China has successfully achieved domestic production of deep ultraviolet (DUV) lithography equipment, a key component in semiconductor manufacturing. Following the successful IPO of CXMT, China's largest DRAM manufacturer, on July 27, positive developments continue to emerge in the Chinese semiconductor industry.
A Chinese company has begun producing its own immersion DUV equipment and plans to deliver five units to customers this year, according to a report by the U.S. tech publication The Information on July 28. The production will supply major Chinese semiconductor firms, including SMIC, Huahong Semiconductor, and CXMT. This marks the first time a Chinese company has manufactured immersion DUV equipment. The Information also reported that 20 units are expected to be shipped next year.
The U.S. has prohibited the export of advanced extreme ultraviolet (EUV) lithography machines to China since 2019, and since 2023, it has also banned the export of immersion DUV equipment.
Immersion DUV technology can produce semiconductors using a 28-nanometer (nm) process in a single exposure. With multiple patterning techniques, it can potentially cover 7nm processes, although this method has lower yields and higher production costs.
Immersion DUV technology was first introduced to the market by Dutch lithography company ASML in 2006. The equipment being produced by the Chinese company is expected to have performance similar to ASML's 2008 version of immersion DUV, indicating a technological gap of approximately 18 years between ASML and Chinese manufacturers.
However, the localization of DUV technology is seen as a significant achievement, indicating that China has completed the localization of its 28nm semiconductor process. There are expectations that this will accelerate China's development of EUV lithography technology.
The name of the Chinese DUV equipment manufacturer has not been disclosed. However, there is speculation that it may be Yuliangsheng, a DUV development company affiliated with Huawei. Last September, the Financial Times reported that SMIC was testing immersion DUV equipment produced by Yuliangsheng.
Yuliangsheng is 50% owned by a venture capital firm under the Shanghai municipal government, while the other 50% is held by the semiconductor equipment company Sycaryer, which is fully owned by a venture capital firm under the Shenzhen municipal government. Given that Sycaryer's core team consists of members from Huawei's precision equipment development team, the Chinese industry considers Sycaryer to be affiliated with Huawei.
Meanwhile, CXMT, which went public on July 27, saw its stock price surge by 476% on its first day, making it the top company by market capitalization on the Chinese stock market. Analysts and media in China's securities industry view CXMT's IPO as a symbolic event for the Chinese semiconductor industry, reflecting positive investor sentiment regarding the growth of the sector, the localization of China's AI supply chain, and technological independence.
* This article has been translated by AI.
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