China begins producing immersion DUV lithography machines, challenging ASML dominance
China has started producing its own immersion DUV lithography machines, which are essential for making modern computer chips.
Until now, these machines were long dominated by Dutch supplier ASML, so this is a pretty big move for China.
Major local chipmakers like SMIC and Hua Hong are expected to receive these new machines this year, helping China push toward tech independence as US restrictions tighten.
China expects 5 DUVs this year
China expects to produce about five DUV machines this year and plans to ramp up to 20 by 2027; they're still not as reliable as ASML's and need more testing.
After the news broke, ASML's stock dropped 4.6%, showing investors are nervous about new competition.
While China is catching up with DUV tech, its next-generation EUV machines (needed for even more advanced chips) are still just prototypes, so full self-sufficiency isn't here yet.
It's definitely getting closer.