According to The Information (paywalled), a state-backed Shanghai company has begun mass-producing China's first homegrown immersion DUV lithography machines, with about five units expected this year for SMIC, Hua Hong, and CXMT. Roughly 20 more units are expected in 2027. Tom's Hardware reports: The Information didn't name the manufacturer, but its sources described the operation as having pulled DUV development teams from several Chinese companies, one of them the state-backed startup Shanghai Yuliangsheng Technology. SMIC has been testing a Yuliangsheng immersion tool since September 2025. Most components in the new systems are domestic, though some critical parts still come from Japan, and delays at local suppliers have held back output this year.

[...] China accounts for around 20% of ASML's net sales this year, down from 33% in 2025, driven mainly by mainstream logic demand... Independent analysis from the AI Futures Project in June put commercial-scale Chinese immersion DUV in the mid-2030s, with ASML holding 98.7% of the immersion market. Qualifying the new machines for production lines could take many months, and they trail ASML's tools on performance and build quality. China's domestic EUV effort, which Reuters first reported as a working prototype in December, remains years away.

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