Key facts
- China has begun mass producing domestically developed immersion deep-ultraviolet (DUV) lithography machines.
- Shanghai Aishengna Electronic Technology Group is leading the production effort.
- The domestically produced DUV machines are expected to be delivered to leading Chinese chipmakers including SMIC, Hua Hong Semiconductor, and ChangXin Memory Technologies this year.
- These machines lag behind ASML's in performance and reliability but offer an alternative source of equipment.
- China is also developing its own EUV machine, currently in the prototype phase.
China has begun mass producing domestically developed immersion deep-ultraviolet (DUV) lithography machines, a crucial technology for advanced chipmaking, according to a person familiar with the matter. This development, led by the state-owned Shanghai Aishengna Electronic Technology Group, marks a significant step in Beijing's push for semiconductor self-sufficiency and could offer Chinese chipmakers an alternative to foreign suppliers like Dutch firm ASML.
The domestically produced DUV machines are expected to be delivered this year to leading Chinese chipmakers including Semiconductor Manufacturing International Corp (SMIC), Hua Hong Semiconductor, and ChangXin Memory Technologies (CXMT). While this breakthrough aims to reduce reliance on foreign technologies, the Chinese-made machines are understood to lag behind ASML's in performance and reliability, requiring further testing before widespread deployment.
Aishengna, established in August 2023, incorporated teams from top Chinese lithography startups, including Yuliangsheng and Shanghai Micro Electronics Equipment (SMEE). The company does not have a website and has disclosed no public information about its operations. China has faced restrictions from the U.S. on advanced extreme-ultraviolet (EUV) systems and from Dutch export controls on some DUV machines, making domestic production a strategic priority.
ASML, which dominates the lithography machine market, saw its shares fall more than 8% on Monday following initial reports of China's progress. The Dutch firm, along with SMIC, Hua Hong, and CXMT, did not immediately respond to requests for comment.