China begins mass production of domestic immersion DUV lithography tools, source says

China has begun mass producing domestically developed immersion deep-ultraviolet (DUV) lithography machines, a person familiar with the matter told Reuters, in a step aimed at reducing reliance on foreign chipmaking equipment. Shanghai Aishengna Electronic Technology Group is leading the effort after incorporating teams from Chinese lithography firms, the source said. Reuters reported it was first to identify the company; The Information had earlier reported that an unidentified Shanghai state-backed firm had begun manufacturing and planned to produce about five this year and roughly 20 in 2027. The source said Aishengna's DUV machine still requires further testing and remains far from matching competing models from Dutch supplier ASML. DUV tools are used broadly in chip production and can support more advanced nodes through multipatterning. The Information said the Chinese-made DUV machines are expected to be delivered this year to SMIC, Hua Hong Semiconductor, and memory maker ChangXin Memory Technologies, citing people familiar with the matter. China is barred by the United States from buying ASML's most advanced extreme-ultraviolet systems, and Dutch export controls have restricted access to some advanced DUV machines. Aishengna was established in August 2023 with registered capital of 7 billion yuan, backed by Shanghai Electric Holding and a Shanghai International Trust subsidiary, according to corporate records cited by Reuters. ASML shares fell after the earlier report; ASML, SMIC, Hua Hong, CXMT, and Aishengna did not immediately provide comment as described in the Reuters account.