BIG: A state-backed Shanghai company has begun limited mass production of China's first domestic immersion DUV lithography machines, with about 5 units due for delivery to SMIC, Hua Hong, and CXMT in 2026, ramping to 20 in 2027.
The tools target 28 nm processes and can support 7 nm-class production via multi-patterning, though they still lag ASML in throughput, accuracy, and reliability.
ASML shares dropped sharply on the news and trading was briefly halted, while Applied Materials, Lam Research, and KLA also fell.
It doesn't close the EUV gap needed for leading-edge chips, but it's a real step in blunting US and Dutch export controls on mature and mid-range nodes.
Source: The Information