Shanghai Micro Electronics Equipment (SMEE) secured a domestic contract for a step-and-scan lithography system. The system is valued at approximately $15.5 million, according to a government procurement disclosure.

This development underscores China’s efforts to build its domestic semiconductor equipment industry. The goal is to reduce reliance on foreign technology.

SMEE’s progress is notable within the Chinese market. However, ASML continues to dominate the more technologically advanced segments of the lithography market.

The SMEE system is not a direct competitor to ASML’s cutting-edge Extreme Ultraviolet (EUV) or advanced Deep Ultraviolet (DUV) machines. These ASML systems remain critical for manufacturing the most advanced nodes. No immediate market reaction was noted for ASML.