China Stockpiles 343 Immersion DUV Machines, Gaining 7-nm AI Chip Base

The acquisition of these DUV machines, particularly the NXT:1980i model, appears to stem from a perceived gap in U.S. export controls. While advanced extreme ultraviolet (EUV) systems were restricted, older DUV models, including immersion DUV, remained accessible through case-by-case approvals from the Dutch government. This distinction allowed China to continue importing equipment that, while not cutting-edge, can still be adapted for advanced chip manufacturing. The report indicates China spent over $13 billion on additional NXT:1980i machines in 2024 and 2025.

Immersion DUV technology, by using water between the lens and wafer, enhances precision compared to dry DUV, enabling the production of 7-nanometer logic chips and high-end memory. China's strategy of combining these imported machines with multi-patterning, a technique that draws circuits in overlapping layers, suggests an effort to overcome DUV's inherent limitations. This approach aims to maximize the utility of available technology to produce components like Huawei's Ascend AI accelerators and advanced memory.

The U.S. think tank projects that if China continues to import 90 NXT:1980i machines annually, it could potentially churn out as many as 434 million high-performance AI chips a year by 2035, which researchers equated to Nvidia's H100 graphics processing units. This projection suggests that the current level of DUV machine access could significantly contribute to China's domestic AI chip output, even as it simultaneously pursues indigenous DUV equipment development.