Chinese memory manufacturers CXMT and YMTC have reportedly acquired a sufficient quantity of deep ultraviolet (DUV) lithography machines from ASML to support their expansion plans for the next three years. This procurement comes amid a broader push within China for technological self-sufficiency and a reduction in reliance on foreign hardware, though domestic alternatives are still noted to be several years behind ASML's productivity.
While extreme ultraviolet (EUV) lithography represents the cutting edge of chipmaking technology, DUV machines remain essential for a significant portion of global chip production, even for leading companies like Samsung and TSMC. These two companies are slated to transition to high-numerical aperture (high-NA) EUV production by 2028 and 2030, respectively, but continue to utilize DUV technology in their current processes.
Despite rumors and concerns regarding China potentially obtaining ASML's advanced EUV machines, which are banned for export to the country, ASML has denied such occurrences. The reported acquisition of DUV machines suggests that China can continue to rapidly advance its chipmaking capabilities even without direct access to EUV technology.
The acquisition of DUV machines will bolster the expansion efforts of CXMT and YMTC. CXMT, in particular, has been steadily increasing its market share, with its memory products predominantly used within China. However, this domestic focus is not guaranteed to remain constant, and the competitive pressure exerted on Western memory makers by Chinese customers is a notable trend. The increasing sophistication of Chinese memory components is evidenced by their appearance in RAM kits that meet Western gaming PC specifications, signaling the significant progress of China's memory industry.