Chinese Start-up Unveils EUV Light-Source Prototype Amid Chipmaking Self-Reliance Push

Shanghai-based Langdao Silex has unveiled a self-developed prototype extreme ultraviolet (EUV) light-source system at the China International Industry Fair in Shanghai. The prototype marks an early but critical step in Beijing's effort to achieve self-reliance in chipmaking equipment. An EUV light source generates the light required to expose microscopic circuit patterns onto silicon wafers in advanced lithography equipment.

A company representative said 90% of the machine's components were localised, according to Jiefang Daily on Tuesday. The representative said the vast majority of core parts were developed in-house, according to Jiefang Daily. On-site staff described the prototype as a crucial step toward moving domestically produced EUV light sources from laboratories to industrial applications, Jiefang Daily reported. However, the staff said mass production remained three to five years away, according to Jiefang Daily.

China remains cut off from the global supply chain for the most advanced chipmaking equipment amid the US-China technology conflict. Washington-led export restrictions bar ASML, the world's sole manufacturer of EUV lithography systems, from selling those systems to Chinese customers. Domestic chipmakers have consequently relied on older deep ultraviolet equipment and multi-patterning techniques. Those constraints have spurred local researchers to pursue domestic EUV capabilities.

Some global industry leaders remain sceptical about rapid breakthroughs in China. ASML CEO Christophe Fouquet said during an investor call on Wednesday that Chinese customers had little incentive to develop domestic alternatives while those customers retained access to ASML products. Fouquet said China still had "a very, very long way to go" to match ASML's technology.

Langdao Silex was founded in 2024. Langdao Silex's website says a research team from Tsinghua University's Gas Discharge and Plasma Laboratory backed the start-up. The team specialised in laser-produced plasma EUV light sources, according to the website. Langdao Silex has secured multiple funding rounds from state-backed and prominent industry investors. The investors include China Fortune-Tech Capital, an investment arm tied to Semiconductor Manufacturing International Corporation (SMIC), China's top foundry. Langdao Silex is among a handful of Chinese companies and research institutes that have reported progress in advanced lithography development. None has yet reached the commercial stage.

Domestic equipment suppliers are also expanding across other stages of chipmaking. Hwatsing Technology introduced a medium-current ion implanter at the concurrent WeSemiBay semiconductor expo in Shenzhen. Leadmicro showcased advanced thin-film deposition equipment at the expo. Piotech announced a carbon-film deposition technology for memory and logic chips.

Bernstein Research said in a Tuesday report that Chinese equipment manufacturers were rapidly increasing adoption of domestically produced components. Bernstein attributed the increase to Beijing's localisation drive and tighter supplies of key components from Europe and Japan. Bernstein forecast that domestic suppliers would capture 52% of China's wafer-fabrication equipment market by 2028, up from an estimated 28% this year.