China Securities: Fluorine-based New Materials Poised for High Growth Driven by Semiconductors and AI

Everbright Securities (光大证券) has released a research report indicating that leading Chinese fluorine chemical companies are accelerating their expansion into fluorine-based new materials, aiming to establish a second growth trajectory. This strategic move is significantly propelled by advancements in the semiconductor industry and the burgeoning AI sector. In the semiconductor domain, high-purity electronic-grade hydrofluoric acid, crucial for chip manufacturing, was historically dominated by Japanese and American firms. However, domestic Chinese enterprises have recently overcome technological hurdles in ultra-pure processing, leveraging their integrated industrial chains. Consequently, electronic-grade hydrofluoric acid has successfully passed stringent certifications from major domestic and international foundries and is now entering a phase of scaled production. Simultaneously, the rapid growth in computing power for AI, High-Performance Computing (HPC), and hyperscale data centers is increasing heat density, rendering traditional air-cooling methods insufficient for high-power scenarios. Liquid cooling is emerging as the essential solution for efficient heat dissipation. Fluorine chemical companies are responding to this trend by actively developing high-performance fluorinated coolants, such as perfluoropolyethers (PFPE). These materials offer superior insulation, non-flammability, and excellent thermal management properties, making them indispensable for high-safety, high-power applications like immersion liquid cooling. The development of these advanced fluorine-based materials is guiding fluorine chemical enterprises towards a deeper transformation into high-technology, high-value-added sectors.