Global Photoresist Market Outlook to 2030

Global Photoresist Market Overview

• Global Photoresist Market in 2023 was valued at USD 9.5 billion, driven by the rising demand for semiconductor devices and displays. This market growth is significantly supported by advancements in photolithography technologies, crucial for the production of microelectronic devices.
• Major players in the global photoresist market include JSR Corporation, Tokyo Ohka Kogyo Co., Ltd., DuPont, Fujifilm Holdings Corporation, and Merck Group. These companies have established dominance due to their strong research and development capabilities, extensive product portfolios, and strategic partnerships.
• In 2024, JSR Corporation successfully completed the acquisition of all shares in Yamanaka Hutech, making it a wholly-owned subsidiary. This transaction was finalized on August 1, 2024, and is part of JSR's strategy to enhance its product portfolio in the semiconductor materials industry, particularly in the photoresist market, which is crucial for semiconductor manufacturing processes.
• Tokyo, Seoul, Taipei, and San Francisco are key players in the semiconductor market, serving as major hubs for manufacturing and technological innovation. Their dominance is driven by the presence of industry leaders like Tokyo Electron, Samsung, TSMC, and Intel. Contributing factors include advanced research and development infrastructure, a robust supply chain for raw materials, proximity to major electronics manufacturing plants, and substantial government support for the semiconductor industry.

Global Photoresist Market Segmentation

The Global Photoresist Market can be segmented based on several factors:

By Product Type: Global Photoresist Market is segmented by product type into ArF immersion, ArF dry, KrF, and G-line/I-line. In 2023, ArF immersion photoresists dominated the market, holding a significant share due to their widespread use in advanced semiconductor manufacturing. The precision and capability of ArF immersion technology to produce finer features make it indispensable for the production of the latest generation of microchips

By Application: Global Photoresist Market is segmented by application into semiconductor and integrated circuits, printed circuit boards (PCBs), and LCDs & OLEDs. In 2023, the semiconductor and integrated circuits segment held the largest market share, driven by the escalating demand for smaller and more efficient electronic devices. The increasing use of semiconductors in various industries has amplified the need for high-quality photoresists, ensuring the dominance of this application segment.

By Region: Global Photoresist Market is segmented by region into North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and Latin America. Asia-Pacific held the largest market share in 2023 due to the region's dominance in semiconductor manufacturing, strong presence of key players, and continuous advancements in electronics and display technologies. Furthermore, growing demand for consumer electronics, coupled with government initiatives to boost domestic semiconductor production, further contributed to the market's expansion in these countries.

Global Photoresist Market Competitive Landscape

• DuPont & YMT Collaboration: In 2023, DuPont announced a collaboration with YMT, a Korean PCB materials manufacturer. This partnership focuses on improving the distribution and service of DuPont's Riston dry film photoresist in Korea. YMT is set to establish a dry film slitting facility in Ansan, which will support this initiative.
• Tokyo Ohka Kogyo Acquisition: In 2023, AIMECHATEC, Ltd. completed the acquisition of the Process Equipment Business from Tokyo Ohka Kogyo Co., Ltd. This move is part of AIMECHATEC's strategy to streamline operations and concentrate on core business areas, particularly in electronic component manufacturing equipment.

Global Photoresist Industry Analysis

Growth Drivers:

• Expansion of Semiconductor Manufacturing Facilities: The expansion of semiconductor manufacturing facilities globally, especially in Asia-Pacific, has significantly driven the demand for photoresists. In 2024, Taiwan Semiconductor Manufacturing Company (TSMC) announced the establishment of a new facility in Japan, valued at USD 8 billion, to increase its semiconductor output. This expansion has directly boosted the demand for advanced photoresists required for photolithography in semiconductor production.
• Rising Demand for Consumer Electronics: The growing consumer electronics market, particularly in smartphones, tablets, and wearable devices, has been a key driver for the photoresist market. In 2023, global shipments of smartphones reached 1.14 billion units. These devices require intricate semiconductor components, which in turn necessitates high-quality photoresists for their production.
• Adoption of Advanced Photolithography Techniques: The adoption of advanced photolithography techniques, such as Extreme Ultraviolet (EUV) lithography, has driven the need for specialized photoresists. EUV technology is critical for producing smaller, more efficient semiconductor nodes, which are essential for modern electronics.

Challenges:

• High Cost of Research and Development: Developing photoresists that can meet the requirements of cutting-edge technologies like EUV lithography requires substantial investment in R&D. Smaller companies, in particular, struggle to compete with established giants like JSR Corporation and DuPont, who can afford these high costs, leading to a concentration of market power among a few key players
• Environmental Regulations: The European Union (EU) introduced new regulations under the REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) framework, restricting the use of certain hazardous substances in the manufacturing process. Compliance with these regulations has increased production costs, as manufacturers must invest in safer alternatives and waste management systems.

Government Initiatives:

• CHIPS and Science Act: The CHIPS and Science Act, officially signed into law on August 2022 is a significant piece of legislation aimed at bolstering the United States' semiconductor industry and advancing scientific research. The act authorizes $280 billion in total funding, with about $52.7 billion specifically allocated for semiconductor research, development, and manufacturing. The act aims to provide a substantial boost to the photoresist market in the United States.
• Digital Economy Promotion Act: The South Korean government introduced the Digital Economy Promotion Act in 2023, which includes incentives for the development of advanced semiconductor technologies. These incentives are prescribed by various tax-related statutes, including the Restriction of Special Taxation Act and the Restriction of Special Local Taxation Act. South Korea's strategic focus on maintaining its leadership in the global semiconductor industry directly supports the growth of the photoresist market.

Global Photoresist Future Market Outlook

The market is expected to reach USD 14.5 Bn by 2030 driven by the expanding semiconductor industry and the adoption of advanced photolithography techniques. The ongoing digital transformation, characterized by the proliferation of 5G technology, AI, and IoT will continue to fuel the demand for high-performance semiconductors, thereby boosting the need for innovative photoresist materials.

Future Market Trends

• Shift Towards Sustainable Photoresist Technologies Over the next five years, there will be a significant shift towards the development of sustainable photoresist technologies. This trend is driven by increasing environmental regulations and the demand for eco-friendly manufacturing processes in the semiconductor industry. Companies are expected to invest heavily in R&D to create photoresists that minimize chemical waste and energy consumption, aligning with global sustainability goals.
• Increased Adoption of EUV Lithography The adoption of Extreme Ultraviolet (EUV) lithography will accelerate as semiconductor manufacturers strive to produce smaller, more efficient chips. The demand for specialized EUV photoresists will grow, leading to advancements in photoresist formulations that enable higher precision in chip production. This trend will be particularly prominent in leading semiconductor hubs such as Taiwan, South Korea, and Japan.