China's push for homegrown chip tools highlights ASML's position in U.S.-China tech tensions
Reuters reports on China’s efforts to develop its own immersion deep ultraviolet (DUV) lithography machines, a key technology used in modern semiconductor manufacturing. This development is seen as part of Beijing’s broader strategy for technological self-reliance and highlights the growing pressure on ASML, Europe's largest listed chip equipment maker. The emergence of Shanghai Aishengna Electronic Technology Group as a local producer could challenge ASML’s dominance in this market segment. ASML has faced declining access to China due to U.S.-led export controls restricting sales of its most advanced EUV and immersion DUV tools, which are critical for high-end chip production. While the immediate threat from Chinese competitors is limited—given that Aishengna plans only a small number of machines in 2026 compared to ASML’s hundreds—the long-term implications could be significant if China continues its push toward self-sufficiency. Analysts suggest that while current damage may not be severe, the trend signals growing competition and potential revenue risks for ASML. The U.S. Congress is also considering further restrictions on exports of immersion DUV tools to China, which would likely accelerate domestic alternatives in Beijing.
Topics: ASML China chip industry lithography tools U.S.-China tech rivalry