China has begun mass production of domestically developed immersion deep-ultraviolet (DUV) lithography machines, marking a major milestone in Beijing’s drive to strengthen semiconductor manufacturing and reduce reliance on foreign technology.
The production initiative is being led by Shanghai Aishengna Electronic Technology Group, a state-owned company that has brought together engineering teams from several leading Chinese lithography firms, according to a source familiar with the project. The source requested anonymity because of the sensitivity of the matter.
The breakthrough represents a significant advance in China’s campaign for semiconductor self-reliance, a strategic priority under President Xi Jinping. However, industry experts say the new machines remain several years behind those produced by Dutch chip equipment maker ASML and are unlikely to pose an immediate commercial challenge.
Immersion DUV lithography systems are essential to semiconductor manufacturing because they enable the production of increasingly sophisticated chips. The technology uses a thin layer of water between the projection lens and the silicon wafer, allowing finer circuit patterns than conventional dry lithography. Through multiple-patterning techniques, the systems can also produce more advanced semiconductors.
The Chinese-made machines are expected to be delivered later this year to leading domestic chipmakers, including Semiconductor Manufacturing International Corp (SMIC), Hua Hong Semiconductor and memory chip producer ChangXin Memory Technologies (CXMT), according to technology publication The Information. The report said China plans to produce about five machines this year, with output expected to increase to around 20 units in 2027.
Despite the achievement, the source said the equipment still requires further testing before it can match the performance and reliability of ASML’s systems in high-volume commercial manufacturing. Analysts say precision, production speed and long-term operational reliability remain key challenges.
Even so, the development could provide Chinese chipmakers with a domestic alternative if Western governments further tighten export controls or restrict maintenance support for foreign-made equipment.
China has been barred by the United States from purchasing ASML’s most advanced extreme ultraviolet (EUV) lithography systems, while Dutch export controls have also limited access to some advanced DUV equipment. Those restrictions have accelerated Beijing’s investment in developing domestic alternatives.
Shanghai Aishengna was established in August 2023 with registered capital of seven billion yuan (about $1 billion) and is backed by Shanghai Electric Holding and a subsidiary of Shanghai International Trust. Corporate records show the company has integrated engineering teams from lithography startup Yuliangsheng and Shanghai Micro Electronics Equipment (SMEE), both of which play key roles in China’s semiconductor development programme.
Although news of the breakthrough briefly weighed on ASML’s share price, analysts say it is unlikely to have a meaningful impact on the Dutch company’s earnings in the medium term. They note that producing a limited number of immersion DUV machines is far different from manufacturing highly reliable systems for large-scale commercial chip production, where precision, yield and durability remain critical.
Goodness Anunobi
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