China has begun mass producing domestically developed immersion deep-ultraviolet (DUV) lithography machines, a technology crucial to advanced chipmaking, a person familiar with the matter said, marking a key step forward in Beijing's drive to reduce its reliance on foreign technologies.
Shanghai Aishengna Electronic Technology Group, a little-known Chinese state-owned company, is leading the production effort after incorporating teams from top Chinese lithography startups, the source said, declining to be named due to the sensitivity of the subject.
The development represents a win for Beijing's nationwide semiconductor self-sufficiency initiative, one of President Xi Jinping's highest priorities, but will not pose an immediate commercial threat for Dutch supplier ASML.
DUV is a key chipmaking tool long dominated by ASML ASML.AS.
The Information, a tech industry news outlet, first reported on China's development of the tool on Monday, noting that an unidentified state-backed company in Shanghai had begun manufacturing the machines and planned to produce about five this year and roughly 20 in 2027. Reuters is the first to report the identity of the company.
Aishengna's DUV machine is expected to require further testing and remains far from matching the Dutch firm's competing models, the source said.
Successful deployment would, however, give Chinese chipmakers an alternative source of equipment if Western governments further restrict exports or servicing of foreign lithography tools.
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 memory-chip maker ChangXin Memory Technologies (CXMT), The Information said, citing two people familiar with the matter.
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