China starts homegrown DUV tool production

China has started manufacturing domestically developed immersion deep-ultraviolet (DUV) lithography machines, marking a new step in its efforts to build a local semiconductor equipment industry. The systems are being produced by an unnamed, state-backed company based in Shanghai, reflecting direct government support for the project. Reports state that the tools are designed for use in advanced chip fabrication processes that rely on immersion DUV technology.

Initial production volumes are limited. The reported target is about five immersion DUV systems to be produced this year, with output planned to increase to around 20 units in 2027. This indicates that, for now, the effort is at an early industrialisation stage rather than large-scale deployment.

The domestically developed immersion DUV machines are expected to be delivered this year to several of China’s leading chip manufacturers. Reported recipients include Semiconductor Manufacturing International Corp (SMIC), Hua Hong Semiconductor and ChangXin Memory Technologies (CXMT). These companies are among China’s key contract chipmakers and memory producers and are central to the country’s broader semiconductor ambitions.

Before the tools can be used in high-volume production, the systems may need months of testing within these chipmakers’ facilities. This validation period is aimed at assessing reliability, yield impact and integration into existing production lines. The staged rollout underlines that, while deliveries are planned, full operational deployment is not immediate.

Reports describe the new immersion DUV machines as relying mostly on Chinese-made components, signalling progress in localising the supply chain. However, some key parts still originate from Japan, showing that complete domestic self-sufficiency in critical subsystems has not yet been reached. The mix of local and foreign components highlights both advances and remaining dependencies in China’s equipment ecosystem.

Current assessments indicate that the Chinese immersion DUV systems trail ASML’s equipment in terms of performance and build quality. The gap means that, at this stage, the new tools are not direct one-for-one substitutes for established foreign systems. The need for extended testing before entry into production lines further illustrates that the domestic technology, while advancing, is still maturing relative to leading global offerings.