Amid escalating geopolitical tensions, China’s optics industry faces multiple challenges, including technological blockades and disruptions to the rare earth supply chain, but also encounters a key opportunity for industrial upgrading.
The U.S. export ban on semiconductor equipment has had a ripple effect on the upstream optics industry, with imports of core components like high-precision gratings and photolithography machine lenses being restricted. The R&D cycles for high-end projects have been forced to extend by 40%. However, crises often breed opportunities. SuDa Weige developed a 1nm-level positioning grating, successfully replacing German products, reducing costs by 40%, and becoming the sole supplier to Shanghai Microelectronics for photolithography machines. The Institute of Optics and Electronics of the Chinese Academy of Sciences made a breakthrough in all-solid-state DUV photolithography light sources, bypassing the traditional reliance on fluorine-based gas, laying the foundation for processes below 3nm.
The U.S.-Ukraine mineral agreement has impacted the rare earth market. In response, China quickly implemented the “Rare Earth Management Regulations,” banning low-end exports and encouraging rare earths to move towards high-value-added sectors. The Ganzhou Rare Earth Research Institute improved extraction efficiency by 20%, ensuring the supply of high-end materials like laser crystals. At the same time, it restricted the export of KBBF crystals, a core material for photolithography machine light sources, which has prevented the U.S. from breaking through this technological barrier.
The blockage of traditional exports has forced companies to explore new markets. Leveraging the RCEP agreement, Lingyun Optics offers “optical instruments + data services” to Indonesia, binding customers with long-term service contracts. Meanwhile, the domestic “new infrastructure” boom, with growing demand in 5G optical communication and LiDAR, is expected to drive the market size in these areas to exceed one trillion yuan by 2025. Local governments, such as those in Zhongshan, offer up to 20 million yuan in rewards for technological transformations in optoelectronic enterprises, accelerating industrial clustering.
The industry is rapidly building an autonomous ecosystem. Bern Optics is collaborating with universities to industrialize microcrystalline glass technology, while Juguang Technology is expanding production lines in Switzerland, achieving a dual-region layout with “Swiss technology + Chinese manufacturing.” Local industrial funds and central subsidies are working in tandem to promote the conversion of technological achievements.
Looking ahead, China’s optics industry must focus on cutting-edge technologies such as deep ultraviolet lasers and quantum dot storage, deepen industrial chain integration, and precisely position itself in niche markets like healthcare and autonomous driving. It must efficiently leverage policy incentives. From passively responding to challenges to proactively breaking through barriers, China’s optics industry is striving to gain a stronger voice in global competition through technological countermeasures and ecosystem building.
