China claims that having its own ASML is not that difficult. At the end of the day “ASML is a simple integrator”

China is advancing at a fearsome speed, but they are their own critics. A group of scientists and industry representatives has published an analysis very critical in which they describe their semiconductor industry as “small, dispersed and weak.” For these experts, the problem is that they do not have their own ASML, so they propose creating one, and the curious thing about it is precisely that: that they do not see it as difficult to do.

Not authors, authorities. Among the authors of the study are Wang Yangyuan —co-founder of SMIC— or Chen Nanxiang —director of the YMTC NAND chip manufacturer—. Both they and the rest of the participants are recognized personalities in the field of semiconductors. That makes it clear that this articlepublished in the magazine Science and Technology Review China is valuable to understand the state of this industry.

The US veto works. This article indicates that the United States has managed to contain China’s advance in three areas: electronic design automation (EDA) used in chip design, the manufacture of silicon wafers, and the creation of chip manufacturing equipment, especially those with extreme ultraviolet (UVE) photolithographic technologya segment that is absolutely dominated by the Dutch ASML and that China has not yet managed to match despite its efforts.

There are many companies, but they are too small. The study analyzes in depth the situation of the Chinese semiconductor market, which they describe as small, dispersed and weak. And to prove it they give a significant fact: there are 3,626 domestic chip design companies in China, but “the total value of the industry’s output was 646 billion yuan (approximately 91 billion dollars). In other words: the total sales of these 3,626 companies were less than the sales of NVIDIA alone.”

Smartphone chips are doing well. Of course, these experts point out that several Chinese companies have managed to reach “the world’s leading edge” in terms of chips for smartphones. They mention HiSilicon Semiconductor and Unisoc, which occupy the first and second place among the largest smartphone chip designers in China, with market shares of 20 and 10% respectively.

And the “mature” chips, too. Something similar happens with chips with much more mature technologies, such as those manufactured with 28 nm photolithography or higher. That problem is already solved in China, which does not have to depend so much on foreign manufacturers. In fact, China now represents 33% of global production in this segment, and design and manufacturing processes are not limited by internal restrictions.

Too dependent. Despite its many advances, China remains the world’s largest importer of integrated circuits. It invested $385.79 billion in 2024 in these components, even exceeding its oil imports ($324.7 billion). Here China has a big problem of dependence on chips from third-party foreign manufacturers, and this is especially noticeable in automotive chips (95% of them import) and memory chips (90%): all of them depend on imports. There is a clear bottleneck in high-end integrated circuit production.

In search of Chinese ASML. The document also addresses competition with ASML but not as a direct commercial rivalry, but as a strategic challenge of technological sovereignty. The Dutch company is described as “a simple integrator” that coordinates more than 5,000 suppliers to manage the 10,000 components of an EUV machine. The suggestion of the study is precisely to create a Chinese ASML that unifies the advances made by different companies.

But. Although progress has been made In this ambitious objective of creating SVU machines, “integrating them with a national effort is a problem that must be resolved during the 15th five-year plan” that concludes in 2030. To do this, these experts assure, there must be financial support and human personnel is required. We already knew that China I was trying to copy ASMLbut for now it is going badly. The document talks about developments such as promising Flip-FET technology (FFET) of Peking University. This advance allows us to reach 3-2 nm nodes without depending exclusively on EUV machines, but it remains to be seen if this method ends up being successful or not.

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