A Chinese company in Shanghai has begun limited production of immersion DUV lithography machines, targeting 5 systems for delivery this year and approximately 20 by 2027. This marks a significant step toward domestic DUV production, reducing reliance on ASML.

Initial deliveries are planned for SMIC, CXMT, and Hua Hong. Immersion DUV machines use an argon-fluoride excimer laser to produce 193 nm wavelength light, which passes through ultra-purified water to imprint circuit designs on wafers. While conceptually straightforward, these tools are highly complex; ASML shipped 131 such machines last year.

Key questions remain about throughput and capability. ASML's flagship TWINSCAN NXT:2150i processes over 310 wafers per hour and achieves 7 nm and 5 nm nodes with multi-patterning. CXMT primarily uses mature 10 nm nodes for DRAM, but SMIC faces challenges adapting the tool for its N+3 5 nm-class node, potentially requiring self-aligned quadruple patterning (SAQP).