China Moves to Mass Production of Homegrown DUV Lithography Tools
SMIC's testing of Yuliangsheng's immersion system marks a turning point in Beijing's push for semiconductor self-sufficiency despite Western export controls.
China has crossed a critical threshold in its quest for semiconductor independence, moving from testing to limited mass production of domestically manufactured deep ultraviolet (DUV) immersion lithography machines as of July 2026.
From Testing to Production
SMIC, China's largest chipmaker, began testing the Yuliangsheng DUV immersion lithography machine in September 2025. Within a year, the effort progressed to production mode, with plans to manufacture approximately five units in 2026 and scale to 20 units in 2027, according to Bloomberg and Tom's Hardware.
Shanghai Yuliangsheng Technology Co. developed the machine—a state-backed startup with documented ties to Huawei and SiCarrier, which holds an equity stake. Yuliangsheng is one of three major Chinese lithography firms pursuing this technology, alongside SiCarrier and SMEE/AMIES, with development teams assembled across multiple Chinese companies.
Technical Capabilities
The Yuliangsheng immersion DUV system is reportedly comparable to ASML's Twinscan NXT:1950i from 2008, designed for 32nm-class processes in single exposure. The tool targets 28nm-class fabrication technologies, though industry analysts note it could potentially reach 7nm or 5nm nodes through multipatterning—a process that increases complexity and cost but remains viable for certain chip categories.
Exact specifications including throughput, overlay precision, and reliability remain undisclosed. Sources indicate some critical components are still imported, particularly from Japan, suggesting the supply chain is not yet fully domestic.
Strategic Implications
The milestone carries outsized geopolitical significance. For years, ASML maintained a near-monopoly on high-end lithography equipment, while U.S. and Dutch export restrictions severely limited China's access to advanced DUV and EUV tools. Washington added Yuliangsheng to the U.S. Entity List in late 2024, attempting to constrain the company's access to foreign technology and markets.
If China successfully scales homegrown DUV production, it breaks the leverage that ASML and Western regulators hold over its chip industry. While the current tools lag generations behind ASML's latest offerings, domestic 28nm production ensures China can maintain manufacturing of critical automotive, industrial, and legacy consumer electronics chips without foreign permission.
The Road Ahead
The core narrative is confirmed by multiple independent sources including the Financial Times, TrendForce, and The Information. What remains uncertain is whether China can achieve full supply-chain sovereignty and whether the tools will prove reliable enough for high-volume manufacturing.
For now, the message from Beijing is clear: export controls accelerated rather than halted China's lithography ambitions. The five units planned for 2026 may seem modest against ASML's output, but they represent proof of concept for a strategy years in the making.