China is reportedly making significant strides in semiconductor manufacturing, with trial production of its homegrown EUV lithography machines expected to begin in Q3 2025. This development arises amid U.S. export restrictions on ASML’s EUV technology, suggesting that China is finding alternative methods to advance its semiconductor capabilities.

China appears to be on the verge of a significant breakthrough in semiconductor technology with its homegrown extreme ultraviolet (EUV) lithography machines. Reports indicate that trial production of these machines may commence in the third quarter of 2025 at Huawei’s facility in Dongguan, with an aim for mass manufacturing in 2026. This development follows the United States’ export restrictions on advanced EUV technology from trusted suppliers such as ASML.

The Dutch company ASML, which dominates the EUV machine market, has been barred from selling its advanced equipment to China. ASML President and CEO Christophe Fouquet previously asserted that these restrictions would inhibit China’s semiconductor advancements by a decade or more, as reported by NRC. However, China seems to be developing its own solutions to circumvent these limitations.

A research team from Harbin Provincial Innovation has successfully crafted a “discharge plasma extreme ultraviolet lithography light source” that generates EUV light at a wavelength of 13.5 nm. This new technology is crucial for advanced photolithography applications. Utilizing a laser-induced discharge plasma (LDP) method, the system vaporizes tin between electrodes and creates necessary EUV radiation through plasma generation and electron-ion collisions.

China’s approach is distinguished from ASML’s laser-produced plasma (LPP) method, which employs high-energy lasers and complex controls. The LDP design promises a more straightforward setup, reduced physical footprint, enhanced energy efficiency, and potentially lower operational costs. This innovation could alleviate the limitations imposed by U.S. sanctions on semiconductor technology imports.

Despite SMIC’s attempts to produce 7nm chips using outdated deep ultraviolet (DUV) machines, the foundry has reported challenges with yield rates. These difficulties highlight the urgency for China to advance its lithography capabilities to meet international semiconductor demands effectively.

In summary, China’s progress in establishing its own EUV lithography technology suggests significant potential in overcoming existing export restrictions imposed by the U.S. The development of the new LDP system marks a pivotal moment for the nation’s semiconductor industry, particularly as efforts continue to improve manufacturing processes amidst ongoing competition with leading firms like ASML. The ability to produce advanced chips could enhance China’s standing in the global semiconductor market.

Original Source: www.trendforce.com

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