Author: Peng Cheng
Recently, ACM Research (Shanghai) released a record sheet of investor relations activities. In response to the price increase trend of semiconductor components, the company stated that it has noted the price fluctuations in the component market and taken corresponding countermeasures. Notably, to systematically advance the localization of its components, ACM Research (Shanghai) has designed and assembled two pieces of equipment entirely composed of domestic components in the front-end semiconductor and advanced packaging fields since 2025 (it should be specifically noted that the above equipment is only for internal testing of component performance), and plans to conduct component testing and validation in the Lingang cleanroom, gradually introducing the qualified components into the company's mass production equipment.
Although these two pieces of equipment are strictly internal "not for sale" units dedicated to testing component performance, they signify that domestic semiconductor equipment components are moving towards a fully closed loop and entering a new stage of systematic validation. Domestic semiconductor equipment components are gradually gaining momentum.
01. The "Cause" of the Momentum: Demand Spillover to the Upstream
The momentum of domestic semiconductor equipment components primarily stems from the demand spillover from the downstream.
On the one hand, the demand for AI computing power is expanding from GPUs and HBM to broader segments of the industry chain. The expansion wave in fields such as advanced packaging, power management, and inspection equipment has driven up the prosperity of the entire equipment industry chain. SEMI reports predict that investments in 300mm memory equipment will exceed $50 billion by 2026. On the other hand, wafer capacity in mainland China continues to expand. Feng Li, President of SEMI China, pointed out that global wafer fab capacity has been shifting towards China. Over the past two decades, the proportion of wafer manufacturing capacity in mainland China to the global total has achieved a triple jump: from 2000 to 2020, global wafer fab capacity shifted to China; in 2000, China's wafer capacity accounted for only 2%, rising to 9% in 2010, and reaching 17% in 2020. According to SEMI forecasts, by 2030, mainland China's wafer capacity will account for one-third of the global total. Among them, at the mainstream 22-40nm process nodes, mainland China's capacity growth is the fastest, with the share expected to reach 37% in 2026 and potentially 42% in 2028, taking a dominant position. Mainland China has firmly established itself as the world's largest semiconductor equipment spending market. The demand for equipment procurement from newly built production lines has directly driven the upstream component supporting market. Demand is transmitted layer by layer from wafer fabs to equipment manufacturers, and then to component suppliers.
Another major driving force for the localization of components comes from the rapid rise of domestic complete equipment. According to data from the China Semiconductor Industry Association, the overall localization rate of China's semiconductor equipment reached 30% in 2025, is expected to increase to 35% in 2026, and will further rise to 42% in 2027, with the localization process continuing to accelerate. Between complete equipment and components, a positive cycle has formed: the volume increase of complete equipment forces the localization of components, and the maturity of components feeds back into the competitiveness of complete equipment.
If downstream expansion and the rise of complete equipment are the pulling forces, then geopolitics is the pushing force. The United States has continuously tightened export restrictions on semiconductor equipment and key components to China, leading to a surge in tariff costs, making supply chain security a realistic issue that wafer fabs and equipment manufacturers have to face. Against this backdrop, localization has become a survival strategy. Only the localization of components can ensure the continuity and controllability of the supply chain.
02. The "Substance" of the Momentum: Technological Breakthroughs and Financial Data
The mini-line built by ACM in Lingang covers full-category validation capabilities including cleaning, electroplating, coating and developing, furnace tubes, and PECVD. Domestic components are now starting to run in real process environments. After pre-validation through the internal process line, components can directly enter the final validation at the customer end, significantly shortening the introduction cycle. Currently, ACM has achieved full localization of non-standard parts; significant breakthroughs have also been made in core standard components such as magnetic drive pumps, heaters, and filters. ACM is not an isolated case. Head equipment manufacturers such as Xinkailai, AMEC, Piotech, and HWATSING are all accelerating the localization of component supporting.
Data shows that among the components purchased by mainland wafer fabs, those with a relatively large proportion in amount mainly include Quartz components, RF Generators, and various Pumps, accounting for 10% or more. In addition, the procurement proportion of components such as various Valves, Chucks, Shower Heads for reaction chambers, and Edge Rings is also relatively high. In terms of technological breakthroughs in key components, a "localization map" is taking shape.
In 2025, Fortune Precision has completed the validation by key customers and achieved scaled mass production for its two major special projects: gas distribution plates and special coatings; multiple high-value products have passed validation in domestic and international advanced logic and advanced memory production lines, solving the localization problem of core parts for such advanced process models. In 2026, the focus will be on the market landing and capacity release of heating plates and valve products; the electrostatic chuck special project has formulated a 3-5 year long-term development plan, steadily promoting technological breakthroughs, customer validation, and industrialization landing. At the same time, it will continue to increase R&D investment in plasma reaction principles, new surface treatment technologies, and the construction of experimental and testing platforms close to application scenarios.
