Analysis of Demand Prospects and Order Growth Sustainability in Jianghua Micro’s Wet Electronic Chemicals Industry

Based on the public information I collected,

[0]. This figure may come from unofficial channels or market rumors from a specific period, and it is recommended that you verify it through listed company announcements or periodic reports.

However, based on industry data and the company’s public information, I can systematically analyze the demand prospects and sustainability of the wet electronic chemicals industry in which Jianghua Micro operates.

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According to industry research data, the global and Chinese wet electronic chemicals markets are in a stage of rapid growth:

Indicator	2024 Data	2025 Forecast
Global Market Size	USD 10.102 billion	Continuous Growth
Chinese Market Size	RMB 22.36 billion	RMB 29 billion
Chinese Market Size of Wet Chemicals for Semiconductors	RMB 7.93 billion	RMB 8.6 billion
Demand for Wet Chemicals for Semiconductors	1.256 million tons	1.543 million tons

[1]

Wet electronic chemicals are mainly used in three fields: semiconductors, display panels, and photovoltaics, and demand in all three fields is showing growth:

• Semiconductor Industry
  : As wafer sizes evolve to 12 inches and demand for advanced processes increases, the demand for high-end wet electronic chemicals of G4-G5 grades has risen significantly. The localization rate of wet chemicals for semiconductors in China has increased to 44%[1].
• Photovoltaic Industry
  : Benefiting from global energy transformation and declining photovoltaic installation costs, solar cell production continues to grow, driving up demand for wet electronic chemicals.
• Display Panel Industry
  : With the rapid development of OLED technology, requirements for the quality and usage volume of wet electronic chemicals are continuously increasing.

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Jianghua Micro recently disclosed an important capacity expansion plan:

• Investment Project
  : Zhenjiang Jianghua Micro, a wholly-owned subsidiary, plans to invest in the construction of a “37,000-ton/year ultra-high-purity wet electronic chemicals project”, with an estimated total investment of RMB 288.8279 million[1]
• Product Grade
  : Meets the highest SEMI standard, G5 grade, which can meet the needs of 12-inch mature and advanced process wafer manufacturing
• Existing Capacity
  : Some production lines of the Zhenjiang Phase II project have entered the trial production stage, with a designed annual capacity of 100,000 tons

• The company’s G5-grade sulfuric acid, ammonia water, and hydrochloric acid were put into production in Zhenjiang in 2023
• Products cover core categories such as etching solutions, stripping solutions, and developing solutions
• Focuses on serving the Yangtze River Delta semiconductor industry cluster to shorten supply chain distances

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Driving Factor	Specific Performance
Accelerated Import Substitution	There is still significant room for improvement in the localization rate of wet electronic chemicals for semiconductors, and the trend of import substitution for high-end categories is clear
AI-driven Structural Demand	AI servers and high-end PCB process upgrades have driven significant growth in demand for functional wet chemicals
Capacity Release	The new project will significantly increase production capacity after commissioning, supporting order growth
Policy Support	National policies continue to support independent and controllable semiconductor materials

• Intensified Industry Competition
  : European, American, and Japanese enterprises still dominate the high-end market, and domestic enterprises face fierce competition
• Technology Iteration Risk
  : Advanced processes have continuously increasing requirements for chemical purity, leading to sustained pressure for technological upgrading
• Downstream Cyclical Fluctuations
  : The semiconductor industry is cyclical, and fluctuations in downstream capital expenditure may affect demand
• Raw Material Price Fluctuations
  : Fluctuations in the prices of basic chemical raw materials may affect gross profit margins

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Based on the following analysis, the demand for wet electronic chemicals

:

1. Steep Growth Slope
   : The industry’s expected compound annual growth rate (CAGR) from 2024 to 2028 reaches 10.68%, maintaining double-digit growth[2]
2. Broad Space for Import Substitution
   : The localization rate of wet chemicals for semiconductors is only 44%, and high-end products still rely on imports
3. Continuous Expansion of Downstream Capacity
   : Local wafer fabs such as SMIC, China Resources Microelectronics, Yangtze Memory Technologies, and ChangXin Memory Technologies continue to expand production capacity
4. Dual Drivers of AI and New Energy
   : The AI chip and new energy industries have seen rapid growth in demand for high-end wet electronic chemicals
5. Continuous Policy Support
   : The national “14th Five-Year Plan” lists new materials as a key supported field

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• Short-term
  : Order growth is sustainable, but attention needs to be paid to the specific growth rate level
• Mid-term
  : With capacity release combined with import substitution, the certainty of performance growth is relatively high
• Long-term
  : The industry is in a structural upturn cycle, and demand has not peaked

1. Cyclical fluctuations in the downstream semiconductor industry
2. New project commissioning progress falls short of expectations
3. Intensified industry competition leads to declining gross profit margins
4. Product substitution risks brought by technological iteration

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[0] Jinling AI Financial Data System - Jianghua Micro Company Profile and Stock Price Data
[1] ASIACHEM Consulting - “Summary of Domestic Wet Electronic Chemicals Projects in 2025” (https://www.eet-china.com/mp/a466166.html)
[2] LeadLeo Research Institute - “2024 LeadLeo Entry Report Series on Wet Electronic Chemicals” (https://pdf.dfcfw.com/pdf/H3_AP202408261639462974_1.pdf)