China Begins Mass Production of Domestic DUV Lithography Machines

A state-backed company in Shanghai has begun mass-producing immersion deep ultraviolet lithography machines domestically, with the first units scheduled for delivery to Chinese semiconductor manufacturers later in 2026. The development represents a significant step in China's effort to establish an independent supply chain for advanced chipmaking equipment.

What Happened

According to a report cited by Tom's Hardware, a Shanghai-based, state-backed manufacturer has moved into mass production of immersion DUV lithography machines. The first units are expected to be delivered to three of China's leading chipmakers: SMIC, Hua Hong, and CXMT. No official announcement has been made by the Chinese government or the manufacturer identifying the company by name, and the report did not disclose the production volume or the technical specifications of the machines beyond their classification as immersion DUV systems.

Immersion DUV lithography is a critical technology used to manufacture semiconductors at nodes commonly associated with mainstream logic and memory chips. The machines use a liquid medium between the lens and the wafer to achieve finer circuit patterns than conventional dry DUV systems allow.

Background

DUV lithography equipment has historically been supplied almost exclusively by ASML, the Dutch company that also manufactures extreme ultraviolet lithography machines used for the most advanced chip nodes. The United States and its allies, including the Netherlands and Japan, have imposed successive rounds of export controls targeting the transfer of advanced semiconductor equipment to China, with restrictions on ASML shipments to Chinese customers tightening significantly since 2023.

Those controls have applied most stringently to EUV machines, which ASML has not been permitted to ship to China since 2019. Restrictions on certain categories of DUV equipment, including immersion systems, have also been extended in subsequent rounds of controls. The stated aim of those controls has been to limit China's ability to manufacture chips at advanced nodes.

In response, Chinese government policy and state investment have increasingly prioritized the development of domestic alternatives across the semiconductor supply chain, including lithography equipment, materials, and electronic design automation software. SMIC, Hua Hong, and CXMT are all Chinese foundries that have continued to expand domestic capacity amid those restrictions.

What the Machines Do

Immersion DUV machines are used across a range of chip manufacturing processes. They are not used for the most advanced logic nodes, which require EUV technology, but they remain essential for producing a broad category of chips including DRAM memory, mature-node logic, and power semiconductors. CXMT, one of the named delivery recipients, is a Chinese DRAM manufacturer that has been expanding production capacity. SMIC and Hua Hong are logic foundries producing chips across a range of process nodes.

The ability to produce immersion DUV machines domestically would, if confirmed at scale and at sufficient technical performance, reduce Chinese chipmakers' dependence on foreign equipment suppliers for a class of tools that has been subject to increasing export restrictions.

What Is Not Yet Known

The report did not disclose the technical performance specifications of the domestically produced machines, including resolution capability, throughput, or overlay accuracy, metrics that determine how competitive a lithography tool is relative to established ASML systems. It also did not identify the Shanghai-based manufacturer by name, the number of machines being produced, or the timeline for broader commercial availability beyond the initial deliveries to SMIC, Hua Hong, and CXMT.

Verification of the production status and technical capabilities from independent sources or the companies involved had not been published at the time of this report.

What Happens Next

The first immersion DUV units are scheduled for delivery to SMIC, Hua Hong, and CXMT before the end of 2026, at which point the machines will be integrated into existing fab operations for evaluation and production use.