China's own ASML: begins construction of chip-making machines
New Chinese DUV machines are not yet on par with those from ASML, but could intensify competition in the long run.
Published on July 28, 2026
© Bart van Overbeeke
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China has begun production of advanced chip manufacturing equipment that it developed in-house. This was reported by the technology website The Information. The machines are intended for chip production and use DUV immersion lithography.
Support from the Chinese government
The first systems are expected to be delivered this year to major Chinese chip manufacturers, including SMIC, Hua Hong Semiconductor, and ChangXin Memory Technologies. The name of the manufacturer has not been disclosed. According to reports, it is a company supported by the Chinese government.
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China wants to be independent
This development is significant because China has been trying for years to reduce its dependence on foreign chip technology. So far, the Dutch company ASML has been the world’s leading supplier of advanced lithography machines.
ASML’s lead remains significant
Nevertheless, ASML’s lead remains significant for the time being. The Chinese machines are reportedly less performant and less reliable. It is also not yet clear whether they can be produced on a large scale. Approximately five machines are expected to be built this year, followed by about twenty in 2027.
Investors react
Investors reacted immediately to the news. ASML’s stock lost about 8 percent during the final hour of trading on Monday. Chip supplier Besi also closed the day significantly lower. The arrival of a Chinese competitor could have long-term consequences for ASML’s position in the Chinese market.