Engineers work with semiconductor manufacturing equipment as China advances domestic production of immersion DUV lithography machines for chip manufacturing.

China Begins Production of Home-Grown DUV Chipmaking Machines

SINGAPORE — July 28, 2026

China has started mass production of domestically developed immersion deep-ultraviolet (DUV) lithography machines, marking an important step in its effort to reduce reliance on foreign semiconductor technology, according to a person familiar with the project.

The production effort is reportedly being led by Shanghai Aishengna Electronic Technology Group, a state-owned company established in 2023. The move supports Beijing's long-term strategy to strengthen its domestic semiconductor industry as access to advanced foreign chipmaking equipment remains restricted.

The source, who requested anonymity because of the sensitivity of the project, said Aishengna has brought together engineering teams from Chinese lithography companies, including Shanghai Micro Electronics Equipment (SMEE) and Yuliangsheng, to develop the new machines.

Immersion DUV lithography systems are essential tools used to manufacture a wide range of semiconductor chips. By placing a thin layer of water between the lens and the silicon wafer during production, the technology enables manufacturers to create smaller and more advanced chip circuits than conventional dry lithography systems.

The new Chinese-made machines are expected to undergo additional testing before reaching large-scale commercial use. Industry experts say they remain behind the technology offered by Dutch company ASML, which continues to dominate the global market for advanced lithography equipment.

However, domestic production could provide Chinese chipmakers with an alternative source of equipment if export restrictions on foreign technology become stricter or if servicing existing imported machines becomes more difficult.

Reports indicate that the first batch of the new DUV systems could be delivered this year to major Chinese semiconductor manufacturers, including Semiconductor Manufacturing International Corp (SMIC), Hua Hong Semiconductor, and ChangXin Memory Technologies (CXMT). None of the companies publicly commented on the reported deliveries.

Aishengna was established with registered capital of 7 billion yuan (about $1 billion) and is backed by two state-owned shareholders. Despite its growing role, the company has released very little public information about its operations and does not maintain a public website.

China has faced increasing restrictions on access to advanced semiconductor manufacturing technology. The United States has blocked exports of the most advanced extreme-ultraviolet (EUV) lithography systems to China, while Dutch export controls have also limited access to some advanced DUV equipment.

Even with those restrictions, China remains one of ASML's largest markets, accounting for about 16% of the company's net sales during the first half of 2026, largely through purchases of less advanced DUV systems.

Analysts said the reported production milestone is significant for China's semiconductor ambitions but is unlikely to have an immediate commercial impact on ASML. They noted that producing a limited number of machines is different from building reliable systems capable of supporting high-volume semiconductor manufacturing over long production cycles.

The reported development highlights China's continued investment in semiconductor self-sufficiency as global competition over advanced chip technology intensifies.