China starts mass producing domestic DUV lithography tools
Recipients of the new equipment include Semiconductor Manufacturing International Corp, Hua Hong Semiconductor, and ChangXin Memory Technologies
China has begun the mass production of domestically developed immersion deep ultraviolet (DUV) lithography machines, marking a major milestone in Beijing's push to achieve self-sufficiency in semiconductor manufacturing. The new homegrown tools represent a significant technological step forward for the country as it seeks to reduce its reliance on foreign technology giants.
The Information reported that a state-backed manufacturer has started producing the immersion DUV tools, which are scheduled for delivery to leading Chinese chipmakers this year. Recipients of the new equipment include Semiconductor Manufacturing International Corp (SMIC), Hua Hong Semiconductor, and ChangXin Memory Technologies (CXMT). Sources familiar with the matter declined to identify the manufacturer due to the sensitivity of the situation.
The news triggered a sell-off in global semiconductor equipment shares. BE Semiconductor Industries tumbled about 8.5%, Soitec fell 5%, and Infineon Technologies dropped nearly 3%. Although the new technology could eventually challenge ASML in the Chinese market, industry analysts noted that the domestic systems still lag in performance and reliability. Additional testing is required before full-scale deployment, leaving ASML's competitive advantages intact for now. Initial output will remain limited, with plans to produce roughly five DUV machines this year and approximately 20 in 2027.
Lithography has long been one of the most challenging bottlenecks in China's domestic chip supply chain. Historically dominated by Dutch supplier ASML, immersion DUV machines print complex circuit patterns onto silicon wafers and represent the most advanced tools available to Chinese firms following trade restrictions on extreme ultraviolet (EUV) systems. While China is also working on a domestic EUV machine, that technology remains at the prototype stage.
The mass production of domestic immersion DUV equipment offers Chinese chipmakers a vital alternative supply source. This development comes as the United States considers stricter export rules regarding foreign lithography tools and servicing within China.
