SMIC, Hua Hong, and ChangXin Are First Recipients as China Begins Mass Production of DUV Lithography Systems.

China Commences Volume Manufacturing of DUV Lithography Equipment

According to ITC.ua — Техно: A Shanghai-based state-owned enterprise has initiated large-scale production of DUV immersion lithography tools. The initial units are destined for domestic chipmaking giants SMIC, Hua Hong Semiconductor, and ChangXin Memory Technologies. These firms are currently prohibited from collaborating with Netherlands-based ASML, the global leader in immersion lithography equipment, due to restrictions imposed by US House Resolution 8170 as part of the MATCH Act, approved on April 22, 2023. The ban also covers Huawei and YMTC. Production targets include five units in 2023 and approximately 20 in 2024.

Ramifications for the Semiconductor Industry

ASML commands 98.7% of the immersion lithography market and expects to ship around 130 immersion systems in 2023. China contributed roughly 20% of ASML's net profit that same year. Immersion DUV technology enables the printing of 28nm-class features in a single exposure. Commercial adoption of immersion UV lithography within China is projected to occur around the mid-2030s. This milestone could significantly reshape the semiconductor landscape by giving Chinese manufacturers access to previously ASML-exclusive technology, despite ongoing international sanctions. However, China's long-term reliance on foreign-developed components and know-how remains a hurdle as it strives for self-sufficiency in chip production. The drive for self-sufficiency has been accelerated by US-led export restrictions targeting Chinese chipmakers.