A key step to no longer being choked! Domestic lithography machines begin small-batch production, ASML plummets 8%

According to a report from on July 28, local time July 27, the U.S. tech business media outlet The Information reported that a domestic company has begun small-scale mass production of the first domestically made immersion deep ultraviolet (DUV) lithography machine. It is expected to deliver approximately 5 units to SMIC, Hua Hong Semiconductor, and ChangXin Memory Technologies this year, with plans to increase output to around 20 units by 2027.

Two sources familiar with the matter, who spoke on condition of anonymity, revealed that the headquarters-based company, located in Shanghai, has initiated batch production of the immersion DUV lithography machine. This type of equipment is one of the core tools widely used by major global chip manufacturers such as TSMC in production.

According to reports, to accelerate research and development progress, the company has integrated immersion DUV R&D teams from other domestic enterprises, including the government-backed chip equipment startup Shanghai Yuliangsheng Technology.

The report states that this domestically produced lithography machine primarily targets the production of 28nm mature process chips. Leveraging multi-patterning exposure techniques, it can also meet the manufacturing needs of 7nm-level chips.

If this domestic DUV lithography machine achieves stable mass production on chip manufacturing lines, it could potentially partially replace imported equipment currently dominated by the Netherlands' ASML.

As is well known, ASML is currently the largest supplier in the global lithography machine market. For a long time, the global immersion DUV lithography machine market has been dominated by the Dutch company ASML.

Following the news, ASML's stock price plummeted after the U.S. market opened, dropping over 8% at one point, with trading temporarily suspended.

The report analyzes that this development marks a significant step for China in advancing the localization of semiconductor equipment, reducing dependence on overseas lithography equipment, and mitigating the impact of U.S. and Dutch export controls.