Chinese Firm Starts Making 5 DUV Lithography Tools, Pressuring ASML as Yield Doubts Limit Threat
Updated
Updated · CNBC · Jul 28
Chinese Firm Starts Making 5 DUV Lithography Tools, Pressuring ASML as Yield Doubts Limit Threat
3 articles · Updated · CNBC · Jul 28
Summary
A Chinese company has begun manufacturing immersion DUV lithography machines, with first deliveries expected this year to major domestic chipmakers including SMIC and CXMT.
The initial scale remains small—about five units in 2026 and 20 in 2027—versus ASML's planned capacity of roughly 130 immersion DUV machines this year, rising another 30% in 2027.
Analysts said the bigger test is yield and reliability, arguing a working tool is not enough unless Chinese machines approach ASML's chip output and can perform consistently across fabs.
ASML shares fell 1.8% Tuesday after dropping as much as 8% Monday, though analysts said any China-made DUV tools would mostly replace sales already constrained by export controls.
The report highlights China's push to localize chip equipment, but analysts said cracking DUV does not mean it can match ASML in EUV, a technology that took about $10 billion and two decades to commercialize.
Could China's new DUV machine secretly match ASML's yield, or is it just a costly prototype masking a desperate technological struggle?
With SMIC testing homegrown lithography since 2025, will this unexpected manufacturing milestone permanently shatter the effectiveness of international export controls?