China’s leading foundry, SMIC (Semiconductor Manufacturing International Corp.), has begun testing a domestically manufactured immersion DUV lithography machine. According to the Financial Times, the tool was developed by Yuliangsheng, a Shanghai-based start-up backed by the government and staffed with many former Huawei engineers.

Industry experts estimate that it will take at least two years before this domestic DUV lithography machine can be deployed for high-volume integrated circuit production.

Yuliangsheng is a subsidiary of Si Carrier (Shenzhen), which is also investing in EUV lithography equipment development, under an ambitious project internally codenamed “Mount Everest.”

Meanwhile, Shanghai Micro Electronics Equipment (SMEE) has been developing a 193nm ArF immersion DUV system, considered capable of 28nm semiconductor manufacturing. With advanced multi-patterning techniques, SMEE’s tool could potentially support processes down to 7nm, though with complexity and yield trade-offs.

In addition to these domestic efforts, Chinese fabs such as SMIC continue to rely on ASML’s DUV lithography machines, which were purchased before U.S. export restrictions banned further sales to China.

Key takeaway:
China’s push for semiconductor equipment localization is accelerating. While domestic DUV lithography tools are still years away from mass production, the parallel efforts of Yuliangsheng, SMEE, and Si Carrier’s EUV project highlight China’s long-term goal of semiconductor self-sufficiency and reduced reliance on foreign suppliers.