China unveils prototype of key EUV lithography equipment component ... “90% localization” ... challenges ASML Holding N.V. (ASML)

[Financial News] A Chinese company has unveiled a prototype of a key component for extreme ultraviolet (EUV) lithography equipment that it developed in-house.
According to Observer Network, Hong Kong 01 and other outlets, on the 15th (local time), Chinese company Langdao Suiyan unveiled a prototype of an “EUV light source system” for the first time at the 26th China International Industry Fair in Shanghai.
The result has drawn attention as it comes amid China’s emphasis on technological self-reliance in response to U.S. restrictions on exports of advanced semiconductor manufacturing equipment. Hong Kong 01 described the component as the “heart” of lithography equipment and rated it the most advanced among Chinese-made products unveiled to date.
A company representative said the localization rate of its EUV light source system had reached 90% and that it had independently conducted research and development (R&D) on most of the key components. The representative added that its technological approach was in line with those of the world’s leading companies and that the system was at a level suitable for wafer lithography testing.
The representative nevertheless said it would still take 3–5 years to mass-produce the component commercially, citing increased output and stability during long-term operation as key challenges.
Commercial EUV lithography equipment has light-source output in the hundreds of watts (W) and must remain stable even during high-intensity, long-duration operation. The prototype is said to remain clearly short of that level, with the challenges requiring cooperation across the industry supply chain to overcome.
In 2013, ASML acquired Cymer, then the world’s leading light-source company, and thereby gained control of the industrial supply chain for high-output EUV light-source technology.
The United States used technology export controls to block exports to China of EUV lithography equipment, which is manufactured exclusively by Dutch company ASML.
EUV lithography equipment is considered essential for producing advanced semiconductors at 7 nanometers (nm, one-billionth of a meter) or below, and export controls on the equipment are seen as a major obstacle to the development of China’s semiconductor industry. 

[email protected] Lee Seok-woo, International Affairs Specialist Reporter