China Starts Manufacturing DUV Lithography Machines, Begins Shipping to SMIC in 2026

On July 27, a state-backed Chinese firm began manufacturing domestically developed immersion deep ultraviolet (DUV) lithography machines, the critical tools used to etch patterns onto semiconductor wafers. The initial production run targets roughly five machines in 2026, scaling to approximately twenty in 2027, compared to ASML's projected output of around 130 DUV units in 2026.

The first shipments are earmarked for China's largest chipmakers, including SMIC, Hua Hong Semiconductor, and ChangXin Memory Technologies. The move carries significant implications for ASML's market position; China accounted for 33% of the Dutch lithography equipment manufacturer's total revenue in 2025, with projections showing a decline to approximately 20% in 2026. As advanced chip fabrication underpins the production of application-specific integrated circuits (ASICs) required for Bitcoin mining hardware, disruptions to global chipmaking supply chains could affect mining equipment costs and production timelines.