State-backed Shanghai Aishengna Electronic Technology Group has started mass-producing domestic immersion deep ultraviolet (DUV) lithography machines. The company will deliver the first units this year to major chipmakers including SMIC, Hua Hong Semiconductor, and ChangXin Memory Technologies. While designed for 28-nanometer chips, the tools can potentially manufacture 7-nanometer components using multi-patterning techniques.
The development marks a significant step in Beijing’s strategy to overcome U.S.-led export restrictions on advanced chipmaking hardware. ASML shares dropped as much as 10% following the news of potential domestic competition. Production volumes remain low, with an estimated five units projected for 2026 as the technology still trails ASML’s current offerings.