China is making a concerted push to develop its own advanced chipmaking equipment, with Semiconductor Manufacturing International Corporation (SMIC) now trialing the country’s first domestically produced deep-ultraviolet (DUV) lithography machine. The system, built by Shanghai start-up Yuliangsheng, could mark a breakthrough in China’s effort to sidestep U.S. export controls, reduce dependence on foreign suppliers, and scale up production of artificial intelligence processors, reports Financial Times.
For years, Chinese chipmakers have relied on Dutch company ASML’s DUV machines, many purchased before export bans tightened. Extreme ultraviolet (EUV) lithography, the cutting-edge technology needed for chips at 2 nm and below, remains entirely out of reach due to restrictions. Shanghai Micro Electronics Equipment produces DUV machines too, but these are less advanced.
The Yuliangsheng tool uses immersion lithography similar to ASML’s approach, with most components made domestically, though some are still imported. Analysts say the company is working to localize all parts. Early SMIC trials are showing promise, but industry experts caution that stabilizing performance and yields for volume production typically takes a year or more. At present, SMIC is using the domestic DUV machine for 28 nm processes combined with multi-patterning to make 7 nm chips, with the potential to push to 5 nm at low yields. Taiwan’s TSMC, by contrast, is preparing to mass produce 2 nm chips using ASML’s EUV tools.
Yuliangsheng’s shareholder, Shenzhen-based SiCarrier, has also launched efforts to develop EUV machines under a project code-named “Mount Everest.” These remain in early stages. SiCarrier has showcased advanced equipment lines branded after China’s mountains, signaling ambitions to compete with global suppliers like Tokyo Electron and Applied Materials.
China’s chipmakers aim to triple output by 2026, mostly using previously acquired ASML machines. Domestic tools could enter broader production by 2027, but analysts stress that matching ASML’s capabilities will take years of refinement.