Jiuri New Materials has acquired Xuzhou Dajing New Materials Group, making a full-scale push into the photoresist and semiconductor materials sectors.

Jiuri New Materials has acquired Xuzhou Dajing New Materials Group, making a full-scale push into the photoresist and semiconductor materials sectors.

Published on: 2020/09/17

　　According to an announcement by Jiuri New Materials (688199.SH), the company plans to acquire 100% of the equity in Xuzhou Dajing New Materials Technology Group Co., Ltd., including its wholly owned subsidiary, Dajing Information Chemicals (Xuzhou) Co., Ltd.

　　Jiu Ri New Materials is a listed company on the STAR Market of the Shanghai Stock Exchange. In recent years, while consolidating its leading position in the photoinitiator industry, it has continuously explored expanding into the electronic chemicals sector. According to reports, Jiu Ri New Materials began investing early in the R&D of chemical materials related to photoresists. Previously, the company stated on the SSE e-Interaction platform that its cationic photoinitiators had completed both small-scale and pilot-scale testing, and its photoresist photosensitizers were undergoing small-scale development. Photosensitizers are core raw materials for manufacturing display‑panel‑type photoresists and g‑ and i‑line semiconductor photoresists, accounting for roughly 60% of production costs. At present, China lacks domestic manufacturers of microelectronics‑grade photosensitizers, leaving the country reliant on imports from Japan, South Korea, and other countries. The completion of this acquisition marks a substantial step forward in Jiu Ri New Materials’ strategic positioning within the photoresist and semiconductor materials sectors. It will enable the company to translate years of R&D achievements into marketable products, swiftly achieving industrialization and large‑scale production of photosensitizers. Furthermore, leveraging its strengths in chemistry and chemical engineering, Jiu Ri New Materials will comprehensively advance the R&D and production of chemical materials essential to the photoresist and semiconductor industries, thereby making a meaningful contribution to China’s development in these fields.

　　Upon inquiry, Xuzhou Dajing New Materials Group was established in 2014. Its principal business activities include the research, development, promotion, production, and sale of information chemicals (photoresists, reagents, and raw materials), coatings, and chemical‑biopharmaceutical products. Its wholly owned subsidiary, Dajing Information Chemicals, focuses on the production and sales of information chemicals (photosensitive materials, reagents, and raw materials), coatings, and chemical‑biopharmaceutical raw materials, as well as related R&D activities.

　　The former principal executives and core technical personnel of Xuzhou Dajing New Materials Group were Kang Wenbing and You Jiadong. Kang Wenbing graduated from Nagoya Institute of Technology in Japan, where he earned a Ph.D. in Materials Engineering. He currently serves as a professor and doctoral supervisor at the National Colloid Materials Engineering Technology Research Center of Shandong University. Prior to this, he spent more than 20 years at Merck, one of the world’s three leading photoresist manufacturers, holding positions such as Head of R&D, Head of Quality Assurance, and Product Director. Throughout his career, he has been deeply involved in the production and R&D of photoresists for integrated circuit manufacturing, anti-reflective coatings, nonlinear optical materials (for laser wavelength conversion), organic light‑emitting materials and devices (OLEDs), color photoresists for liquid crystal displays, photoresists for liquid crystal panels (TFTs), high‑purity chemicals, and coating‑type insulating dielectric films essential for the fabrication of memory devices (DRAM and NAND flash). Several of his research achievements are at the forefront of global innovation. You Jiadong is a senior domestic expert in electronic chemicals and a distinguished engineer. He has participated in major national science and technology projects on photoresists, including the 863 Program, and founded Suzhou Ruihong Electronic Chemicals Co., Ltd. and Suzhou Jingrui Chemical Co., Ltd. (300655.SZ). He led and oversaw the implementation of the national Key Project 02—specifically, the industrialization of i‑line and 248‑nm photoresists—establishing himself as a leading figure in China’s photoresist industry.

The announcement indicates that, upon completion of the acquisition, Kang Wenbing will continue to serve at Xuzhou Dajing New Materials Group, while You Jiadong has been appointed as a consultant to Jiuri New Materials.

On August 20, Xi Jinping, General Secretary of the CPC Central Committee, President of the People’s Republic of China, and Chairman of the Central Military Commission, presided over a symposium on solidly advancing the integrated development of the Yangtze River Delta and delivered an important speech. Xi Jinping emphasized that the initiative in innovation and development must be firmly held in our own hands. The three provinces and one municipality should pool their scientific and technological resources, focus on key areas and critical links such as integrated circuits, biopharmaceuticals, and artificial intelligence, and strive to achieve breakthroughs at an early date. They should also support a number of small, medium, and micro-sized science and technology enterprises in their innovative development.

　　This is not the first time that “integrated circuits” have come into the public spotlight. Earlier this month, the State Council issued the “Several Policies for Promoting the High-Quality Development of the Integrated Circuit and Software Industries in the New Era.” The document explicitly states that the integrated circuit and software industries are at the core of the information sector and serve as a key driving force behind the new round of scientific and technological revolution and industrial transformation.

　　With strong support from national policies, the photoresist and semiconductor industries are poised to seize new historic opportunities for development. Upon completion of this transaction, Jiuri New Materials will vigorously accelerate the implementation of two key projects: the “Xuzhou Dajing New Materials Technology Group Co., Ltd. 1,000‑ton‑per‑year photoresist and supporting reagent project” and the “Dajing Information Chemicals (Xuzhou) Co., Ltd. 600‑ton‑per‑year microelectronic photoresist‑specific photosensitizer project.” We look forward to Jiuri New Materials achieving full production capacity at an early date, thereby breaking the long‑standing foreign monopoly on core photoresist raw materials and contributing to China’s efforts to accelerate the localization of the photoresist industry and achieve import substitution.

(Source: Hong Zhou Kan)