China is escalating its semiconductor ambitions with a €37 billion investment to break Europe’s dominance in photolithography and reduce reliance on ASML. This move follows the success of Huawei’s 7nm chip and U.S. trade restrictions, pushing Beijing to develop its own lithography technology. Meanwhile, ASML continues to lead with EUV advancements, maintaining its edge in producing sub-2nm chips.

My Take

China’s €37 billion push into DUV lithography is necessary for semiconductor self-sufficiency, but it highlights the gap between catching up and leading. While this investment will strengthen China’s ability to manufacture chips at sub-10nm nodes, the lack of EUV access means it won’t help China advance beyond 7nm at scale. This investment may drive innovation in mature node manufacturing, but it ensures China remains behind at the leading edge. China’s prospects for developing EUV technology are virtually nonexistent—there are so many barriers that it would take another post to explain them all.

#Semiconductors #ChinaTech #ASML #ChipWar #TechInnovation #Geopolitics #AI #Manufacturing #TechPolicy

Link to article:

https://jasondeegan.com/chinas-e37-billion-push-to-end-europes-semiconductor-dominance-shakes-global-markets/#

Credit: Jason Deegan

This post reflects my own thoughts and analysis, whether informed by media reports, personal insights, or professional experience. While enhanced with AI assistance, it has been thoroughly reviewed and edited to ensure clarity and relevance.