Japanese companies are strong in the global photoresist market because the supply chain, from upstream to downstream, is close to being an integrated whole. Four leading players currently control most of the market, and this overview maps developments from upstream materials and monomers to downstream equipment.
Photoresists are materials whose properties change when exposed to light. Japanese companies remain essential at virtually every stage of the supply chain, from upstream photosensitive materials, monomers and solvents to downstream antireflective coatings, masks and exposure equipment. Japanese companies account for approximately 90% of the global market, creating an oligopolistic structure in which competition is limited to two companies, US-based DuPont and Germany's Merck.
JSR, once among the world's leading companies, was delisted from the TSE Prime Market in June 2024 following a tender offer by JIC. It is no longer publicly listed. This means investors need to focus on the entire supply chain, including both upstream and downstream segments.
Following the chain from upstream to downstream, Japanese companies are identified as holding dominant positions in virtually every stage, from the raw materials, monomers and solvents used in photosensitive materials to antireflective coatings, pellicles, coating and developing equipment, and defect inspection equipment.
Specific developments providing a tailwind include a 65% year-on-year increase in Tokyo Ohka Kogyo's EUV resist sales in the interim period of the fiscal year ending December 2026, with operating profit at roughly 43–45% above the previous year. Shin-Etsu Chemical also completed a new plant in Gunma Prefecture, its first domestic plant in 56 years, and began increasing production of exposure materials for AI semiconductors following an investment of approximately ¥83 billion. In addition, ASML and TSMC announced a shift in the size of EUV photomasks, suggesting structural changes on the mask and mask-blank side as well.