Key facts
- Chinese semiconductor plants acquired hundreds of immersion lithography machines in recent years.
- An estimated 343 immersion DUV lithography systems were acquired by Chinese-owned fabs by early 2026.
- The U.S. is preparing to pressure the Netherlands for a near-total ban on ASML's DUV equipment sales to China.
- China is accelerating domestic production of DUV lithography machines, with initial deliveries expected this year.
- China imported 95 DUV systems in 2025, exceeding domestic production targets.
Former US officials are urging Washington and its allies to implement a near-total ban on ASML's lithography equipment sales to China, citing reports of significant stockpiling of DUV immersion systems by Chinese semiconductor plants. The Centre for Technology & Statecraft (CTS) estimated that Chinese-owned fabs had acquired approximately 343 such systems by early 2026.
The U.S. is reportedly preparing to pressure the Netherlands to enforce a comprehensive ban on ASML's sales and servicing of chipmaking equipment to China, potentially through the proposed Multilateral Alignment of Technology Controls on Hardware (MATCH) Act. This legislation aims to align export controls among U.S. allies, including Japan and the Netherlands, and could extend restrictions to older ASML equipment.
This potential tightening of restrictions comes as China actively pursues self-sufficiency in chip manufacturing. State-backed Shanghai Aishengna Electronic Technology Group is leading the development of domestic immersion DUV lithography machines, with plans to produce five systems in 2026 and twenty in 2027 for major Chinese chipmakers like SMIC, Hua Hong Semiconductor, and CXMT. However, China's domestic production capacity remains significantly lower than its import demand, as evidenced by the 95 DUV systems imported in 2025 alone.