TSMC's 2nm Expansion Boosts Demand for Specialty Chemicals

Taiwan Semiconductor Manufacturing Company's (TSMC) expansion of its 2-nanometer production is driving increased demand for dry film photoresist (DFR), a critical material in semiconductor manufacturing. This surge in demand has bolstered optimism among industry analysts regarding the specialty chemicals sector.

“

Dry Film Photoresist (DFR) is a solid photosensitive material that pre-coats photosensitive resin evenly on a carrier film. Its typical structure consists of three layers: a PET carrier film, an intermediate photosensitive resin layer, and a PE protective film.

Several Taiwanese companies are poised to benefit from this trend. Reports from Cathay Securities and Pocket Securities highlight Chang Chun Group (1717) and Yung Kwang Chemical (1711) as key players. Cathay Securities has set a target price of NT$75 for Chang Chun Group. Pocket Securities also favors Chang Chun Group, alongside San Fu Chemical (4755), Topco Scientific (4772), and GCI (5434), recognizing their integral role in the advanced semiconductor supply chain.

“

The key going forward is whether Chang Chun can upgrade its existing large-volume shipping advantage to the ABF substrate, Interposer, and advanced packaging markets.

Chang Chun Group has demonstrated strong financial performance, reporting a June pre-tax profit of NT$284 million, a 97.37% year-on-year increase. For the first half of the year, pre-tax profit reached NT$1.791 billion, up 71.76%. The company anticipates continued stable growth in the second half, driven by its synthetic resins, specialty materials, and DFR products, with precision equipment and semiconductor packaging materials progressing as planned.

“

When TSMC's 2nm process is gradually ramping up in Kaohsiung and Baoshan plants, the topic of wafer foundries always revolves around equipment suppliers and testing and packaging plants, but few people notice the inconspicuous but indispensable role of 'specialty chemicals' behind every process where wafers are born.

Industry observers note that while wafer fabrication often garners attention, the specialized chemicals supporting processes like TSMC's 2nm node are indispensable. These high-purity, customized materials are becoming increasingly crucial as demand for AI servers and advanced packaging intensifies. Companies like San Fu Chemical are shifting towards electronic industry chemicals, including strippers for CoWoS processes, while Taiwan Speciality Chemicals focuses on high-purity silane gases for wafer deposition. Chong Yue acts as a distributor for key semiconductor materials, and New Material Technology develops surface modifiers and DUV photoresists, all vital components in the advanced manufacturing ecosystem.

“

These high-purity, customized chemical materials are becoming an increasingly noticed piece of the puzzle in the semiconductor supply chain as demand for AI servers and advanced packaging tightens simultaneously.