China’s EUV Machines Entering Trial Production in Q3 2025: Simplified Design to Benefit SMIC and Huawei

The advancement of Deep Ultraviolet (DUV) technology is significantly influencing the trajectory of China’s leading semiconductor manufacturer, SMIC. Despite reports of successfully producing a 5nm wafer, SMIC continues to face challenges such as inflated production costs and unsatisfactory yield rates. These hurdles have also adversely affected Huawei, hampering its attempts to surpass the 7nm production barrier.

Compounding these challenges, U. S.trade sanctions have restricted ASML from supplying cutting-edge Extreme Ultraviolet (EUV) lithography machines to any Chinese enterprises. Consequently, Chinese engineers are compelled to rely on domestic solutions, and recent documents indicate that test production of this in-house technology is slated to begin in the third quarter of 2025.

The innovative EUV devices reportedly utilize laser-induced discharge plasma (LDP), presenting a notable distinction from ASML’s laser-produced plasma (LPP).The following sections will explore the implications of this technological variation.

Potential Launch of Homegrown EUV Machines in 2026: A Game-Changer for China’s Semiconductor Industry

The anticipated mass production of China’s indigenous EUV machinery promises to diminish its reliance on foreign firms under U. S.influence and potentially grant China a competitive edge in the semiconductor marketplace. Images published on social media by accounts such as @zephyr_z9 and @Ma_WuKong showcase a new system undergoing tests at Huawei’s Dongguan facility. A previous report indicated that a research team from Harbin Provincial Innovation has developed a discharge plasma extreme ultraviolet lithography light source capable of generating EUV light at a wavelength of 13.5nm, precisely tailored for the photolithography sector.

The trial system, currently operational at a Huawei site, employs LDP to produce 13.5nm EUV radiation. This advanced method involves vaporizing tin between electrodes, converting it to plasma through high-voltage discharge, and facilitating electron-ion collisions that yield the desired wavelength. In what ways does this approach differ from ASML’s LPP technology?

ASML’s sophisticated machinery employs high-energy lasers and intricate control systems using Field Programmable Gate Arrays (FPGAs).Preliminary reports suggest that the prototype being tested at Huawei is characterized by a more streamlined design and reduced power consumption, leading to lower manufacturing costs. Until now, SMIC and other Chinese firms have had to rely heavily on outdated DUV systems.

Traditional lithography tools utilize wavelengths of 248nm and 193nm, which are substantially less advanced than the 13.5nm EUV technology. This limitation forces SMIC to engage in multiple patterning techniques to achieve advanced nodes, significantly inflating wafer production costs and prolonging timelines—a combination that can translate into exorbitant expenses. Reports estimate that the production cost of SMIC’s 5nm chips could be up to 50% higher than that of TSMC’s equivalent chips, explaining why this advanced technology has not yet found its way into broader applications.

Currently, Huawei’s efforts are confined to the 7nm process for its Kirin chipsets, pushing the company to make only incremental improvements. With the development of its in-house EUV machines, Huawei has the potential to close the gap with competitors like Qualcomm and Apple. However, it’s essential to note that industry trends suggest that similar firms often encounter significant obstacles, which can impede progress. There is hope that both Huawei and China as a whole can navigate these challenges and emerge as formidable players in the global semiconductor arena.

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