Introducing the electronic gas industry, known as the "lifeblood" of the electronics industry, especially in the semiconductor field, where its demand is second only to large silicon wafers.

1) Rapid growth in downstream demand for electronic specialty gases

The downstream applications of electronic specialty gases are mainly in integrated circuits, panels, photovoltaics, and other fields, accounting for over 90% of demand. Electronic specialty gases are used throughout semiconductor manufacturing processes such as thin film, etching, doping, vapor deposition, and diffusion.

In the field of integrated circuits, the compound growth rate of sales in Mainland China is 20.27%, far exceeding other regions globally.

In panel manufacturing, China's panel production capacity is rapidly increasing its global share.

With the continuous expansion of downstream demand, the scale of China's electronic specialty gases has grown from 3.9 billion in 2010 to 12.1 billion in 2018, and is expected to reach 23 billion by 2024. Coupled with the domestic substitution process, the growth rate of domestic enterprises will be even faster.

2) Accelerating domestic substitution

In the domestic market, four companies—Air Products, Linde Group, Air Liquide, and Taiyo Nippon Sanso—control 88% of the market, while domestic enterprises hold only 12%.

As a key material, specialty gases have seen breakthroughs by domestic companies such as Yake Technology, CSSC 718 Institute, Huate Gas, and Haohua Technology, gradually achieving import substitution under strong national policy support.

3) Sorting out individual stocks in the industry chain

Huate Gas: The first to achieve import substitution for nearly 20 products, including high-purity carbon tetrafluoride, high-purity hexafluoroethane, photolithography gas, and high-purity carbon dioxide, entering the supply chains of SMIC, Huahong, and YMTC.

Haohua Technology: A leading domestic supplier of nitrogen trifluoride, with self-developed hydrogen selenide and green nitrogen tetroxide achieving import substitution, holding a leading advantage in niche military products.

Jinhong Gas: An important supplier of specialty gases and bulk gases in East China, establishing partnerships with United Microelectronics, China Resources Microelectronics, HLMC, SPIL, and Silan Microelectronics.

Heyuan Gas: A well-known private professional gas company in Central China, offering products including industrial gases, food-grade liquid nitrogen, and medical oxygen.

Yake Technology: Its subsidiary Comet is a leading domestic supplier of fluorine-containing electronic specialty gases, with customers including XD Group, Pinggao Group, Shandong Taikai, New Northeast Electric, Sieyuan Electric, and ABB.

Nanda Optoelectronics: Its acquired Feiyuan Gas is a major supplier of nitrogen trifluoride and sulfur hexafluoride to TSMC, SMIC, and BOE.