A Chinese state-backed company has begun mass-producing deep ultraviolet lithography machines for domestic use, marking a step toward self-sufficiency in semiconductor manufacturing equipment. DUV machines, though older technology than extreme ultraviolet alternatives, remain widely used in modern chip production. The firm intends to deliver units to major Chinese chipmakers including CXMT, Hua Hong Semiconductor, and SMIC this year, directly challenging the market dominance held by Dutch manufacturer ASML.

These initial Chinese machines currently lag behind existing competitors in performance and reliability, limiting their capacity to fully replace foreign equipment. The milestone arrives as the US Congress has proposed measures to restrict sales and servicing of DUV machines to China, reflecting broader geopolitical competition over semiconductor supply chains and technological capabilities between the nations.