Dinglong Gains After Chinese Firm's Unit Gets Excellent Supplier Award for Chip Polishing Slurries

(Yicai) May 26 -- Shares of Dinglong jumped after the Chinese chemical new materials supplier said its subsidiary has received an Excellent Supplier Award from a prominent logic chip foundry in China, recognizing its outstanding performance in the stable supply and supporting services of two types of semiconductor polishing slurries.Dinglong [SHE: 300054] closed up 3.3 percent at CNY79.55 (USD11.71) a share today. The ChiNext Index, which tracks firms listed on Shenzhen's Growth Enterprise Market, rose 0.5 percent.Dingze New Material Technology's slurries use self-developed and produced abrasive particles as core materials, Dinglong announced late yesterday. The high-k metal gate alumina polishing slurry is a critical material for advanced process chip manufacturing, characterized by high technical barriers and stringent process compatibility requirements, which have long been monopolized by overseas companies, it pointed out.Owing to the excellent product performance and stable quality consistency, Dinglong has seen three years of stable bulk supply for the foundry, fully meeting its demand for raw materials in the mass production of advanced process chips, the Wuhan-based firm stressed.In addition, Dinglong's copper barrier layer polishing slurry for mature processes has also excelled in competition with Chinese peers, not only securing orders from the foundry and achieving long-term bulk supply, but also recently landing orders from a new client in the mature process wafer manufacturing sector, making it its third relevant customer, the company noted.Dinglong's developed silicon carbide substrate polishing slurry has also recently secured bulk orders from several clients, marking the entry of the firm's products into the polishing application field for third-generation semiconductor SiC substrates, the company said, noting that the achievement is a critical breakthrough from zero to one in the market for third-gen semiconductor materials.The breakthroughs fully show Dinglong's mastery of core technical barriers and mature market-oriented service capabilities in the area of semiconductor chemical-mechanical polishing slurries, the company pointed out. They will help to deepen the firm's ties with key Chinese wafer manufacturers, accelerating the localization process of core consumables for advanced processes, mature processes, and third-gen semiconductors, it added.Semiconductor polishing slurries are a suspension made by mixing liquid chemical agents with nano-sized solid particles and are a core consumable in the chip manufacturing process. Their formulation has a high technical barrier and a lengthy customer certification cycle, with the global market dominated by overseas companies.Dinglong has a production line for polishing slurries with an annual capacity of 5,000 tons at its headquarters in Wuhan and a plant in Xiantao with an annual capacity of 10,000 tons of CMP slurries, along with supporting production lines for nano-sized abrasive particles.Editor: Martin Kadiev