China Advances Towards Domestic Production of Key Chipmaking Equipment, Boosting AI Potential
China is making strides towards self-sufficiency in the production of advanced semiconductor manufacturing equipment, a critical step in bolstering its domestic artificial intelligence (AI) chip capabilities.Semiconductor Manufacturing International corporation (SMIC), China’s leading chip manufacturer, is currently testing a Deep Ultraviolet (DUV) lithography machine developed by shanghai-based startup Yolianggeng.
Currently, SMIC and other Chinese chipmakers rely heavily on equipment from ASML, the Dutch market leader in lithography systems. however, access to new ASML machines has been restricted by U.S. export controls. This has spurred efforts to develop indigenous alternatives. While Shanghai Micro Electronics Equipment (SMEE) also manufactures DUV machines, their advancement is less advanced.Crucially, China currently lacks access to Extreme Ultraviolet (EUV) lithography machines, essential for producing the most cutting-edge chips used by companies like NVIDIA. ASML is prohibited from selling EUV technology to China.
Sources indicate that yolianggeng’s DUV machine utilizes primarily locally sourced components, though some parts are currently imported. The company is actively working to achieve full domestic production of all components.
Initial testing by SMIC has shown promising results, but it remains uncertain whether the machine can achieve the stability and productivity required for mass chip production, and a timeline for full-scale implementation is unclear.It typically takes at least a year of refinement to optimize new lithography tools for production use. The Yolianggeng machine employs immersion technology,similar to that used in ASML’s DUV systems.
SMIC is reportedly testing a 28nm DUV machine from Yolianggeng, and has demonstrated the ability to use multiple patterning techniques to produce chips with a 7nm resolution. While the machine may be capable of producing 5nm processors, the yield and performance woudl be lower compared to those manufactured using more advanced technology.
This development comes as Taiwan Semiconductor Manufacturing Corporation (TSMC) prepares to begin mass production of 2nm chips using the latest ASML EUV equipment.EUV technology remains a important hurdle for China in its pursuit of producing chips competitive with leading-edge offerings.
Sicarrier, a company based in Churchn, is listed as a shareholder in Yolianggeng and is involved in efforts to develop EUV technology, though these efforts are still in their early stages. The accomplished development and deployment of domestically produced DUV machines represents a significant step towards reducing China’s reliance on Western technology and expanding its capacity for advanced AI chip production.
