Fuyang Xinyihua Material Technology (also known as Sineva), a subsidiary of Xinyihua Technology Group and a major player in the Chinese photoresist market, recently completed a D-round funding amounting to over 500 million yuan ($69 million). The leading investor in this funding round was Shengjing Jiacheng Venture Capital. The latest investment brings Fuyang Xinyihua’s portfolio valuation to over 13 billion yuan ($1.82 billion). This news comes on the heels of news about JBD’s new round of financing, and Xiahe breaking ground on a $210 million OLED materials fab.
According to the financial press in China, Fuyang Xinyihua being in the display and semiconductor industries holds a massive strategic national interest. As of 2022, mainland China led in global TFT-LCD production capacity, contributing 66% to the world’s total. With the OLED material market estimated at around $2.4 billion, local expectations are that China’s OLED panel production capacity will comprise more than half the global capacity by 2025.
However, domestic production of key upstream raw materials like high-end photoresists and OLED quality materials is yet to match the pace of growth or the expectations for future growth. Fuyang Xinyihua’s strategy to address this involves diversifying product and technology application in display photoresist, semiconductor photoresist, special photoresist, OLED materials and cutting-edge materials, seeking to strengthen its position in the electronic materials market.
The company has successfully localized high-end photoresist for TFT-LCD displays, working with major industry players like BOE and TCL Huaxing. Fuyang Xinyihua’s investment in technological development has also seen the company establish cooperative relationships with a number of 12-inch fabs in its semiconductor photoresist business, with its KrF products currently under review by multiple customers. Their OLED high-quality materials have earned certification and have started shipping following approval from key customers in the industry.
