China begins mass production of domestic immersion DUV lithography machines, first deliveries expected in 2025

Published Jul 27, 04:51 PM UTC

A state-backed Shanghai company has begun mass-producing immersion deep ultraviolet (DUV) lithography machines, with first units to be delivered this year to SMIC, Hua Hong Semiconductor, and ChangXin Memory Technologies (CXMT). Output targets are around five machines in 2026 and roughly 20 in 2027. The manufacturer, reportedly drawing teams from several Chinese firms including Shanghai Yuliangsheng Technology, uses mostly domestic components but relies on some Japanese parts. The development comes as the U.S. MATCH Act, moving through Congress, would statutorily cut off ASML sales and servicing to these Chinese firms. ASML expects to ship about 130 immersion systems in 2026, with China accounting for 20% of its net sales in 2025. Independent analysis suggests commercial-scale Chinese immersion DUV will not be achieved until the mid-2030s, and the new machines trail ASML's tools in performance and build quality.