The report released by the International Semiconductor Association (SEMI) predicts that there will be 62 new fabs in the world in the next four years to 2020, and China will occupy 26, and 19 new fabs will be built in the next two years. China will occupy 10 seats. SEMI estimates that the amount of spending on China's fab construction will exceed US$4 billion in 2017, accounting for 70% of the total global fab spending. As these fabs are put into production, wafer production will increase significantly.

Semiconductor materials are an important part of the wafer production process, and the wave of wafer construction will drive the surge in polishing pad demand. Domestic materials have obvious advantages in price and service. The construction boom led by mainland China is expected to drive the accelerated development of domestic semiconductor materials manufacturers. CMP polishing pad is one of the core materials of semiconductors, and the progress of localization is expected to accelerate.