China accelerates chip self-sufficiency with domestically built immersion DUV lithography tools

China has begun mass-producing domestically developed immersion DUV lithography machines led by Shanghai Aishengna Electronic Technology Group, incorporating teams from lithography startups as part of Beijing’s push for semiconductor self-sufficiency. Immersion DUV tools use water between the lens and wafer to print finer patterns and are crucial for advanced chipmaking; initial deliveries are expected to major Chinese manufacturers like SMIC, Hua Hong, and CXMT, with about five units this year and around 20 in 2027. Analysts say the move strengthens China’s options but is not an immediate threat to ASML, given ongoing testing and reliability challenges and ongoing export controls shaping the competitive landscape.