Qnity Invests $1.5 Billion to Expand CMP Materials Supply

On October 26, semiconductor materials supplier Qnity announced a $1.5 billion expansion plan, adding four new plants in Taiwan, Korea, Arizona and Delaware, scheduled to come online between 2027 and 2028.

Qnity said the expansion targets advanced-node and advanced-packaging demand, with CMP (chemical mechanical planarization) materials among the priorities. Its CMP materials business grew about 20% this year, as demand for polishing pads and slurries rose alongside advanced logic and memory capacity.

The expansion timeline is aligned with capacity build-out for advanced nodes such as TSMC's 2nm. Localized materials supply shortens lead times, reduces logistics and tariff exposure, and supports closer collaboration with fabs during process qualification.

At the industry level, SEMI expects the global semiconductor materials market to grow from $73.2 billion in 2025 to $92 billion in 2027. As fabs move from construction into volume production, demand for high-frequency consumables such as polishing pads and slurries should continue to rise with capacity ramps.

For domestic CMP materials suppliers, faster expansion by global leaders means tougher competition, but it also confirms the rigid demand for high-performance polishing materials at advanced nodes. Under both localization and import-substitution themes, product consistency and batch-to-batch stability remain the key barriers to adoption.

Source: Nikkei Asia / LAVX News