China’s DUV Chip Making Machine Is Far Off From Being A Threat To ASML, Says Report

Jul 28, 2026 at 09:52am EDT
Technicians in cleanroom suits working on a large semiconductor manufacturing machine.

China's native deep ultraviolet (DUV) chip manufacturing machine, which made waves in the media yesterday, is unlikely to pose a threat to Dutch chip manufacturer ASML, says a report from Reuters. The company behind the breakthrough is the Chinese state-owned Shanghai Aishengna Electronic Technology Group, which has ties to Shanghai Micro Electronics Equipment (SMEE) and the Shanghai Electric Group. SMEE is spearheading China's efforts to develop domestic lithography equipment as part of a bid to overcome Western sanctions.

China's DUV Lithography Machine Requires Further Testing, Says Report

While Western sanctions against China cover the latest extreme ultraviolet (EUV) lithography systems, there are no sanctions levied on the older deep ultraviolet (DUV) scanners. ASML is the primary global manufacturer and supplier of DUV machines, with some estimates suggesting that its control of the advanced DUV equipment market is as absolute as its control of the EUV market. DUV machines, as opposed to EUV machines, rely on longer wavelengths of light to print chip circuits as well as lenses and lasers.

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As opposed to this, manufacturing EUV scanners is a significantly more complex process since the smaller wavelengths of ultraviolet light involved mean that equipment manufacturers have to create a vacuum environment inside the machine.

Reports from China have indicated that Beijing expects EUV machines to enter production in 2030, with Huawei and others reportedly playing a key role in spearheading their development.

Now, according to Reuters, the firm responsible for manufacturing China's DUV lithography machine is the Shanghai Aishengna Electronic Technology Group. The machine is an immersion scanner that relies on water to print the circuits, and despite the achievement, it is unlikely to pose a competitive threat to the Dutch chip manufacturing giant ASML.

China, courtesy of its reliance on ASML, remains one of ASML's largest customers. Latest data from the Dutch firm shows that China accounted for 16% of ASML's revenue, or €2.6 billion as of 2026's first half. This made China ASML's third-largest market, following Taiwan and South Korea.

DUV machines are typically used to manufacture chips that are traditionally marketed as being built through the 7-nanometer or larger nodes. While making more advanced chips with the older machines is possible, it typically requires a process called multi-patterning, which can lead to more defects and lower yields. These constraints reduce a machine's throughput and increase the costs of producing a silicon wafer.

About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.

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