China DUV Lithography Machines Enter Domestic Production
China has started manufacturing domestically developed immersion deep ultraviolet (DUV) lithography machines, marking an important step in the country’s efforts to strengthen its semiconductor equipment capabilities. The development, first reported on Monday, could gradually reduce reliance on imported chipmaking tools, although the new systems still trail established alternatives in performance and reliability.
The newly produced machines are expected to reach leading Chinese semiconductor manufacturers later this year. Planned recipients include Semiconductor Manufacturing International Corp (SMIC), Hua Hong Semiconductor and ChangXin Memory Technologies, according to people familiar with the matter.
Following the report, shares of Dutch lithography equipment supplier ASML fell 4.6%.
Domestic Production Begins
The report said a state-backed Chinese manufacturer has begun producing immersion DUV lithography systems. However, the identities of the company and the sources were not disclosed because of the sensitivity surrounding the project.
Immersion DUV lithography machines play a critical role in semiconductor manufacturing. They project intricate circuit patterns onto silicon wafers, enabling the production of advanced chips. Since export restrictions have prevented Chinese companies from obtaining extreme ultraviolet (EUV) lithography systems, immersion DUV machines have become the most advanced lithography technology currently available to the country’s chipmakers.
Consequently, domestic production represents a notable milestone for China’s semiconductor industry, even though further development remains necessary before large-scale deployment.
Performance Still Trails Established Systems
Despite the manufacturing breakthrough, the report indicated that the Chinese-built machines still require additional testing before they are ready for mass production. Current systems continue to lag behind established competitors in both performance and reliability.
As a result, ASML retains a technological advantage in the market for now. Although the new equipment could eventually emerge as an alternative within China, significant improvements will be required before it can compete directly with leading international products.
Production volumes will also remain modest in the near term. Approximately five immersion DUV machines are expected to be produced this year, while output is projected to increase to around 20 units in 2027.
Strategic Importance for China’s Chip Industry
The availability of domestically produced immersion DUV machines could provide Chinese chipmakers with an additional source of essential manufacturing equipment. This becomes increasingly significant as the United States considers tighter restrictions on exports of foreign lithography tools and related servicing for customers in China.
At the same time, China continues work on developing its own extreme ultraviolet lithography technology. However, that effort remains at the prototype stage and has not yet reached commercial production.
For now, immersion DUV systems represent the highest-end lithography equipment available to Chinese semiconductor manufacturers under existing export controls. While domestic production is still limited, the development signals continued efforts to build greater self-reliance in critical semiconductor manufacturing technologies.
With inputs from Reuters