Breaking Monopolies: Shanghai Micro Electronics’ EUV Patent Signals Progress in Chinese Chip Making Amid US Sanctions

Advancements in Chinese chip production are evident with a new EUV patent from the local lithography leader. Although the patent from Shanghai Micro Electronics Equipment is still being evaluated, the manufacturing of EUV tools within China could disrupt ASML's monopoly.

A recently disclosed patent from Shanghai Micro Electronics Equipment (SMEE), a Chinese lithography system manufacturer, illustrates how homegrown companies might advance in the local high-tech lithography tools sector, even with US sanctions in place.

The patent for "extreme ultraviolet [EUV] radiation generators and lithography equipment", submitted in March 2023, was made public on Tuesday and is currently under review by the China National Intellectual Property Administration, as per the information from the business registration site, Qichacha.

The patent illustrates the advancements made by SMEE in EUV lithography, a recognized weak point in China's semiconductor industry. Despite numerous years of trying, SMEE continues to trail ASML in the dependably large-scale production of lithography equipment suitable for operations at the 28-nanometre level and lower.

ASML, a company based in the Netherlands, currently dominates the market for EUV machines. Since 2019, they have faced restrictions on shipping this equipment to China.

In December 2022, the US Department of Commerce included SMEE and 35 other Chinese firms in a blacklist. This action limited their capacity to import specific US technologies.