China starts production of home-grown immersion DUV chipmaking tools - source

China has initiated mass production of its own immersion deep-ultraviolet (DUV) lithography machines, a pivotal technology for advanced chip manufacturing. This development marks a significant stride in Beijing's ambition to decrease its dependence on foreign technologies.

“

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.

The production is spearheaded by Shanghai Aishengna Electronic Technology Group, a state-owned entity that has integrated teams from prominent Chinese lithography startups. This initiative is a key component of President Xi Jinping's national semiconductor self-sufficiency strategy.

While the domestically developed machines are not expected to immediately challenge Dutch firm ASML's market dominance, they could provide Chinese chipmakers with a crucial alternative. This is particularly relevant should Western nations impose further restrictions on the export or servicing of foreign lithography equipment.

“

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 machines are slated for delivery to major Chinese chip manufacturers like Semiconductor Manufacturing International Corp (SMIC), Hua Hong Semiconductor, and ChangXin Memory Technologies (CXMT) this year. Immersion DUV machines utilize a layer of water to enable the printing of finer circuit patterns on silicon wafers compared to conventional dry systems. They are versatile, producing a wide range of chips and capable of manufacturing more advanced semiconductors through multi-patterning techniques.

“

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.

Aishengna, established in August 2023 with substantial state backing, remains largely unknown publicly. The company lacks a website and has made no public disclosures. Although the Chinese-made DUV machines require further testing and are not yet on par with ASML's advanced models, their successful deployment could bolster China's domestic semiconductor industry.

“

Successful deployment would, however, give Chinese chipmakers an alternative source of equipment if Western governments further restrict exports or servicing of foreign lithography tools.