China may know how to design and etch semiconductors, but the means at its disposal are still limited. For its internal production, the country relies on SMIC, which is unable to compete with TSMC in this sector, as the Taiwanese foundry is ahead of the game. However, the country could well catch up on its production methods, as we learn that an EUV production machine (technology similar to ASML) has been assembled and is entering the test phase!
China tests its own EUV machine!
Until now, when it comes to cutting-edge semiconductors, the USA was in charge of design, the Europeans (via ASML) supplied the production equipment, and Taiwan managed mass production… when China was under sanctions. But the cards are being reshuffled as the country now designs its own chips and assembles and tests modern production tools.
In fact, Huawei is behind this initiative. The brand wants to develop and fully control its AI sector, from silicon production to chip design and etching. For this, we can assume that the brand is behind the assembled prototype. The latter is based on ASML parts purchased on the secondary market, and this has made it possible to reverse-engineer the EUV lithographic scanners essential for this type of tool.
Earlier this year, Huawei was already carrying out tests at its Dongguan plant. To produce the laser used for silicon etching, the company uses a different technology from ASML, called LDP. Broadly speaking, “the Chinese system generates 13.5 nm radiation by vaporizing tin between two electrodes and converting it into plasma via a high-voltage discharge, where the collision between ions and electrons generates the required wavelength”. This difference in technology means, on paper, a smaller footprint and, at first glance, energy savings and lower production costs.
For China, this is good news, but there are still many challenges to be overcome before a device is functional under industrial conditions. Indeed, the technology needs to mature, to be able to engrave in sufficient quantity and at a constant throughput rate, all without major defects, while ensuring a satisfactory component lifespan. And on these precise points, it’s here that ASML’s lead is clear for the time being.