China begins mass production of homegrown immersion DUV lithography machines, first deliveries expected this year

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 memory maker CXMT. The manufacturer, reportedly pulling teams from several Chinese firms including Shanghai Yuliangsheng Technology, aims to produce about five machines in 2026 and roughly 20 in 2027. Most components are domestic, though some critical parts still come from Japan, and local supplier delays have held back output. 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 around 20% of net sales this year, down from 33% in 2025. Independent analysis projects commercial-scale Chinese immersion DUV in the mid-2030s, with ASML holding 98.7% of the immersion market. Qualifying the new machines for production lines could take many months, and they trail ASML's tools on performance and build quality.