [1][2]:

Business Segment	Revenue Share	Technology Positioning
Electronic Specialty Gases	60.95%	Hydrogen-based specialty gases (phosphine, arsine), fluorine-containing specialty gases (nitrogen trifluoride, sulfur hexafluoride)
Precursor Materials	27.80%	Silicon-based precursors, metal precursors (including MO sources)
Photoresists and Supporting Materials	Approximately 4.23%	ArF photoresist, KrF photoresist

The company is

, occupying a unique strategic position in the domestic semiconductor materials sector [3][4].

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Nata Opto-Electronic’s ArF photoresist technology represents the highest level of domestic photoresists [3][5]:

Technical Indicator	Nata Opto-Electronic’s Level	Industry Comparison
Technology Node	Mass production for 28nm processes, passed validation for 14nm processes	Domestic leader; the only enterprise to achieve mass production of 28nm ArF immersion photoresist
Defect Density	0.03 defects/cm²	Close to international advanced levels
Product Yield	92%-99.7%	Meets mass production requirements of wafer fabs
Production Capacity Scale	Existing 25 tons/year; new production line with 500 tons/year capacity (to reach full production by the end of 2025)	Leading domestic production capacity scale

• Self-developed Key Materials
  : Successfully developed core raw materials such as photoresist resins and photosensitizers
• Cost Advantage
  : Self-developed materials reduce costs by 30%-50% compared to imported products [3]
• Breaking Monopoly
  : Filled the domestic gap in ArF photoresists for 28nm-7nm processes

• Customer Coverage
  : Leading wafer fabs such as SMIC and Yangtze Memory Technologies
• Order Breakthrough
  : ArF photoresist sales exceeded RMB 10 million in 2024; secured 100-ton level orders in 2025 [3]
• Business Growth
  : Revenue from photoresist business grew 60% year-on-year in Q3 2025

Nata Opto-Electronic holds a leading global position in the MO source (metal-organic source) segment [2][6]:

• Global No. 1
  : Topped global market share in 2019
• Technological Breakthrough
  : Broke the technological monopoly of overseas enterprises in the early 21st century
• Application Expansion
  : Products cover fields such as LEDs, third-generation semiconductors, and photovoltaics

Precursors are key materials for ALD/CVD thin film deposition [6][7]:

• Complete Product Line
  : Full coverage of silicon-based precursors and metal precursors
• High Capacity Utilization Rate
  : Reached 93.15% in H1 2025, with tight supply
• Excellent Gross Profit Margin
  : Gross profit margin of precursor materials exceeds 50%

According to industry forecasts [6]:

• The global semiconductor precursor market size will reach approximately USD 1.35 billion in 2025
• The Chinese market will reach USD 1.2 billion in 2028
• There is huge space for import substitution, and Nata Opto-Electronic, as a leading enterprise, will fully benefit from it

• Hydrogen-based Specialty Gases
  : Phosphine, arsine, safety sources, etc.
• Fluorine-containing Specialty Gases
  : Nitrogen trifluoride, sulfur hexafluoride, etc.
• Customer Coverage
  : Leading enterprises such as SMIC and BOE [8]

• High Capacity Utilization Rate: Reached 102.37% in H1 2025
• Stable Customer Relationships: Deeply bound with mainstream wafer fabs
• Growing Market Size: The Chinese electronic specialty gas market size is nearly RMB 30 billion, with an annual growth rate of 10% [6]

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Direction	Expected Progress	Market Space
Capacity Release of ArF Photoresist	New production line with 500 tons/year capacity reaches full production	Target revenue of RMB 500 million in 2025
Customer Expansion	Deepen cooperation with SMIC and Yangtze Memory Technologies	Rigid demand for import substitution
Cost Optimization	Scale effect of self-developed materials emerges	Gross profit margin improvement

• National Integrated Circuit Industry Investment Fund Phase II
  participated in the capital increase of Ningbo Nata Opto-Electronic [8]
• Ministry of Commerce initiated anti-dumping investigation
  on Japanese photoresist materials [4]
• Policy Inclination for Import Substitution
  : Wafer fabs enjoy a 10% subsidy for purchasing domestic photoresists

Technical Direction	R&D Progress	Breakthrough Target
14nm ArF Photoresist	Passed validation	Achieve mass production and delivery
EUV Photoresist	In early-stage R&D	Lay out for processes below 7nm
Advanced Packaging Photoresist	Technology reserved	Grasp emerging demand

Currently, the global high-end photoresist market is still dominated by Japanese enterprises such as JSR and Shin-Etsu Chemical, with a combined market share of over 90% [4]. Nata Opto-Electronic’s breakthrough path:

1. Technological Upgrade
   : Continuous R&D investment; R&D expense ratio reached 9.06% in 2024 [3]
2. Patent Layout
   : Improve the intellectual property protection system
3. Ecosystem Binding
   : Collaborative R&D with wafer fabs to form a process knowledge base

• Market Expansion
  : With the capacity expansion of domestic wafer fabs, 12-inch wafer production capacity will reach 1.2 million wafers per month, and photoresist demand will exceed 6,000 tons [5]
• Technological Leap
  : Development of new product categories such as EUV photoresists and advanced packaging photoresists
• Overseas Opportunities
  : Collaborate with domestic wafer fabs to enter the global supply chain

