[News] China Reportedly Mass-Produces Immersion DUV Tools; SMIC, Hua Hong, CXMT Deliveries Expected This Year

China’s progress in critical chipmaking equipment may be accelerating faster than anticipated. According to Tom’s Hardware, citing The Information, a state-backed manufacturer in Shanghai has reportedly started mass-producing immersion DUV lithography machines, with the first systems expected to be delivered to SMIC, CXMT, and Hua Hong later this year. Production is said to target around five machines in 2026 and about 20 in 2027.

Still, key components are reportedly still sourced from Japan. The report indicates that while most parts used in the new systems are domestically produced, some critical components continue to be imported from Japan. It also notes that delays among local suppliers have slowed production this year.

The report also notes that the project brought together DUV development teams from several Chinese companies, including state-backed startup Shanghai Yuliangsheng Technology. Financial Times reports that SMIC has been testing a Yuliangsheng immersion lithography system since September 2025.

Immersion DUV lithography machines, which project circuit patterns onto silicon wafers, are the most advanced lithography systems currently available to Chinese chipmakers after export restrictions cut off access to EUV lithography tools, Reuters notes. Tom’s Hardware adds that immersion DUV can produce 28nm-class features in a single exposure and achieve 7nm-class manufacturing through multipatterning, though at the cost of increased overlay complexity and lower yields.

Meanwhile, Reuters also notes that China is reportedly developing a domestic EUV lithography machine, although the project remains at the prototype stage.

China also remains a major market for ASML’s lithography systems. According to Tom’s Hardware, China is expected to account for around 20% of ASML’s net sales this year, down from 33% in 2025, with demand driven primarily by mature-node logic chip production.

ASML’s Advantage Extends Beyond the Tool

While the development could mark an important step toward reducing China’s reliance on foreign lithography equipment, its commercial impact may take time to materialize. Reuters, citing The Information, notes that the system may still trail ASML in performance and reliability and requires further validation before reaching mass production, leaving the Dutch company’s competitive edge intact for now.

According to TrendForce, ASML’s leadership in lithography extends far beyond machine specifications such as yield, throughput, and resolution. Instead, it is built on an ecosystem the company has developed over decades. As TSMC Chairman and CEO C.C. Wei said during the company’s earnings call, semiconductor manufacturing is “not like buying milk at a convenience store.” ASML delivered its first Low-NA EUV prototype systems to key customers, including TSMC, as early as 2007–2008, but it was not until 2018 that TSMC adopted the technology for mass production at the 7nm node.

TrendForce believes that for China, mass-producing lithography machines—whether DUV or EUV—is ultimately a matter of time, capital, and resource investment. The greater challenge will come after mass production: how quickly the systems can be commercialized, how cost-competitive they are, and whether the chips they enable can deliver competitive performance, power efficiency, and die area.

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

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