Industry Insights | Quartz Materials Drive the Rapid Development of High-tech Industries in China

The quartz material industry chain consists of upstream quartz sand, midstream quartz materials, and downstream quartz products.The upstream sector involves the production and supply of high-purity quartz sand. Currently, global companies capable of mass-producing high-purity quartz sand include Quartz Co., Ltd., Unimin, etc. The midstream quartz materials are usually stored in the form of rods, tubes, ingots, etc. The downstream quartz products are a series of devices made from quartz materials, such as quartz boats, bell jars, crucibles, etc., which are widely used in various industries.

According to different preparation processes, quartz sand can be divided into natural quartz sand and synthetic quartz sand. Synthetic quartz sand is not suitable for large-scale production due to its imperfect technology, high energy consumption, and high cost. Natural quartz sand can be further classified into ordinary quartz sand and high-purity quartz sand based on the different silicon dioxide content. High-purity quartz sand is a key raw material for preparing quartz materials in high-tech fields such as semiconductors, photovoltaics, and optical fibers. The purity of its products determines their downstream application areas.

The preparation processes for quartz materials mainly include electric melting, gas refining, and chemical synthesis. Among them, quartz materials made by electric melting have a low hydroxyl content, a wide range of applications, mature technology, and relatively low costs. Currently, they are widely used in the production of quartz materials.

According to different raw materials, quartz materials can be divided into natural quartz materials and synthetic quartz materials. Among them, the common preparation methods for natural quartz materials include electrofusion and gas refining methods. Quartz materials produced by the electrofusion method have a low hydroxyl content, a wider range of applications, and relatively lower costs, and are currently widely used in the production of quartz materials; due to the use of hydrogen-oxygen flame heating in the gas refining method, hydrogen will seep into the quartz material, resulting in higher hydroxyl content in the finished product and limiting its application range. Synthetic quartz materials are usually prepared using chemical vapor deposition (CVD), which can be further divided into direct synthesis, indirect synthesis, and PCVD methods. The finished products have a higher purity, but due to the immaturity of CVD technology and high preparation costs, they are currently used less frequently.

The production and supply capacity of high-quality quartz ore and high-purity quartz sand, the layout of multiple links in the industrial chain, and the technical certification of top international manufacturers are key success factors for enterprises in China's quartz material industry. These can help enhance the strength of enterprises and improve their industry status.

Firstly, high-quality quartz ore and high-purity quartz sand supply and production resources are the magic weapons for quartz material manufacturers to succeed.China's high-purity quartz ore resources are scarce, and the import volume of high-purity quartz sand is enormous. Every year, China needs to import a large amount of high-purity quartz sand, raw ore, and high-end quartz products from other countries. The mineral reserves that can truly be used as raw materials for high-purity quartz materials in China are limited in quantity and small in scale. High-purity quartz sand is the core raw material for producing quartz materials and products, and currently, there are few companies in the world that can mass-produce high-purity quartz sand. Therefore, rich quartz ore resources and high-purity quartz sand production technology are one of the key success factors for enterprises in the industry.

Secondly, a complete industrial chain layout is crucial for quartz material production enterprises.The industrial chain of quartz material enterprises is relatively complex, including processes from raw material quartz sand to quartz materials themselves, and then to quartz products. The downstream application industries include different fields such as semiconductors, photovoltaics, optical fibers, and optics. Due to the complexity of the industrial chain, most quartz manufacturers can only cover part of the process flow, resulting in weaker bargaining power for their companies. Leading domestic enterprises in the industry have been continuously developing in recent years, with leading domestic companies represented by Quartz Co., Ltd. expanding upstream and downstream of the industrial chain to achieve full coverage of the entire industrial chain and enhance the company's industry influence.

The certification resources for top semiconductor manufacturers' technologies also play an important role in the development of quartz material enterprises.The main application field for quartz downstream is semiconductors, and quartz products are a key consumable in semiconductor processes.semiconductor equipmentManufacturers will conduct qualification certifications for high-purity quartz sand, quartz glass material manufacturers, and quartz device processors. Only products from suppliers that have passed the qualification certification are eligible to enter the other party's supply chain procurement catalog. Therefore, quartz manufacturers must pass AMAT,LAM ResearchOnly after being certified by globally leading semiconductor equipment manufacturers such as TEL is it possible to enter the mainstream semiconductor supply chain system. Therefore, the product certification qualifications of semiconductor equipment manufacturers are a key success factor for the application of quartz products in the semiconductor industry.

Quartz materials possess excellent physical and chemical properties such as high purity, high temperature resistance, corrosion resistance, and wide spectral transmittance. These characteristics enable them to meet the production requirements for temperature, deformation performance, and light transmittance in semiconductor manufacturing processes, satisfying the needs of the rapidly developing semiconductor industry. They have become an indispensable important auxiliary material for the development of the semiconductor industry.

