This month, Chinese authorities released their first major technology equipment promotion application guidance catalog, which includes an argon fluoride lithography machine capable of producing chips with a process node of 8nm or less. This development indicates that China may have successfully developed a domestic deep ultraviolet lithography machine for the production of 8nm and smaller chips.
On September 9, the Ministry of Industry and Information Technology of China published a list of integrated circuit production equipment, which features an argon fluoride lithography machine designed for processes of ≦8nm. Various media reports suggest that this machine is intended for use in deep ultraviolet lithography and possesses the capability to produce chips at 8nm and below.
As China's independent research and development capabilities in semiconductor manufacturing continue to grow, this advancement could not only reshape the landscape of the Chinese semiconductor industry but also have far-reaching implications for the global semiconductor market competition.
Should China successfully produce a domestic deep ultraviolet lithography machine for 8nm and below processes, the majority of chip manufacturing would no longer be dependent on Dutch computer chip equipment supplier ASML. This progress would significantly enhance China's self-reliance in semiconductor manufacturing, marking a breakthrough in critical technological areas. With increased self-sufficiency, China’s competitiveness in the global semiconductor industry will further improve, fostering rapid growth in its domestic semiconductor sector.
In this context, the United States may need to reassess its semiconductor supply chain strategy, particularly regarding the supply of high-end manufacturing equipment. If China successfully develops a lithography machine, it would pose a challenge to U.S. export control policies and potentially weaken the effectiveness of its technology embargo. Furthermore, the U.S. might tighten its controls over allies regarding high-end equipment and technology to prevent China from acquiring critical technologies, thereby ensuring its dominant position in the global semiconductor market.
On the other hand, the Netherlands announced on September 6 that it would expand export licensing requirements for ASML's 1970i and 1980i deep ultraviolet immersion lithography equipment, aligning its regulations with the U.S. unilateral export restrictions imposed on these machines last year. In response, Chinese officials expressed dissatisfaction and urged the Netherlands to refrain from abusing export control measures.
Lithography machines play a crucial role in semiconductor manufacturing, enabling the printing of highly complex circuit patterns onto silicon wafers. Currently, 99% of the Chinese lithography machine market is dominated by ASML, along with Japan's Nikon and Canon, but only ASML can manufacture lithography equipment required for chips smaller than 7nm. If China successfully develops its own lithography machine, it is likely to put pressure on ASML’s market monopoly and compel the company to adjust its competitive strategies.