China Accelerates Semiconductor Self-Reliance Despite U.S. Sanctions… 90% of Key EUV Components Now Domestically Produced

China has achieved 90 percent localization of core components for EUV lithography equipment despite U.S. technology restrictions. At the Shanghai industrial expo, a Chinese company unveiled a prototype of a light source system, a key component of extreme ultraviolet (EUV) lithography equipment essential for advanced chip production. The company said it had localized 90 percent of the components, though commercialization is expected to take at least three more years.

Wang Hao, an official involved in the EUV development, called it "a miracle in itself," adding, "The carbon dioxide laser used here employs discharge plasma technology, and we have accumulated core expertise for more than 20 years."

Apart from indigenous development, China is also accelerating efforts to secure foreign equipment. ASML, the Dutch equipment maker, saw its China equipment revenue in the third quarter surge 109 percent from the previous quarter. China is expanding its semiconductor production base by pursuing homegrown technology and overseas equipment imports in parallel.

Chinese NAND flash maker YMTC rose to third place in the global market in the second quarter of this year. Chinese DRAM maker CXMT has also made progress in developing next-generation cell structures that increase storage capacity. "DRAM product development usually happens in six-month cycles, but CXMT runs multiple processes simultaneously and can roll out new versions as often as once a week," explained the chairman of a Chinese chip inspection equipment company.