Shanghai Aishengna named as the maker of China’s first domestic immersion DUV chipmaking tools — first viable domestic 7nm-capable scanner to be completed by 2038
Reuters has named Shanghai Aishengna Electronic Technology Group as the state-owned company producing China’s first domestic immersion deep ultraviolet lithography (DUV) scanners, a day after news of the program broke without identifying the manufacturer. Aishengna was established in August 2023 with RMB 7 billion, around $1 billion, in registered capital and is thought to have absorbed engineering teams from Shanghai Yuliangsheng Technology and Shanghai Micro Electronics Equipment.
Aishengna has been named by a single source who declined to be named, and its shareholders, SMEE and Yuliangsheng, didn’t respond to requests for comment. SMIC has been testing a Yuliangsheng immersion tool since September 2025, and first deliveries are slated for SMIC, Hua Hong Semiconductor, and ChangXin Memory Technologies.
Photoresist, coater tracks, and light sources
Tokyo Electron held an 89% share of the global coater/developer market in 2022, per Shared Research‘s analysis of the company’s own disclosures, with its chief executive putting the figure near 90% and at 100% for EUV production. A scanner only exposes the wafer, however. It’s the track that’s responsible for applying the resist film, baking it, and developing the pattern after exposure, and it has to be mechanically and thermally matched to the scanner in a single cluster, which is why the two are bought together. Shenyang Kingsemi has reached 28nm-class track capability and is currently targeting 14nm.
JSR, Tokyo Ohka Kogyo, Shin-Etsu, and Fujifilm hold a combined 72.5% of the ArF photoresist market, while Chinese suppliers hold under 1% of ArF immersion resist specifically. Nata Opto-electronic built a 25-ton ArF line, later expanded to 50 tons, passed customer qualification in December 2020, and completed project acceptance in 2024 with little volume to show for it. Xuzhou B&C says its ArF immersion products cover 45nm to 28nm and can stretch to 14nm, and chairman Fu Zhiwei has put mass production of China’s core advanced resists five years out.
Cymer, Gigaphoton, and Coherent hold more than 80% of the ArF excimer laser market between them, and Cymer has been an ASML subsidiary since 2013. Beijing RSLaser shipped China’s first high-power domestic excimer laser in 2018 under the national Project 02 program and has a 4 kHz 193nm ArF prototype aimed at 90nm and 65nm-class tools, generations behind what 28nm immersion requires.
Carl Zeiss SMT has been ASML’s sole projection optics supplier since 1983, and Zeiss SMT revenue grew from €1.2 billion in 2016 to €4.1 billion in 2024. It’s not currently known what, if any, Japanese tooling is inside the Aishengna machines, but excimer sources and precision optics are areas where Chinese substitution is believed to be lacking.
CXMT
CXMT is projected to reach around 350,000 wafer starts per month by the end of 2026, roughly 25,000 short of Micron, up from 40,000 in 2020. DRAM scaling at 1a and 1b-class nodes runs on immersion multipatterning because CXMT has no EUV access, which makes any potential ramp lithography-gated rather than cleanroom-gated. DRAM contract prices rose 93% to 98% quarter on quarter in Q1 2026, and TrendForce projected a further 58% to 63% in Q2, lifting DRAM industry revenue 81% to $97 billion. A domestic immersion source is therefore worth having to CXMT, even at inferior overlay and throughput.
A DUV-only 7nm flow needs roughly 19 spacer-defined multipatterning masks from the front end through the second metal layer, against about 10 for an EUV-based N7+ process, by one published comparison of SMIC’s process. SemiAnalysis has put SMIC’s 7nm defect density near 0.14, around double TSMC’s N5 and N6. ASML CEO Christophe Fouquet told analysts during the company’s July earnings call that rising DRAM lithography intensity partly reflects “the increased replacement of multi-patterning with more cost-effective single-exposure EUV.” As such, every exposure China adds to compensate for the missing EUV burns scanner hours a thin domestic fleet doesn’t have.
The MATCH Act
China fell to about 14% of ASML’s sales in Q2 2026 from 33% across 2025, and installed base management, the service and upgrade business, brought in €2.8 billion of ASML’s €9.3 billion in second-quarter revenue. H.R. 8170 would ban both the export and the servicing of immersion DUV systems to any destination in China and designate SMIC, Hua Hong, Huawei, CXMT, and YMTC as restricted entities by statute. Former ASML chief executive Peter Wennink has said the company can service most Chinese tools, but not with spare parts of U.S. origin that fall under export control, which is the mechanism that the MATCH Act would widen.
The bill remains in committee after clearing the House Foreign Affairs Committee in April, with a Senate companion filed as S. 4281, and no floor vote yet scheduled. Its 150-day allied-alignment clause would also reach Nikon, which sold 11 ArF immersion systems in FY2024 and none in the first three quarters of FY2025, and which plans to deliver a new immersion prototype to a major chipmaker by 2027. ASML expects about 130 immersion shipments this year and intends to raise immersion capacity 30% in 2027, with a further 30% under investigation for 2028.
As for Chinese providers, SMEE prototyped its SSA600 ArF tool in 2011 and never reached sustained commercial sales, and a late-2023 shareholder claim that the company had developed a 28nm machine was subsequently retracted. SiCarrier showed etch, CVD, PVD, and ALD tools at SEMICON China 2025 without a lithography system, and a December 2025 government contract reported as a lithography award turned out to cover a KrF tool at 110nm. We’ve previously assessed that China’s toolmakers are more than a decade behind the market leaders.
The AI Futures Project’s June forecast puts a commercially viable domestic 7nm-capable immersion scanner between 2032 and 2038, with a median of 2035, and claims ASML holds 98.7% of the immersion market today. Five machines in 2026 would be under 4% of ASML’s annual immersion output, and each would still need a coater track, a qualified ArF immersion resist, and an excimer source to print a single wafer; China leads in none of those three.
