China's workaround: Upgrading old machines to make new AI chips
Chinese chipmakers are getting creative—upgrading older ASML DUV machines so they can still build advanced AI chips.
By adding new parts like wafer stages and alignment sensors, these retrofits help produce the kinds of chips used in everything from AI accelerators to smartphones.
Why does this matter now?
With strict export controls from the US and its allies making it tough for China to buy cutting-edge chip-making tools, these upgrades let companies like SMIC and Huawei keep up.
Even though this method is pricier and can lead to more defects than newer tech, it helps boost yields using equipment they already own.
What's the bigger picture?
China now makes up a big chunk of ASML's revenue thanks to stockpiled machines bought before restrictions hit.
These clever workarounds are keeping China in the AI chip race—even as global tech rules get tighter.