I. Project Background and Market Prospects

The global and Chinese ALD equipment markets are growing at a high speed

The global market: The global ALD equipment market size is expected to reach 6.8 billion US dollars in 2024, with a compound annual growth rate of 7.3% to 7.4% from 2025 to 2030. Among them, the integrated circuit field accounts for more than 70%.

Youdaoplaceholder6 Chinese market: The demand growth rate is expected to reach 37% in 2024, far exceeding the global average of 15%. The market size is projected to reach 1.413 billion US dollars in 2025 and is expected to become the world's largest market by 2030.

The core driving force: The integrated circuit manufacturing process is advancing towards 3nm and below. The demand for atomic-level thin film deposition in advanced structures such as 3D NAND and GAA architecture is surging. ALD technology has become a "must-have device" in key links such as HKMG and High-k media.

2. Localization policies and capital support

Policy inclination: China has included atomic-level manufacturing in its "future industries". By 2025, local fiscal support for ALD equipment enterprises is expected to reach 160 million yuan (up 33.3% year-on-year), and the special research and development funds from the Ministry of Science and Technology will increase to 190 million yuan (up 26.7% year-on-year).

Opportunities for domestic substitution: International giants (such as ASM and TEL) hold over 60% of the market share, but domestic equipment has achieved breakthroughs in mid-to-low-end processes (14nm and above). Angstrom's domestic production can rely on technological differentiation to enter the niche market.

Ii. Analysis of Core Competitive Advantages

1. Cost advantage: Domestic production significantly reduces costs and increases efficiency

<s:1> Direct cost reduction: After localization, the selling price of equipment can be 30% to 50% lower than that of imported ones. For instance, the ALD equipment of Yanwei Semiconductor is priced at 3 million US dollars per unit, which is approximately 35% lower than that of international brands. After Angstrom's localization, it is expected to further reduce costs through local supply chains (such as vacuum chambers, precursor delivery systems, etc.).

Comprehensive usage cost optimization: Adopting a dual-chamber architecture design can increase production capacity by 50% and reduce the unit wafer deposition cost by 30% to 40%. With the addition of domestic policy subsidies (such as tax reduction and exemption, special loans), the total cost of ownership advantage is significant.

2. Technical advantages: Compatible with advanced manufacturing processes and emerging scenarios

Atomic-level accuracy and conformance: ALD technology inherently possesses single-atom layer deposition, 100% step coverage (suitable for high aspect ratio structures), and uniformity within 1%, which can meet the advanced process requirements of 3D NAND storage capacitors, GAA transistor gate insulation layers, etc.

"Technical collaboration and iteration: After domestic production, it can be combined with the R&D resources of Angstrom China Research (such as the customer base of university laboratories) to develop new technologies such as plasma-enhanced ALD (PE-ALD) and space ALD, to increase the deposition rate (solve the pain point of slow rate in traditional ALD). It is compatible with emerging scenarios such as third-generation semiconductors (SiC/GaN passivation layers) and advanced packaging (TSV through-hole insulation layers).

3. Flexible and customizable: Responding to the differentiated demands of local customers

Process adaptation customization: In response to the expansion demands of domestic wafer fabs in logic chips (such as SMIC) and memory chips (such as Yangtze Memory Technologies Co., LTD.), multi-material compatible cavities (supporting oxides, nitrides, metals, etc.) can be customized to adapt to mature processes from 14nm to 28nm and 3D NAND stacking processes.

Integrated optimization of production lines: We offer a package service of "equipment + process solutions", such as jointly developing precursor formulas with domestic wafer fabs to shorten the verification cycle (verification for international brands takes 2-3 years, but it can be compressed to 1-1.5 years after localization).

4. Brand and customer base stability

<s:1> Brand trust foundation: As a representative of ALD equipment technology in the United States, Angstrom's domestic products can rely on the original technical reputation to quickly obtain verification opportunities from mainstream domestic wafer fabrication plants (such as Hua Hong Semiconductor and Changxin Memory), and gradually establish stable cooperation by referring to the "photovoltaic business self-generating + semiconductor breakthrough" model of Weidao Nano.

Enhance customer stickiness: Address the pain point of long after-sales cycles for international brands through localized services (such as 72-hour rapid response and spare parts inventory). In response to domestic customers' demands for supply chain security, we provide dual guarantees of "domestic substitution + technological autonomy" to consolidate our customer base.

Iii. Implementation Path and Risk Response

1. Implementation steps for localization

Phase One (1-2 years) : Establish a research and development center and implement the project. The joint university (such as the Institute of Microelectronics and Tsinghua University) has established cooperation with domestic research institutes and universities, set up assembly bases, achieved a 90% domestic production rate of core components (such as reaction chambers and temperature control systems), expanded the demand of scientific research users, integrated scientific research into production, and aims to enter the mature 14nm process market and obtain the first batch of verification orders.

Phase Two (3-5 years) : Tackle key "bottleneck" components such as the precursor delivery system and vacuum valves, and achieve a 100% domestic production rate. Develop more application fields for products, enrich product categories, establish cooperation with chip enterprises, expand scenarios such as 3D NAND and advanced packaging, and increase the target market share to 8%-10%.

2. Risks and Response Strategies

<s:1> Technical barriers: International giants (such as ASM, TEL) still have advantages in multi-chamber integration and yield control (defect rate <0.1/ square centimeter), but the gap needs to be narrowed through continuous R&D investment (annual R&D expenses not less than 15% of revenue).

The uncertainty of the trade environment: The export control of ALD equipment by the United States may restrict the transfer of core technologies. It is necessary to avoid risks through cross-licensing of patents and local R&D teams.

Iv. Conclusion

After the Angstrom atomic layer deposition equipment from the United States was localized in China, it can gain a differentiated competitive edge in the rapidly growing Chinese ALD market by relying on cost reduction of 30% to 50%, atomic-level precision technology adapted to advanced processes, customized services to respond to local demands, and dual stability of brand and customer base. It is suggested to seize the policy dividend period and adopt a three-step strategy of "technology introduction - local innovation - supply chain autonomy" to achieve a breakthrough from "replacing imports" to "leading technology". It is expected to become one of the mainstream suppliers of ALD equipment in China within 5 to 8 years.