China begins developing key chipmaking machines at home
What's the story
China has started manufacturing its own immersion deep ultraviolet (DUV) lithography machines, a critical tool in chip production. The move comes as a major challenge to Dutch supplier ASML, which has long dominated this market. The first of these domestically developed machines are expected to be delivered later this year to top Chinese chipmakers such as Semiconductor Manufacturing International Corp (SMIC), Hua Hong Semiconductor, and ChangXin Memory Technologies (CXMT).
Performance comparison
Domestic machines inferior to ASML's
While the development of domestic DUV machines could pose a threat to ASML in China, they are said to be inferior in performance and reliability.
The system needs further testing before it can go into mass production, keeping ASML's edge intact for now.
Production will be limited at first, with about five DUV machines this year and some 20 by 2027.
Technological advancement
Immersion DUV machines most advanced lithography tech for Chinese chipmakers
Immersion DUV machines, which print circuit patterns onto silicon wafers, are the most advanced lithography technology available to Chinese chipmakers.
This is especially true after export restrictions cut off access to extreme ultraviolet (EUV) systems.
China is also working on a domestic EUV machine but it remains at the prototype stage.
If successful, these technologies could provide an alternative source of critical manufacturing equipment for Chinese chipmakers as the US considers tighter export restrictions on foreign lithography tools in China.
Strategic shift
China shifts strategy to accelerate domestic semiconductor development
China has been working on lithography technology since 2002.
However, after the US imposed export controls on advanced chipmaking equipment in 2022, Beijing changed its approach from a state-led research model to a more inclusive strategy that involves government support and private-sector participation.
This is aimed at speeding up domestic semiconductor development.