China Begins Limited Production of Domestic Immersion DUV Lithography Machines
A Shanghai-based manufacturer plans initial deliveries to SMIC, Hua Hong, and CXMT as Beijing pushes for semiconductor autonomy amid Western export restrictions.
China has begun limited mass production of domestic immersion Deep Ultraviolet (DUV) lithography machines, a significant step toward semiconductor self-sufficiency as Western export controls tighten.
First Deliveries Expected This Year
The first units are slated for delivery to major Chinese chipmakers including SMIC, Hua Hong, and CXMT, according to reporting from The Information and Bloomberg on July 27, 2026, corroborated by Tom's Hardware, TechPowerUp, and Odaily.
An unnamed Shanghai-based state-backed company, reported as Shanghai Yuliangsheng Technology, plans to produce approximately 5 units in 2026 and expand to 20 units in 2027. Yuliangsheng and Shanghai Micro Electronics Equipment (SMEE) are separate entities: while SMEE's SSA800-10W system has faced repeated delays since 2023, Yuliangsheng is the company currently undergoing testing at SMIC facilities.
Domestic Supply Chain, With Caveats
The machines rely on some key components imported from Japan, though most are sourced domestically. This hybrid supply chain reflects the reality of China's semiconductor ambitions: meaningful progress toward autonomy, but not complete independence from global suppliers.
Production scale remains significantly smaller than established players. ASML's 2025 annual report states 279 DUV systems shipped total, underscoring the gap between China's emerging domestic pipeline and established industry capacity. The exact production timeline carries uncertainty, with some sources indicating qualification may extend into 2027-2029 rather than 2026 deliveries.
Why This Matters
Immersion DUV represents the most advanced lithography technology currently accessible to China after the United States and Netherlands blocked exports of Extreme Ultraviolet (EUV) systems, required for the most cutting-edge chips at 7nm and below.
For years, China struggled to produce lithography machines capable of advanced nodes, with SMEE previously limited to 90nm-class systems. If China can successfully scale production of immersion DUV machines, it mitigates the risk of total production halts caused by Western sanctions.
While current volume remains modest, the development establishes a domestic pipeline for critical chokepoint technology needed to maintain and advance China's semiconductor industry. The move represents a strategic shift toward chip autonomy, reducing reliance on foreign technology amid tightening geopolitical restrictions.
The success of this initiative will depend on whether Yuliangsheng can meet delivery timelines and achieve the yields necessary for commercial chip production at scale.