• China plans to produce five deep-ultraviolet (DUV) lithography machines this year, aiming for 20 by 2027, according to people familiar with the matter.
  • The initiative is part of Beijing's push for semiconductor self-sufficiency, reducing reliance on foreign suppliers amid export controls.
  • If successful, the milestone would mark a significant step in domestic wafer-fab equipment capability, though high-volume production for advanced nodes remains years away.

Domestic Lithography Push Gains Momentum

China is accelerating efforts to build its own DUV lithography machines, targeting initial output of five units this year and ramping to 20 by 2027, according to a report by The Information. The move aligns with Beijing's broader strategy to achieve semiconductor self-sufficiency and counter export restrictions imposed by the US and its allies.

The machines, developed by state-backed domestic toolmakers, are intended for use at mature process nodes, where Chinese chipmakers like SMIC currently rely on imported equipment. Sources familiar with the matter said the timeline is ambitious but feasible, given significant government funding and collaboration between research institutes and local suppliers.

"This is a critical step in reducing technological dependence," said an industry executive close to the program, who spoke on condition of anonymity due to sensitivity of the matter. "But going from pilot production to reliable high-volume output will require years of refinement."

Challenges and Context

Lithography systems are among the most complex semiconductor tools, with ASML holding a near-monopoly on advanced DUV and EUV machines. China has struggled to develop competitive alternatives, with earlier attempts facing delays and performance issues. However, recent progress in optics and source technology has boosted confidence.

The target of five machines this year represents a pilot phase, with plans to scale to 20 by 2027 as production processes mature. Even at that level, output would be a fraction of ASML's annual DUV shipments, which exceeded 400 units in 2023. Analysts caution that yield and reliability remain key unknowns.

Government officials have not publicly commented on the report. Multiple attempts to reach the Ministry of Industry and Information Technology for confirmation were unsuccessful.

Broader Implications

The development comes as China's semiconductor equipment market expands, driven by domestic demand and policy support. Foreign suppliers, including ASML, face tightened export controls on advanced tools, accelerating Beijing's push for indigenous alternatives.

Industry experts say DUV capability is foundational, but the real prize remains EUV lithography, which is essential for cutting-edge chips below 7nm. China has yet to demonstrate a working EUV prototype, and progress on high-NA EUV is expected to take at least a decade.

"This is a necessary first step, but it doesn't change the global balance overnight," said an analyst at a Beijing-based consultancy. "The focus should be on whether these machines can actually run at commercial fabs with acceptable efficiency."

The news has drawn attention from competitors and policymakers globally, who are monitoring China's self-reliance push closely.

Clarification: An earlier version of this article incorrectly stated the machine type as EUV; it has been corrected to DUV.