• Third-Generation Semiconductors
  : Manufacturing of gallium nitride and silicon carbide devices
• Advanced Packaging
  : New demand for photoresists from new technologies such as Chiplet
• Photovoltaics/LEDs
  : Stable growth of the traditional MO source business

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Advantage Dimension	Specific Content	Competitive Barrier
Technological Leadership	The only domestic enterprise with mass production capacity of ArF photoresist	High technological barriers, obvious first-mover advantage
Platform-Based Layout	Synergy among precursors, specialty gases, and photoresists	High customer stickiness, strong risk resistance
National Strategic Support	Undertakes the “02 Special Project”, and is held by the National Integrated Circuit Industry Investment Fund Phase II	Strong resource acquisition capability
Independent and Controllable	Self-developed core materials, safe supply chain	Dual advantages in cost and supply

Risk Type	Risk Description	Response Measures
Technological Risk	Cutting-edge technologies such as EUV photoresist are still in the early stage of R&D	Continuous R&D investment, cooperation with scientific research institutions
Market Risk	Localization rate in high-end market is still low	Accelerate customer validation, seize market share
Competitive Risk	Dominated by international giants such as JSR and Shin-Etsu Chemical	Differentiated competition, bind with local wafer fabs
Policy Risk	Cyclical fluctuations in the semiconductor industry	Diversified layout to smooth out cyclical impacts

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Dimension	Nata Opto-Electronic	Tontru New Materials	Shanghai Sunya
Focused Product Category	ArF (90nm-7nm)	Mainly KrF, ArF in R&D	KrF, dry-process ArF
Technology Node	Mass production for 28nm, passed validation for 14nm	Mature KrF, ArF in validation	Mass production for KrF, ArF in R&D
Production Capacity	25 tons/year + new 500 tons/year line	50 tons/month KrF capacity	Capacity under planning
R&D Expense Ratio	9.06%	7%+	17.9%
2024 Photoresist Revenue	Exceeded RMB 10 million	Approximately RMB 200 million	Not disclosed separately
Core Advantage	Benchmark for mass production of high-end ArF photoresist	Full-category layout, wide customer coverage	High R&D investment, platform-based synergy

: Focuses on the highest-end ArF photoresist, is the ‘technological flag-bearer’ of import substitution, and is irreplaceable in the advanced process sector [3][4].

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1. Accurate Strategic Positioning
   : Focuses on the ArF photoresist segment, which is the highest-end and has the thickest technological barriers, achieving a zero breakthrough in domestic production
2. Platform-Based Synergy
   : Synergy among the three major businesses of precursors, specialty gases, and photoresists, forming unique competitive advantages
3. Continuous R&D Investment
   : Maintains an R&D expense ratio of over 7%, and lays out cutting-edge technologies such as EUV
4. Grasping Policy Dividends
   : Deeply bound to the national semiconductor strategy, continuously receiving policy and financial support

Dimension	Evaluation
Growth Potential	★★★★★ (Rigid demand for import substitution + technological iteration)
Certainty	★★★★☆ (Technological leadership + customer binding + policy support)
Technological Barriers	★★★★★ (Extremely high difficulty in localization of high-end photoresists)
Risk Level	★★★☆☆ (Industry cycle + technological iteration risks)

: Nata Opto-Electronic is one of the enterprises with the most forward-looking technology roadmaps in China’s semiconductor materials sector. Its breakthrough in ArF photoresist represents the core progress of independent and controllable Chinese semiconductor materials. With the acceleration of import substitution and the release of policy dividends, the company is expected to grow from an ‘import substitution player’ to a ‘global competitor’.

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[1] Sina Finance - Nata Opto-Electronic: Mainly engaged in advanced precursors, electronic specialty gases, photoresists and supporting materials (https://cj.sina.cn/articles/view/2311077472/89c03e6002002gowu)

[2] NetEase Finance - Nata Opto-Electronic rose 3.96%, with a turnover of RMB 7.153 billion (https://www.163.com/dy/article/KJ8B2FHN05568W0A.html)

[3] Eastmoney Wealth Account - Nata Opto-Electronic is the domestic leader in mass production of ArF photoresist (https://caifuhao.eastmoney.com/news/20260117222424004726200)

[4] Eastmoney Wealth Account - Three core logics for the growth of domestic photoresist leaders (https://caifuhao.eastmoney.com/news/20260110181137550832350)

[5] NetEase Finance - MIIT reveals “latest progress of domestic photoresists” (https://www.163.com/dy/article/KJCO2PAH0519QIKK.html)

[6] EET China - The 7th Semiconductor Wet Chemicals, Electronic Gases and Precursors Forum (https://www.eet-china.com/mp/a468271.html)

[7] EET China - Summary of Domestic Wet Electronic Chemicals Projects in 2025 (https://www.eet-china.com/mp/a466166.html)

[8] Sina Finance - Nata Opto-Electronic rose 3.96%, with a turnover of RMB 7.153 billion (https://www.163.com/dy/article/KJ8B2FHN05568W0A.html)

[9] Eastmoney Wealth Account - Comparison of core indicators of photoresist business among three companies (https://caifuhao.eastmoney.com/news/20260117222647248747340)