Guojin Securities: Domestic Chemical Mechanical Polishing Companies Are Expected to Further Expand Market Opportunities

Guojin Securities Research Report states that Chemical Mechanical Planarization (CMP) is a key process in integrated circuit manufacturing for achieving global uniform flatness of wafers, used in silicon wafer production, wafer fabrication, and advanced packaging. With the expansion of domestic semiconductor capacity, advancements in process technology, development of new materials and processes, evolution of advanced packaging techniques, and extension of upstream raw materials for CMP polishing products, domestic CMP companies are expected to further expand market opportunities. It is recommended to focus on industry leaders Anji Technology, Dinglong Co., and other companies continuously expanding into the CMP market.

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Guojin Electronics Fan Zhiyuan | In-Depth Study of the Chemical Mechanical Planarization Industry: Self-Sufficiency in Advanced Processes and Raw Materials Opens Market Space

Chemical Mechanical Planarization (CMP) is a critical process in integrated circuit manufacturing for achieving wafer-wide uniform flatness, used in silicon wafer production, wafer fabrication, and advanced packaging. According to Market Growth Reports, the global CMP polishing liquids and pads market is estimated to reach approximately $3.38 billion by 2025, with a compound annual growth rate (CAGR) of 4.5% from 2025 to 2034. According to Huajing Industry Research Institute, the CMP polishing liquid market size in China was about 2.96 billion yuan in 2023; according to Frost & Sullivan, the CMP polishing pad market in China was approximately 2.3 billion yuan in 2024. The market growth is mainly driven by process improvements and advanced packaging. More advanced logic chip manufacturing processes require new polishing materials and additional polishing steps. Market Growth Reports projects that by 2028, advanced packaging technology will contribute an additional 15-20% growth in CMP demand.

CMP polishing liquids are composed of abrasives, additives, and ultrapure water, with over 300 formulations actively used worldwide. Abrasives are the physical removal units in polishing liquids, including silicon dioxide (SiO2), cerium oxide (CeO2), aluminum oxide (Al2O3), etc. According to Anji Technology’s announcement, in 2023, the company’s grinding particle procurement costs accounted for about 54.6% of total CMP polishing liquid costs. Based on different process steps, CMP polishing liquids are categorized into copper and copper barrier layer polishing liquids, tungsten polishing liquids, interlayer dielectric polishing liquids, shallow trench isolation polishing liquids, and new products for new materials and processes. Fujifilm disclosed that CMP polishing liquids for copper and copper barrier layer processes account for about 45% of the total market size. Currently, the global CMP polishing liquid market is relatively concentrated, with the top six companies holding about 85% of the market share in 2024. The evolution of new processes may introduce new polishing liquid companies. For example, in sub-10nm technology nodes, cobalt will partially replace copper as the interconnect material, and cobalt polishing liquid suppliers may see growth opportunities.

CMP polishing pads are mainly divided into hard pads, soft pads, and composite pads. Hard pads are primarily made of polyurethane and serve for coarse polishing. According to Global Growth Insights, by 2025, hard pads will account for about 55% of the global CMP polishing pad market. Soft pads are mainly made of non-woven fabrics and are typically used for final polishing, while composite pads have gained market attention in recent years. According to Ibond Semiconductor data, Dupont holds over 75% of the global CMP polishing pad market share. Other leading companies include CMC Materials, Tomas West Inc., Fujibo, etc., with the top four companies accounting for about 90% of the global CMP polishing market. Fujibo expects its market share of CMP soft pads to be around 80% in 2025.

Anji Technology is a leading domestic CMP polishing liquid company. In 2024, the company’s CMP polishing liquid revenue was 1.55 billion yuan, with a global market share of about 10%. Currently, Anji Technology’s CMP polishing liquids cover all categories and include self-developed CMP polishing abrasives. The CMP polishing liquid production capacity (including under construction) at Anji’s Shanghai Jinqiao and Ningbo Beilun facilities is approximately 60,000 tons per year, with nano abrasive capacity in Shanghai Chemical Industry Park of about 500 tons per year. Dinglong Co. is a domestic leader in CMP polishing pads, with full-category and full-node layout, and expanding into polishing liquids, polishing slurry materials, and cleaning liquids. In the first three quarters of 2025, the company’s revenue from CMP polishing pads, liquids, and cleaning solutions totaled 1 billion yuan, accounting for 37.0% of total revenue. Dinglong expects that by the end of Q1 2026, the Wuhan headquarters’ hard polishing pad capacity will increase to about 50,000 pieces per month (about 600,000 per year), with Quanjiao soft pads and buffer pads capacity around 200,000 pieces per year, and polishing liquids and grinding particles capacity about 25,000 tons, with cleaning liquids capacity about 12,000 tons. Other companies include Shanghai Xinyang in CMP polishing liquids and cleaning solutions, and Tongcheng New Materials in CMP polishing pads.

Investment Recommendations

We believe that with the expansion of domestic semiconductor capacity, advancements in process technology, development of new materials and processes, evolution of advanced packaging, and extension of upstream raw materials for CMP products, domestic chemical mechanical polishing companies are expected to further expand market opportunities. It is recommended to focus on industry leaders Anji Technology, Dinglong Co., and other companies continuously expanding into the CMP market.

Risk Warnings

Risks include raw material supply and price increases, cyclical risks in the semiconductor industry, product development risks, risks of core technology leakage and loss of key technical personnel, and high customer concentration risks.

(Source: Yicai)