A state-backed Shanghai firm, Shanghai Aishengna Electronic Technology Group, has begun mass production of domestic immersion deep ultraviolet (DUV) lithography machines, according to reporting from The Information and Reuters. The company consolidated DUV engineering teams from multiple Chinese entities including Huawei-affiliated startup Shanghai Yuliangsheng Technology. The first units are slated for delivery this year to SMIC, Hua Hong Semiconductor, and CXMT (ChangXin Memory Technologies), with production targets of ~5 machines in 2026 and ~20 in 2027.
DUV lithography prints 28nm features in a single pass and reaches 7nm through multi-patterning—a more expensive and yield-constrained approach than EUV but one China's fabs have been forced to adopt under export controls. ASML dominates the global immersion DUV market with 98.7% share and plans to ship 130 units in 2026. China's domestic machines trail significantly on performance and build reliability; industry analysts estimate that qualifying them for production wafers could take months and yield rates will remain well below ASML's standards.
For stakeholders: China's DUV push does not disrupt ASML's near-term business, but it signals a strategic shift. If China can achieve at-scale production and acceptable yields—a multi-year challenge—it reduces Western leverage on chip export controls. The EUV prototype effort, meanwhile, remains years away from commercial production. The real risk isn't 2026–27 machine deliveries, but whether China can build ecosystem lock-in and eventually move customers off ASML despite performance gaps.