[News] China’s SMEE Reportedly Wins RMB 110M Lithography Tool Contract Amid Domestic Push

China is stepping up investments in lithography equipment, turning to homegrown tools as it seeks greater technological independence amid U.S. export restrictions. According to Commercial Times, citing 21jingji, China’s Ministry of Science and Technology announced on the 25th that it will invest roughly RMB 110 million to award a contract for a step-and-scan lithography system produced by domestic equipment maker SMEE (Shanghai Micro Electronics Equipment).

The report, citing industry sources, adds that SMEE is affiliated with Shanghai Electric Group and is regarded as a core player in China’s semiconductor equipment sector, particularly in the research and manufacturing of advanced lithography tools. In May this year, SMEE claimed that its 90nm ArF lithography system had entered mass production.

Potential Details of the Awarded Lithography Tool

As noted by 21jingji, the product carries the model number SSC800/10, with “SSC” being a lithography tool designation disclosed publicly for the first time. The “SS” is widely believed to stand for step-and-scan, referring to the mechanical operating scheme used in today’s mainstream high-precision semiconductor lithography systems, including both extreme ultraviolet (EUV) and deep ultraviolet (DUV) tools.

Meanwhile, according to ICsmart, although some sources have claimed that the system could support a 28nm process, verification found that the awarded machine is in fact a KrF lithography system using a 248nm light source, with a resolution of 110nm.

MyDrivers further notes that the SSC800 features an overlay accuracy of 15nm and is believed to be a dry lithography system, rather than a higher-end immersion-based product.

Why the Award Carries Strategic Significance

However, the tender details highlight the importance China places on this award. As 21jingji notes, the contract was granted through a single-source procurement mechanism, a method typically permitted only when irreplaceable patents or proprietary technologies are involved, or when specific public-service requirements necessitate sourcing from a single supplier. The report adds that the relatively large winning bid amount—well above the millions or low tens of millions of yuan commonly seen in lithography-related tenders—along with the use of a confidential project code (zycgr22011903), underscores the representative and strategic nature of the award.

Beyond this contract, China has also continued to ramp up investment in domestic lithography development. According to Reuters, sources say China has assembled a prototype EUV machine using components sourced from older ASML systems, and the Chinese government aims to produce functional chips using the prototype by 2028, though 2030 is viewed as a more realistic target.

Read more

• [News] China Reportedly Builds EUV Prototype Using Older ASML Components, Eyes 2028 Chipmaking
• [News] Decoding China’s Lithography Push to Challenge ASML: From SiCarrier to Alternative EUV Paths

(Photo credit: SMEE)