In a development that could significantly reshape the global semiconductor landscape, China has reportedly made substantial progress in developing domestic extreme ultraviolet (EUV) lithography technology, potentially circumventing Western export restrictions that have hindered its advanced chip production capabilities.
The LDP Alternative to ASML's Technology
According to recent reports, China is developing an alternative EUV system using laser-induced discharge plasma (LDP) technology, which differs from the laser-produced plasma (LPP) approach employed by Dutch giant ASML, the world's only current producer of EUV lithography machines. The Chinese system is currently undergoing testing at Huawei's facility in Dongguan, with trial production scheduled for the third quarter of 2025 and mass production targeted for 2026.
The significance of this development cannot be overstated. EUV lithography represents the most advanced chip manufacturing technology currently available, enabling the production of semiconductors with features measuring just a few nanometers. Until now, ASML's monopoly on EUV technology, combined with export restrictions imposed by the United States and its allies, has effectively capped China's semiconductor advancement.
Technical Merits of China's Approach
What makes this development particularly notable is that some experts, including a researcher from TSMC, believe China's LDP method could potentially be more efficient than ASML's LPP technology. While the technical details remain closely guarded, LDP technology could theoretically offer advantages in terms of power efficiency and operational costs.
Nevertheless, significant challenges remain before China's domestic EUV technology can compete with ASML's established systems. These include:
- Power Output Scaling: Current prototypes reportedly generate between 50-100W of power, but commercial viability requires reaching approximately 250W
- Optical Component Precision: Manufacturing the extremely precise mirrors and optical components required for EUV lithography presents enormous technical challenges
- Systems Integration: Successfully integrating the technology into mass production environments will require overcoming numerous engineering obstacles
Industry Implications and Geopolitical Considerations
Huawei and Semiconductor Manufacturing International Corporation (SMIC), China's leading chip manufacturer, are reported to be at the forefront of adopting this technology. If successful, China could become the only country outside the Netherlands with EUV capabilities, potentially disrupting the current semiconductor manufacturing hierarchy.
From a geopolitical perspective, this development represents a significant step in China's push for technological self-sufficiency. After years of being unable to access ASML's EUV machines due to US export restrictions, China appears to be forging its own path toward advanced semiconductor manufacturing capabilities.
Industry analysts suggest that if China succeeds in commercializing its LDP-based EUV technology and advances to 3nm or 2nm chip production by 2030, it could emerge as a major competitor to established players like TSMC and Samsung. However, the path to this outcome remains challenging and uncertain, with potential for further export controls or other geopolitical measures that could impact development.
As this story continues to develop, the semiconductor industry will be watching closely to see whether China's approach to EUV lithography can translate into commercial success and how Western governments and companies might respond to this technological challenge to their dominance.