- China has begun mass producing domestically developed immersion deep-ultraviolet (DUV) lithography machines, marking a key step forward in Beijing's drive to reduce its reliance on foreign technologies.
- The production effort is being led by Shanghai Aishengna Electronic Technology Group, which has incorporated teams from top Chinese lithography startups.
- Aishengna plans to produce about five DUV machines this year and roughly 20 in 2027.
- The Chinese-made 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).
- China accounted for 14% of ASML's net system sales of 6.6 billion euros ($7.5 billion).
- ASML needed "roughly two decades" and around $10 billion of research and development to make EUV commercially viable.
- China has been barred by the U.S. from buying ASML's most advanced extreme-ultraviolet (EUV) lithography systems.
- This development represents a win for Beijing's nationwide semiconductor self-sufficiency initiative, one of President Xi Jinping's highest priorities.
- The DUV tools that China is producing "displace revenue ASML already lost to export controls."
ASML Holding NV shares fell following reports that China has begun mass production of domestically developed immersion deep-ultraviolet (DUV) lithography machines, a crucial technology for advanced chipmaking. This marks a significant step in China's efforts to reduce reliance on foreign technologies.1267810
The Chinese firm, Shanghai Aishengna Electronic Technology Group, aims to produce five DUV units this year and around 20 by 2027. This initiative aligns with President Xi Jinping's semiconductor self-sufficiency goals, although analysts believe ASML is unlikely to face immediate threats due to uncertainties surrounding the technology's maturity.349
ASML, which has invested roughly two decades and $10 billion in research and development to make EUV commercially viable, plans to produce around 130 DUV immersion machines by 2026 and increase capacity by 30% in 2027. Despite China accounting for 14% of ASML's net system sales of €6.6 billion ($7.5 billion), the DUV tools produced by China are seen as displacing revenue ASML has already lost due to export controls.
The Chinese-made DUV machines are expected to be delivered to leading local chipmakers, including Semiconductor Manufacturing International Corp (SMIC) and ChangXin Memory Technologies (CXMT), as part of China's broader strategy to enhance its semiconductor capabilities.5
“China accounted for 14% of ASML's net system sales of €6.6 billion ($7.5 billion), highlighting the significance of the Chinese market for ASML. Analysts noted that while ASML is unlikely to be heavily impacted, many questions remain about the viability of China's technology.”
CNBC
