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China is working to develop its own advanced photoresist materials to diminish reliance on Japan's JSR Corporation, the leading supplier in this critical segment of semiconductor manufacturing. The Chinese government aims to resolve this issue within five years, with Xuzhou B&C Chemical targeting large-scale production of advanced KrF and ArF photoresists.

The primary challenge is creating suitable photoresists for extreme ultraviolet (EUV) lithography, essential for modern integrated circuits. This strategic move is part of China's broader ambition to achieve independence in chip production.