On April 4, 2025, China's State Administration for Market Regulation (SAMR) announced an investigation into DuPont China Group Ltd. for alleged violations of China's Anti-Monopoly Law. The probe is part of a broader effort to ensure fair market practices within China's growing semiconductor and materials sectors.

Founded in 1802 and headquartered in Wilmington, Delaware, DuPont is a global powerhouse with a rich history rooted in research and innovation. The company operates across diverse industries, including chemicals, agriculture, food and nutrition, electronics, textiles, and automotive, maintaining a significant presence in the global market. Despite recent challenges, DuPont remains a key player in the semiconductor industry, where its electronic and industrial division continues to contribute substantially to its earnings.

A Century of Transformation and Innovation

DuPont's history has seen several transformative events. In 2015, the company merged with Dow Chemical in a deal valued at $130 billion, briefly becoming the largest chemical company in the world. However, in 2019, due to strategic restructuring, the company split into DuPont, Dow Chemical, and Corteva Agriscience, reducing its global revenue from $22.6 billion in 2018 to $12.07 billion in 2022.

Despite this shift, DuPont's electronic materials division, which encompasses semiconductor-related products, remains a cornerstone of its profitability. In 2023, the division generated $1.9 billion in revenue, particularly from key semiconductor products like CMP polishing pads and photoresists, where DuPont holds the number three position globally, behind JSR and TOK.

DuPont's Strong Footprint in China

DuPont's relationship with China dates back to 1863, and the company has significantly expanded its operations in the country over the decades. It established a presence in Beijing in 1984 and formed DuPont China Group Ltd. in 1988, becoming one of the first multinational companies to invest in China. Today, DuPont operates over 40 wholly-owned and joint venture companies in China, with approximately 6,000 employees. The company has also invested heavily in local R&D, including the 2005 launch of its China R&D center, which focuses on photovoltaic solutions, biobased materials, and automotive materials.

Notably, DuPont's semiconductor-related products have been integral to its success in China, particularly in CMP polishing pads and photoresists. DuPont's dominance in the CMP polishing pads market remains unchanged, with a leading market share of 79% before its merger with Dow and continuing its leadership post-split. Despite these successes, DuPont has faced scrutiny in China. In 2022, reports surfaced that the company had halted supply of key semiconductor materials, including CMP pads and photoresists, to mainland China, causing a stir in the industry.

Facing New Challenges and Scrutiny

The latest investigation comes at a time when DuPont's market position in China is being tested. While DuPont's innovation in semiconductor materials, such as CMP pads and photoresists, continues to make it a dominant player, the company must navigate increasing regulatory scrutiny in China. The investigation's connection to the 2022 supply suspension remains unclear, but the case highlights the growing pressure on foreign companies to comply with China's antitrust laws and local regulations.

As DuPont continues to push forward with technological innovation, particularly in the semiconductor sector, it will need to balance compliance with market dynamics. The company's future in China, where it has flourished for decades, will depend on how it navigates these regulatory challenges while maintaining its competitive edge in advanced semiconductor materials.

Conclusion

DuPont's journey from a chemical titan to a leader in high-tech industries mirrors the evolution of global industrial markets. Its ongoing success in semiconductor materials has solidified its reputation as a hidden champion in the sector, especially in China. However, as regulatory challenges intensify, DuPont's ability to balance innovation and compliance will be key to sustaining its growth and market leadership in the years ahead. The outcome of the ongoing investigation will be closely watched as it could impact the company's operations in one of its most crucial markets.