China-backed Aishengna starts low-volume immersion DUV lithography production

Shanghai Aishengna Electronic Technology Group, a state-backed company identified by Reuters as the previously unnamed manufacturer, has begun low-volume production of domestically developed immersion DUV lithography machines for planned delivery this year to Chinese chipmakers including SMIC, Hua Hong Semiconductor and ChangXin Memory Technologies. The Information reported output targets of about five units this year and roughly 20 in 2027. The development marks progress in China’s semiconductor self-sufficiency push, but analysts told CNBC it is unlikely to materially challenge ASML in the near term because the Chinese tools still require further testing and trail ASML’s systems on yield, reliability, fleet support and production scale. ASML shares fell as much as 8% on Monday and were down 1.8% on Tuesday, though analysts said locally built tools may mostly replace revenue already constrained by export controls rather than erode ASML’s sold-out global order book.