Key facts
- China has started manufacturing its own immersion deep ultraviolet (DUV) lithography machines.
- These machines are crucial for chip production and were previously dominated by Dutch firm ASML.
- Leading Chinese chipmakers like SMIC and Hua Hong Semiconductor are expected to receive these tools this year.
- The domestic DUV machines lag ASML's in performance and reliability but offer an alternative source of equipment.
- China is also working on a domestic extreme ultraviolet (EUV) lithography machine, currently in prototype stage.
China has begun manufacturing its own immersion deep ultraviolet (DUV) lithography machines, a critical piece of equipment for semiconductor production, according to a report by The Information. This development marks a significant step for China's domestic chipmaking capabilities, as it seeks alternatives to foreign suppliers like ASML, the dominant Dutch company in this sector.
The domestically produced DUV machines are expected to be delivered to major Chinese chipmakers, including Semiconductor Manufacturing International Corp (SMIC), Hua Hong Semiconductor, and ChangXin Memory Technologies, within the current year. The report cited individuals familiar with the matter, who noted that the state-backed manufacturer behind these tools has not been identified due to the sensitivity of the information.
While this breakthrough could eventually pose a challenge to ASML's market dominance in China, the report indicates that the Chinese systems currently lag behind in performance and reliability. Further testing is required before mass production can commence, suggesting that ASML's advantages remain intact for the time being. Production is anticipated to be limited initially, with approximately five DUV machines slated for delivery this year and around 20 by 2027.
Immersion DUV machines are the most advanced lithography tools accessible to Chinese chipmakers, particularly after restrictions cut off their access to extreme ultraviolet (EUV) lithography systems. China is also reportedly developing its own EUV machine, though it is still in the prototype phase. The emergence of domestic DUV technology could provide Chinese chipmakers with a crucial alternative source of essential equipment, especially as the United States considers implementing tighter restrictions on foreign lithography tool exports and servicing within China.