China has reportedly developed its own EUV lithography machine for advanced semiconductor production, potentially boosting its tech rivalry with the US. The machine, reverse-engineered from ASML technology, could give China geopolitical leverage. While not yet producing chips, China aims to make advanced integrated circuits by 2028 or more realistically by 2030.

EUV systems are essential for powerful chip production at 3-nanometer and lower process nodes. ASML remains the sole supplier of EUV lithography machines, with US sanctions preventing sales to China since 2019. The complexity of EUV systems, with no single blueprint, poses a significant challenge for China to rival ASML’s technology.

Mastering EUV technology is crucial for deep submicron chip manufacturing, but China’s full mastery remains uncertain. Producing economically viable chips from the prototype machine could take years, despite advances in EUV radiation generators and lithography equipment by Chinese companies. ASML’s advantage lies in its unmatched supply chain integration and advanced technology.

Former ASML engineers in China have made progress in developing an EUV light source platform, offering hope for domestic production of advanced integrated circuits. China’s market for lithography machines is dominated by ASML and Japanese suppliers, leaving China reliant on foreign technology and expertise. China’s ambition to master EUV technology highlights the growing importance of semiconductor self-sufficiency in global tech competition. China has achieved only 1.5% self-sufficiency in lithography and 10% in wafer fab equipment. The country is still lacking in metrology and inspection processes. Despite EUV system development in Shenzhen, China is exploring DUV technology. Huawei attempted to reach 2nm-class performance using DUV machines. Reuters reported Huawei’s involvement in the EUV project.

Read more at Yahoo Finance: China eyes mastery of EUV lithography, bolstering AI chip ambitions, analysts say