China is increasing AI chip production by upgrading older ASML machines
Technology
China is increasing its AI chip production by upgrading older machines from the European company ASML, the Financial Times has discovered. According to the newspaper's sources, these are Chinese smartphone and chip foundries that have managed to increase the productivity of deep ultraviolet lithography (DUV) machines manufactured by the Netherlands-based company. The newspaper noted that US and Dutch export controls prohibit ASML from supplying China with the most advanced machines of this type.
China is increasing its AI chip production by upgrading older machines from the European company ASML, the Financial Times reports, citing sources familiar with the matter. According to the newspaper's sources, Chinese smartphone and chip foundries have managed to increase the productivity of deep ultraviolet lithography (DUV) machines manufactured by the Netherlands-based company.
The FT noted that US and Dutch export controls prohibit ASML from supplying China with the most advanced machines of this type. This forces China to rely on older equipment, specifically the Twinscan NXT:1980i system, to produce 7-nanometer chips needed for AI development. The publication's sources added that Chinese fabs are sourcing components from the secondary market, including an upgraded stage, a mechanical system for placing silicon wafers, and lenses and sensors that ensure more precise alignment of chip layers. These improvements have enabled ASML to increase its AI chip production capacity using DUV machines.
According to the publication, Semiconductor Manufacturing International Corporation (SMIC) and Huawei are among those using older ASML machines to produce 7-nanometer chips. However, the newspaper noted that it is unknown whether they have additional components for upgrading their equipment.
The FT noted that US and Dutch export controls prohibit ASML from supplying China with the most advanced machines of this type. This forces China to rely on older equipment, specifically the Twinscan NXT:1980i system, to produce 7-nanometer chips needed for AI development. The publication's sources added that Chinese fabs are sourcing components from the secondary market, including an upgraded stage, a mechanical system for placing silicon wafers, and lenses and sensors that ensure more precise alignment of chip layers. These improvements have enabled ASML to increase its AI chip production capacity using DUV machines.
According to the publication, Semiconductor Manufacturing International Corporation (SMIC) and Huawei are among those using older ASML machines to produce 7-nanometer chips. However, the newspaper noted that it is unknown whether they have additional components for upgrading their equipment.
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