China has moved a domestically engineered immersion DUV lithography system into production as the United States blocks imports of new Chinese robot models, widening a technology confrontation that now stretches from chipmaking equipment to advanced machines.
Shanghai Aishengna Electronic Technology Group is overseeing the program after bringing together personnel from several Chinese lithography ventures, as Beijing steps up efforts to localize advanced chip equipment, Reuters reported on July 28, citing a person familiar with the initiative.
The move strengthens China’s long-running effort to reduce dependence on overseas suppliers. However, the new platform is still not considered a near-term rival to machines built by ASML. The Dutch group remains the dominant global supplier of DUV systems, while Aishengna’s equipment is understood to be undergoing additional validation and remains behind established products in capability and consistency.
Despite its early stage, a functional domestic system could give Chinese chipmakers a strategically important alternative if Western governments tighten restrictions on equipment sales, spare parts, maintenance or technical support.
First details pointed to a cautious rollout
An earlier report published on July 27 revealed that a state-supported Chinese manufacturer had started building immersion DUV tools, though it did not disclose the company’s identity.
That account suggested the rollout would begin on a narrow scale, with roughly five systems planned for 2026 and output potentially rising to about 20 machines in 2027. It also indicated that the equipment would need more testing before production could expand meaningfully.
Beijing is also pursuing its own EUV platform, although that project is still believed to be in the prototype phase.
China and the U.S. move to secure chipmaking at home
China’s push to build its own lithography systems reflects a wider effort by major economies to secure more of the semiconductor supply chain within their borders, even when they continue to rely on foreign technology providers.
In New York, the first major sections of ASML’s next-generation High-NA EUV system have arrived at the Albany NanoTech Complex, starting the installation of what officials describe as North America’s first broadly accessible research center built around the advanced tool.
The facility, operated by NY Creates, is supported by a $1 billion state commitment and is expected to attract about $9 billion in private-sector investment. Further parts of the system are due to reach Albany during the summer, with installation continuing through 2026 and research activity scheduled to begin in early 2027.
Unlike China’s domestically developed DUV program, the Albany project relies on equipment supplied by the Netherlands-based ASML. Its strategic purpose, however, is similar: to give local companies, researchers and universities closer access to technology that will shape future generations of chips.
The machine, which weighs more than 200 tonnes, will support work on denser circuit patterns, process development and device scaling. Researchers are expected to explore technologies below the one-nanometer level, although moving such designs into commercial manufacturing would require further investment and development.
The ASML platform will operate alongside equipment delivered by Japan’s Tokyo Electron, strengthening Albany’s role as a shared research base for semiconductor companies and academic institutions.
AI race shifts from competition to confrontation
Efforts by China and the United States to strengthen their technology industries at home have unfolded alongside an increasingly hostile battle over how each side is advancing in artificial intelligence.
Beijing accused Washington of pursuing “AI hegemonism” after U.S. officials raised the possibility of investigations, sanctions and trade restrictions against Chinese developers suspected of using American frontier models to accelerate their own systems. China’s Commerce Ministry rejected those allegations as lacking a sufficient factual and legal basis and warned that it would respond to measures that damaged Chinese interests.
The dispute intensified after White House technology adviser Michael Kratsios accused Moonshot AI of using Anthropic’s Claude Fable 5 while building its Kimi K3 model through large-scale distillation.
Beijing countered that Chinese systems had made independent gains, including in coding, while arguing that American developers had also drawn on Chinese models.
Washington extends technology curbs to robots
The Trump administration widened its technology restrictions on Tuesday, blocking new Chinese humanoid and four-legged robots as well as connected power inverters from entering the U.S. market, extending the rivalry beyond chips and AI models into the physical systems expected to support future data centers.
The Federal Communications Commission added the equipment to its restricted list, arguing that foreign-controlled devices could expose critical infrastructure to supply disruptions, data theft, remote interference and cyberattacks.
The restrictions apply to models that have not yet received authorization, although the FCC can also withdraw approval from products already cleared for sale.
The policy underscores a key difference between the two countries’ strategies. China is attempting to replace foreign technology with equipment developed at home, while Washington is combining domestic investment with regulatory barriers designed to remove Chinese hardware from strategically sensitive markets.
