Gf Securities Co.,Ltd. has released a research report indicating that with the rise of semiconductor manufacturing, advanced ceramic components, serving as core consumables for front-end equipment, are transitioning from technological breakthroughs to mass production in the domestic substitution wave.
The combination of domestic wafer fab expansion and supply chain security demands is creating a tailwind for local ceramic component makers, which are expected to benefit significantly from the rising localization rate. The brokerage firm recommends attention to the semiconductor equipment components sector and suggests focusing on core beneficiaries along the supply chain.
Advanced ceramics: the critical consumables and structural parts in front-end semiconductor equipment
Advanced ceramic materials, including alumina, aluminum nitride, silicon carbide, and silicon nitride, offer a combination of high hardness, temperature resistance, corrosion resistance, electrical insulation, and matched thermal expansion coefficients. These properties make them essential in etching, thin film deposition, and oxidation/diffusion processes, where they are used in forms such as electrostatic chucks, ceramic heaters, gas showerheads, focus rings, and ceramic chamber liners. These components directly support wafers, build reaction environments, and enable precise temperature control, making them rigid consumables that ensure chip processing precision and yield rates.
Advanced ceramic components are widely applied in precision wafer handling and temperature management within semiconductor equipment. Electrostatic chucks use electrostatic adsorption to firmly hold wafers in the reaction chamber while utilizing backside gas for precise temperature control on the wafer surface. They have become the standard configuration in etching, CVD, PVD, and ion implantation processes, replacing traditional mechanical chucks and vacuum suction devices, directly determining wafer processing stability and process yield rates.
Ceramic heater plates, built on high thermal conductivity ceramics like aluminum nitride, enable uniform wafer heating and rapid temperature ramp-up in high-temperature processes such as oxidation diffusion and CVD, making them core components for ensuring thin film deposition quality. Gas showerheads distribute reaction gases evenly across the wafer surface, with ceramic materials effectively resisting plasma etching wear to maintain process uniformity. Focus rings confine the plasma distribution range, preventing electric field distortion at wafer edges and improving etching uniformity. Ceramic chamber liners coat the inner walls of reaction chambers, resisting chemical corrosion from aggressive gases, extending chamber service life, and reducing particle contamination.
These ceramic parts collectively perform critical functions including wafer support, temperature control, gas distribution, plasma confinement, and chamber protection, working together to ensure the stable operation and high yield of semiconductor processes.
Global market shows oligopolistic structure while local players enter accelerated volume ramp-up phase
According to QYResearch, the global market for structural ceramic components used in semiconductors is estimated at approximately $3.147 billion in 2025 and is projected to reach $5.163 billion by 2031, representing a compound annual growth rate of about 8.6%. However, the high-end ceramic components market remains dominated by major players such as Japan's Kyocera, NGK Insulators, and US-based CoorsTek, with Japanese companies holding over 50% of the global share and domestic localization in China's high-end market standing below 10%.
The competitive landscape of China's advanced ceramic components sector is relatively concentrated, with key local players such as Kema Technology, Fureda, and Jiangfeng Electronics achieving breakthroughs in their respective segments. Kema Technology has pioneered batch production of ceramic heaters and leads the domestic market share in advanced structural ceramics for semiconductors. Jiangfeng Electronics has established electrostatic chuck production capacity, with high-precision alumina ceramic components in the mass production stage. Fureda has completed the integration of Fureda Hua to enter the copper-clad ceramic substrate field and is actively positioning itself in the AlN heater segment.
Driven by three key factors, domestic 12-inch wafer fabs continuing expansion drives stocking demand, advanced process node evolution increases ceramic component consumption per equipment unit, and supply chain security considerations prompt downstream customers to accelerate domestic substitution, local ceramic component manufacturers are entering a critical window period transitioning from technological breakthroughs to batch volume production.
Risk warnings
Potential risks include below-expectation development of the AI industry and downstream wafer fab expansion, prolonged certification cycles for advanced ceramic component technology with slower-than-expected customer adoption, subpar product yield and cost control by domestic manufacturers, intensifying market competition, and supply chain security risks.
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