Shengong is one of the very few domestic manufacturers with complete manufacturing capabilities "from crystal growth to silicon electrode finished products". It supplies in batches to domestic etching equipment leaders such as NAURA and AMEC, and can be applied to mainstream domestic IC (Integrated Circuit) manufacturing production lines.
Feilihua is a core material supplier for Applied Materials, and also the first domestic quartz material enterprise to be certified by the world's top three semiconductor equipment manufacturers: Applied Materials, Lam Research, and Tokyo Electron (TEL). The certification cycle usually takes 2-3 years, with extremely high value. Its subsidiary Shanghai Shichuang has obtained certifications from AMEC and NAURA; domestic quartz components have been widely validated in wafer production lines and achieved partial batch shipments.
03. The "Trend" of the Momentum: From "Import Substitution" to "Reverse Export"
The momentum of domestic semiconductor equipment components is not only a domestic story but also begins to possess a global perspective. Recently, South Korea officially announced an industrial investment plan of over 10 trillion KRW. Samsung and SK Hynix will build two new wafer fabs respectively, while increasing investments in physical AI directions such as AI data centers and robotics. South Korea has capital and demand, but not necessarily sufficient supply chain support. As the scale of expansion continues to grow, a large amount of equipment, materials, and engineering supporting will ultimately require the participation of Chinese enterprises. This实质上 constitutes a historic opportunity for a new round of going global for the domestic semiconductor industry chain. Furthermore, this may drive the overseas expansion of domestic semiconductor equipment components.
In fact, these component enterprises have already laid out their strategies. Fortune Precision has shared the supply chain access qualifications of global head customers by investing in Compart Systems, achieving "borrowing a ship to go to sea". Jiangfeng Electronic has increased its investment in Jiangfeng Korea to improve the construction of its South Korean production base and enhance its international competitiveness. The large-diameter silicon materials of Shengong are directly sold to well-known Japanese and South Korean silicon component manufacturers, ultimately entering the supply chains of international giants such as Samsung, SK Hynix, Intel, and TSMC (Taiwan Semiconductor Manufacturing Company).
There are mainly two forms for domestic components to go global. The first is "following to go global". As domestic etching, cleaning, and thin film deposition equipment gradually enter overseas wafer fabs, the supporting components also go overseas. The complete equipment is the ship, and the components are the cargo; wherever the ship goes, the cargo is sold. The second is "independent exploration". Relying on cost advantages and rapid response capabilities, domestic components are directly cutting into the supply chain systems of international equipment manufacturers. For some non-core but high-volume components, international equipment manufacturers are increasingly willing to try Chinese suppliers.
This means that the role of domestic components is expected to change from past followers to participants in reverse export. Against the backdrop of the global semiconductor supply chain restructuring, this is a highly strategic variable.
04. The "Path" of the Momentum: How Far is it from Gaining Momentum to Becoming a Dominant Trend
However, there is still a long way to go for domestic semiconductor equipment components to truly "become a dominant trend".
First, the localization rate is still relatively low. The localization rate of quartz components and shower heads exceeds 10%, and vacuum pumps are about 5%-10%, while electrostatic chucks, O-ring seals, valves, and measuring instruments are even lower. Components related to lithography machines remain the weakest link in localization. The foundation of electrical products is particularly weak, with an obvious gap compared to international advanced levels.
Second, the validation cycle is a hard threshold. The validation cycle for key components requires at least 1 to 1.5 years. The chip manufacturing process has extremely high requirements for consistency, and component suppliers and equipment manufacturers must maintain high coordination. Customer stickiness and switching barriers are extremely high. From the validation of testing equipment to the introduction of real mass production equipment, there are countless process runs, stability tests, and yield validations in between.
Third is the squeeze from upstream raw materials and price wars. The raw materials required for the manufacturing of high-end metal components are basically monopolized by American and Japanese companies, leaving domestic component manufacturers lacking bargaining power on the cost end. At the same time, upstream raw material prices have risen, coupled with relatively fierce price wars among component enterprises in 2025, and obvious price suppression from the downstream industry chain. Moreover, the细分 market size of semiconductor components is small and fragmented, making it difficult to form economies of scale, which poses a continuous challenge to the profitability of enterprises.
Finally, surface treatment and special processes remain short boards. Semiconductor-grade surface treatment technology has extremely high requirements and is vastly different from ordinary industry. High-end functional components such as special welding, precision transmission, and superconducting magnets are still hard bones that domestic components need to overcome.
The two fully domestic component testing equipment from ACM Research (Shanghai) are a microcosm of the momentum of domestic semiconductor equipment components. Component localization is no longer about sporadic technological breakthroughs but has entered a new stage of systematic validation and scaled introduction. But gaining momentum is just the beginning, not the end. Only when components truly move from the testing line to the mass production line, and from domestic use to global sales, will the foundation of the domestic semiconductor industry be truly stabilized.