China has been on a relentless journey toward achieving technological self-sufficiency, especially in the semiconductor sector, as it faces increasing pressure from US sanctions. Recently, the Chinese government introduced two new chip-making machines, indicating progress in this crucial area. These machines, built domestically, are designed to print complex circuit patterns onto silicon wafers. This process is vital in producing semiconductors, which are the backbone of modern technology. However, despite these advancements, China still faces significant challenges in catching up with global leaders in chip-making technology.
Breakthroughs in Domestic Lithography Machines
The two new machines highlighted by the Chinese government are deep ultraviolet (DUV) lithography machines. These machines use light to etch incredibly tiny, detailed patterns onto silicon wafers, which form the essential circuits of chips. According to China’s Ministry of Industry and Information Technology (MIIT), these machines have achieved important technological breakthroughs and are equipped with intellectual property rights.
One of the two DUV lithography machines operates at a wavelength of 193 nanometres (nm), which allows it to create circuits with a resolution below 65nm and an overlay accuracy below 8nm. In simple terms, the machine can etch tiny, intricate patterns onto silicon wafers with relatively good precision. The second DUV machine operates at a wavelength of 248nm and has a resolution of 110nm, with an overlay accuracy of 25nm. These machines have been hailed as a step forward, but they have yet to prove their performance on the market.
Despite these achievements, China’s lithography machines still trail behind the most advanced machines used globally. ASML, a Dutch company that dominates the global market for lithography machines, produces DUV machines with much finer resolutions. For instance, one of ASML’s top DUV machines can operate at a resolution of below 38nm, with an overlay accuracy of just 1.3nm.
DUV vs. EUV: A Big Technological Gap
Although the newly developed DUV machines mark progress, they still lag significantly behind the most cutting-edge technology in the world of chip-making: extreme ultraviolet (EUV) lithography. EUV machines use light with an extremely short wavelength of just 13.5nm, which is almost 14 times more precise than the light used in DUV machines. This precision allows EUV machines to etch much finer and more intricate circuits, which are necessary for producing advanced chips found in today’s smartphones, computers, and other high-tech devices.
Unfortunately, China remains far from producing its own EUV lithography machines. Most of the country’s lithography machines, including those needed to manufacture advanced chips, still come from ASML. However, US sanctions have made it more difficult for Chinese companies to obtain this equipment. ASML has already cut off the supply of its most advanced EUV machines to China and is under increasing pressure from the US to stop selling even its DUV machines to Chinese customers.
Challenges in Achieving Self-Sufficiency
China has long sought to reduce its reliance on foreign technology, especially in the semiconductor industry, which is crucial for everything from consumer electronics to national defense. However, developing the advanced lithography systems needed to mass-produce high-quality chips has proven to be an uphill battle.
One of the companies at the forefront of China’s push for chip-making independence is Shanghai Micro Electronics Equipment Group (SMEE). As the country’s leading hope for developing advanced lithography technology, SMEE has been working on improving its machines. But the company still lags significantly behind its global competitors, like ASML. SMEE faces additional challenges due to trade restrictions imposed by the US, which added the company to a trade blacklist in December 2022. This has made it even more difficult for SMEE to access the international suppliers and technologies it needs to make significant advancements.
Despite these challenges, SMEE has made some progress. Last year, the company filed a patent related to EUV radiation generators and lithography equipment, signaling that it is at least making strides in the right direction. However, experts agree that it will take time, along with breakthroughs across multiple technologies, for China to develop the kind of advanced lithography systems that would enable it to mass-produce cutting-edge chips domestically.
The Path Ahead for China’s Chip-Making Industry
China’s efforts to achieve self-sufficiency in the chip-making semiconductor industry reflect its broader ambitions to become a technological leader on the global stage. However, the journey is long, and the obstacles are many. The new DUV chip-making lithography machines are certainly a step in the right direction, but they still fall short of the capabilities required to produce the most advanced chips in the world. For now, China remains dependent on foreign technology, particularly from companies like ASML, to meet its needs in the chip-making semiconductor industry.
While China has made notable advancements in developing its own chip-making technology, significant gaps remain. The new DUV lithography machines represent progress, but they are still far from matching the performance of the world’s most advanced machines. Overcoming these challenges will require continued investment, innovation, and perhaps most importantly, access to the global supply chains and technologies that currently remain out of China’s reach.
