US chip curbs could accelerate China’s domestic chipmaking drive, analysts warn

A Shanghai-backed firm has started producing a small number of immersion DUV lithography machines, with early use expected at major Chinese chipmakers.

Analysts say making a few systems is easier than proving they can run reliably at factory scale, so ASML still holds the lead in advanced lithography.

Chinese fabs will likely keep using ASML equipment where they can, while U.S. restrictions could accelerate demand for domestic alternatives.

A proposed U.S. MATCH Act would further limit sales and servicing of such systems, adding pressure on China’s semiconductor equipment push.