Cinno Research, Dongwoo Finechem is preparing to improve the core material of semiconductor process - photoresist (PR). The main reason is the rise in raw materials, labor costs, etc. South Korean semiconductor companies said that it is difficult to accept Dongyu Fine Chemical*** Due to the deterioration of the semiconductor market, most of the semiconductor companies in South Korea are either losing money or barely making profits.
According to industry news on December 11, Dongyou Precision Chemical conveyed its intention to Korean semiconductor manufacturers about the price increase of KRF and L-line PR. It is reported that different products have different increases, ranging from about 10%-20%.
PR is the core material in the semiconductor process, and is a photosensitive liquid used to react to light and cause chemical changes. In semiconductor processes, these properties are used to draw circuit patterns.
South Korean semiconductor companies said it was difficult to accept the price increase of Dongyu Precision Chemical. Because PR may lead to a decline in the competitiveness of Korean semiconductor companies. Foundry industry insiders said, "If PR*** is for Foundry, it can only be passed on to customers (fabless). He also said, "The PR price increase of Dongyou Fine Chemical will not only lead to foundry, but also cause the profitability of the entire Fabless industry to deteriorate." ”
Toyu Precision Chemical is a 100% subsidiary of Sumitomo Chemical of Japan, and in addition to first-class process materials such as PR, it also produces hydrogen peroxide and ammonia for semiconductors, and supplies it to Korean semiconductor companies. The reason why Dongyou Fine Chemical asks for a price increase is because of the high quality of PR raw materials such as monomers and polymers.
In this regard, a person in the Korean semiconductor industry said: "Dongyu Precision Chemical has recently raised the price of KRF and I-Line PR products due to the deterioration of profitability", "It is understood that Dongyu Precision Chemical pays more than 100 billion won in dividends to the parent company every year, which is unacceptable for Korean companies." “
Over the past five years, Dongyu Fine Chemical has paid an average of 120.4 billion won (about 6.5 billion won) per year to its parent company, Sumitomo ChemicalRMB 500 million). In fiscal year 2022 (April 2022 to March 2023), which began with a downturn in the semiconductor market, KRW 107.3 billion was distributed to the parent company out of a net profit of KRW 170.8 billion for the current period. The dividend ratio is 628%。
On the other hand, the Korean semiconductor materials industry as a whole is facing further price reductions based on customer requests. A relevant person in the materials industry said: "After the semiconductor market began to decline in the second half of last year, customers have put forward requests for price reductions", and said that "for small and medium-sized enterprises with poor negotiation ability, enterprises are in a difficult period of crumbling."