Shanghai Xinyang 2025 Net Profit Surges 71.12%

(Source: Semiconductor Frontiers)

On March 12, Shanghai Sunway (300236.SZ) released its 2025 annual report. Data shows that the company is projected to achieve operating revenue of 1.937 billion yuan in 2025, a year-on-year increase of 31.28%; net profit attributable to shareholders of the listed company reaching 301 million yuan, a significant growth of 71.12% year-on-year; non-recurring net profit of 274 million yuan, up 70.48% year-on-year, with both profitability quality and scale improving simultaneously.

Full-range Breakthroughs in Semiconductor Materials with Rapid Sales Growth of Multiple Products

Looking at business segments, the semiconductor industry contributed 1.517 billion yuan in revenue, a sharp increase of 46.50%, becoming the core driver of the company’s growth. Among them, integrated circuit materials revenue was 1.479 billion yuan, up 48.15%. The coatings segment achieved annual revenue of 419 million yuan; however, due to industry competition, net profit declined slightly compared to the previous year.

In specific product lines, the company’s wafer manufacturing electroplating solutions and additives continue to expand their market share, with sales increasing by 40% year-on-year. These products have achieved efficient microvia electroplating filling in 3D-TSV, with aspect ratios up to 20:1, demonstrating good plating uniformity and reliability. As demand for advanced packaging processes rises, the company’s electroplating solutions deepen cooperation with customers.

The cleaning and etching series for integrated circuit manufacturing are expanding smoothly in client markets, with sales rapidly increasing. Among them, dry etch cleaning solutions now cover all technology nodes of 14nm and above, with sales exceeding 50% growth year-on-year during the reporting period. The etching solutions market further expanded, growing over 80% compared to the previous year. The company’s high-selectivity silicon nitride etching solution can achieve a selectivity ratio of up to 2000:1 and has been applied in the manufacturing of the world’s highest standards of 3D NAND storage chips.

In the photolithography business, the company has established a complete R&D, synthesis, formulation, quality control, and testing platform for various photoresists including I-line, KrF, ArF dry, and ArF immersion types. Several products have achieved mass sales, with sales increasing over 30% year-on-year. The chemical mechanical polishing (CMP) slurry series has also progressed rapidly; mature products such as STI slurry, Poly slurry, and W slurry can cover technology nodes of 14nm and above. During the period, sales of polishing materials increased by 160% year-on-year.

Downstream capacity expansion coupled with domestic substitution opens up market space for semiconductor materials

The company’s rapid growth is closely linked to the overall upward cycle of the semiconductor industry. By 2025, the global integrated circuit industry is entering a new growth cycle driven by exploding demand for AI and computing power. According to data from the US Semiconductor Industry Association, global semiconductor sales are projected to reach $791.7 billion in 2025, a 25.6% increase year-on-year, setting a new record. Sales in China are expected to grow by 17.3% year-on-year, crossing the $200 billion mark for the first time, maintaining about 30% of global sales.

In terms of wafer capacity, the International Semiconductor Industry Association forecasts that by 2025, global semiconductor wafer fab capacity will increase to 33.7 million wafers per month (based on 8-inch wafer equivalents), up 7% year-on-year. Mainland China’s wafer capacity is expected to grow by 14% to 10.1 million wafers per month, accounting for one-third of the global total, ranking first worldwide. Downstream capacity expansion provides significant opportunities for domestic semiconductor material companies.

In the segmented semiconductor materials field, according to TECHCET data, the global market size for electroplating chemicals is expected to grow 10% to $1.19 billion in 2025, with a compound annual growth rate (CAGR) of 7.1% from 2024 to 2029. The global wet electronic chemicals market is projected to grow about 5.7% in 2025, surpassing $6 billion by 2029. The global CMP polishing materials market is expected to grow 6% to $3.62 billion in 2025, with a CAGR of 8.6% from 2024 to 2029. The photolithography market also continues to grow; according to SEMI data, the global photolithography market size increased by 16.15% to $2.732 billion in 2024, with continued growth into 2025.

On the policy front, 2025 is a key year for the high-quality conclusion of the 14th Five-Year Plan. The country and local governments continue to increase strategic support for key semiconductor materials, with significantly enhanced industry funds and special support measures. The process of achieving independent control and domestic substitution of key materials is accelerating, providing solid development support for companies like Shanghai Sunway and other integrated circuit material enterprises.

R&D Investment Continues to Increase; Capacity Construction Steadily Advances

The company continues to increase R&D investment, with total R&D expenses reaching 269 million yuan in 2025, up 22.37% year-on-year, accounting for 13.91% of operating revenue. R&D efforts mainly focus on projects such as photolithography resists for IC manufacturing, advanced etching solutions, cleaning solutions, additives, and CMP slurries. The number of R&D personnel reached 301, a 25.42% increase, with a high-education team supporting technological innovation.

In capacity layout, the company has adjusted its Hefei Sunway capacity plan to enhance production. The Hefei expansion project has completed project approval and environmental assessments, with some production lines already built and entering debugging and trial production. The Shanghai Chemical Industry Zone project is progressing steadily. The 128-acre headquarters and R&D center in Songjiang, Shanghai, with an annual capacity of 50,000 tons of key IC process materials, is scheduled to be approved and started within the year. Once completed, the project will form a production capacity of 5,000 tons/year of ultra-pure chip cleaning solutions, 6,500 tons/year of ultra-pure chip electroplating solutions, 33,500 tons/year of ultra-pure chip etching solutions, and 5,000 tons/year of CMP slurry.

The company states it will continue to focus on the development strategy of “expanding business scale, strengthening technological capabilities, and elevating industry position to become a leader in the semiconductor materials industry.” With new capacity coming online gradually, it will meet future market demand growth and support the realization of the company’s strategic development plans.

Source: Official media / Online news

—Forum Information—

Name: 3rd Optical Mask and Photoresist Technology Forum

Date: April 24, 2026

Location: Shanghai

Organizer: Yahua Consulting

—Conference Background—

As semiconductor process nodes advance to 2nm and below, next-generation lithography has become a key industry focus. Main directions include high-NA EUV lithography, nanoimprint lithography, electron beam lithography, directed self-assembly (DSA), and X-ray lithography. These technologies aim to improve resolution, reduce costs, and increase throughput. By 2026, high-NA EUV has entered high-volume manufacturing, while NIL and X-ray lithography, as potential disruptors, are accelerating R&D.

Entering 2026, China’s demand for high-end masks continues to grow strongly, but challenges remain in R&D, production capacity, and supply chain integration, including high costs, technical complexity, and reliance on supply chains. The global semiconductor mask market grew from $4.04 billion in 2018 to $5.1 billion in 2024, with a CAGR of 4.0%. It is expected to expand further to about $8 billion by 2030. Yahua Consulting estimates that China’s third-party mask market share will be around 70% in 2025, with potential to reach 12 billion yuan by 2030.

The global mask market is mainly dominated by Photronics, Toppan (Japan), and DNP (Japan), holding over 70% market share. In China, local companies such as Luwei Optoelectronics, Qingyi Photonics, and Longtu Mask are continuously improving their competitiveness and making breakthroughs in domestic substitution.

The 3rd Optical Mask and Photoresist Technology Forum will be held in Shanghai on April 24, 2026. Organized by Yahua Consulting, the forum will gather industry leading companies and experts to discuss the development directions of next-generation lithography, technological advances in China’s mask and photoresist industry, market opportunities and challenges, and industry outlook.