Domestic leading semiconductor-grade quartz material manufacturers have developed and manufactured a variety of semiconductor-grade quartz products, achieving wide coverage and precise matching of the diversified needs of downstream customers, and possess broad growth potential. Against the backdrop of national encouragement for the localization of semiconductor materials and equipment, as well as continuous progress in chip manufacturing processes, domestic leading semiconductor-grade quartz material and product manufacturers have launched a rich portfolio of products to meet various application scenarios of downstream customers and seize the historical opportunity of rapid development of the national semiconductor industry.

The application of quartz materials has widely covered multiple key processes in semiconductor manufacturing, and their quality and processing accuracy directly affect the yield of semiconductor products. Currently, in the semiconductor production process, typical applications of quartz materials include: quartz crucibles, quartzFlow guide tubeUsed in the silicon single crystal manufacturing process; quartz boats and quartz supports made of quartz tubes are used in IC epitaxy, deposition, and diffusion; quartz mask substrates are used in photolithography engineering; quartz rings are used in etching processes; quartz cleaning tanks and quartz baskets are used in grinding and cleaning processes, etc.

The semiconductor quartz industry has high technical barriers, and quartz manufacturers need to pass certification by leading global semiconductor equipment manufacturers before they can enter the mainstream semiconductor supply chain system. In recent years, quartz material manufacturers in China have continuously developed their own technologies and have acquired the capability to mass-produce high-quality semiconductor quartz products, greatly enhancing the competitiveness of their products and their position in the supply chain for semiconductor quartz products.

In the future, the continuous expansion of downstream application fields for semiconductors and the overall improvement of domestic localization rates in the semiconductor industry will bring tremendous development opportunities for quartz materials in the semiconductor field. At the same time, advancements in chip manufacturing processes are driving continuous improvements in the purity and performance requirements for quartz materials in the semiconductor field. Leading quartz material companies with advanced technology possess significant competitive advantages.

Firstly, downstream application fields represented by semiconductors will accelerate their development.With the maturity of mobile internet technology and the rise of new technologies such as the Internet of Things and artificial intelligence, intelligence has become a mainstream trend in various fields of social life. Traditional industries are facing transformation and upgrading. Semiconductors are essential key electronic components in the process of industrial intelligence, serving as the foundational platform for the realization of intelligent functions in new products and the core carrier of new technology applications. The acceleration of new technology application scenarios and the continuous upgrading of existing technologies will drive downstream demand for semiconductor products, promoting the integration of the semiconductor industry with new technologies. In recent years, the downstream application fields of integrated circuits such as consumer electronics, information and communication technology, and automotive electronics have developed rapidly. The market demand for integrated circuits has grown rapidly, driving a significant increase in demand for upstream quartz materials.

Secondly, the improvement in the localization rate of semiconductor materials and equipment will bring new development opportunities to the quartz industry.In 2020, the shortfalls in the semiconductor industry regarding high dependence on upstream materials gradually became apparent, leading to a 'chip shortage' across multiple industries in China. Subsequently, there has been a significant increase in guiding policies for tackling key shortcoming technologies in the domestic semiconductor industry. Currently, mainland Chinese integrated circuit companies still have a gap in global market share compared to countries such as the United States and South Korea, indicating that there is much room for progress in the localization of integrated circuits. China is actively investing in building wafer production lines of various sizes to accelerate the localization process of semiconductor materials. In addition, China's wafer manufacturing equipment still highly relies on imported equipment. The improvement in the domestic substitution rate of semiconductor equipment is an inevitable trend for China to improve its semiconductor industry and build a complete semiconductor industrial chain. Therefore, quartz materials, which are key upstream materials in the semiconductor industry, are expected to embrace new development opportunities under the impact of increased localization rates of semiconductor materials and equipment.

In addition, the advancement of chip manufacturing processes will also raise requirements for upstream quartz materials.As an important material in the semiconductor production process, the impurity content, raw material compatibility, surface particle quality, stress quality, and other aspects of quartz materials can all affect the yield of semiconductor products. Currently, only a very small number of quartz material providers in China have obtained certification from major international semiconductor equipment manufacturers. Therefore, domestic leading quartz material companies that have obtained certification from international semiconductor equipment manufacturers, are deeply involved in the industry and specific segments of the semiconductor market, focus on research and development, and lead in technology and product quality are expected to maintain a significant competitive advantage.

In summary, quartz materials possess superior physical properties and can be widely applied in industries such as semiconductors. With the optimization of the quartz material industry chain layout, the expansion of market demand, and the encouragement of relevant national policies, the future development prospects of China's quartz material industry are promising. Quartz materials will continue to serve as the 'golden nugget' driving the rapid development of China's high-tech industries.