already mass-produces its own UVP lithography machines, according to The Information

A Chinese company backed by the government led by Xi Jinping has broken one of the most resistant barriers in the semiconductor industry. According to The Informationthis company has begun to mass-produce its own immersion deep ultraviolet (UVP) lithography machines, the tool that engraves the geometric pattern of circuits on silicon wafers and that China had never produced on an industrial scale. Its objective is modest: it intends to produce five units this year aimed at SMIC (Semiconductor Manufacturing International Corporation), Hua Hong Semiconductor and CXMT (ChangXin Memory Technologies), and another twenty in 2027. International media have not yet confirmed the name of this company, although several of them claim that it resides in Shanghai (China), so it is probably Shanghai Yuliangsheng Technology, an emerging company linked to Huawei and YesCarrier. This simply means that the ecosystem of suppliers that China has been weaving around Huawei in recent years is also beginning to bear fruit in photolithography, the link that is taking the longest to master. The market has reacted immediately. ASML shares have reached drop up to 6.5% in Amsterdam just a few hours ago, and Applied Materials, Lam Research and KLA Corp left between 4% and 7% in that same session. It is no surprise: any significant advance by China in lithography is perceived on Wall Street as a direct threat to ASML’s business in this Asian country, which, surprisingly, continues to be an important source of income for this Dutch company despite the fact that US and Netherlands sanctions They prevent it from selling its most advanced machines there. China is still a generation behind SMIC, China’s largest semiconductor manufacturer, has been testing a Yuliangsheng tool since September 2025. That machine has been designed for 28nm integration processes, although with multipatterning advanced could reach 7nm nodes or even more sophisticated. SMIC has set 2027 as the date for mass production of these machines. However, Yuliangsheng is not alone: ​​SMEE (Shanghai Micro Electronics Equipment), another Chinese manufacturer of lithography equipment, has already sold about ten units of its SSA800 series, which is also focused on 28 nm immersion UVP photolithography. These new machines mainly incorporate Chinese components, although some critical parts still depend on Japanese suppliers. These new machines incorporate mostly Chinese components, although some critical parts still rely on Japanese suppliers, and presumably lag behind ASML equipment in performance and manufacturing quality. On the other hand, we must not overlook that this technical gap can trigger months of qualification tests before the equipment actually enters the large scale production lines. In this context, an independent analysis of AI Futures Project published in June has put Chinese production of commercial-scale UVP dipping machines into the mid-2030s. Meanwhile, ASML continues to control the 98.7% of the market. This last company, in fact, plans to deliver to its customers about 130 UVP immersion equipment in 2026, a volume similar to that of 2025, as explained its chief financial officer, Roger Dassen, at the July earnings call. This figure makes clear the real magnitude of the distance that separates China and ASML: this Asian country aims to manufacture twenty UVP units in 2027, while the Dutch company will deliver that quantity in just under two months. The geopolitical context, in any case, does not help reduce tension. The US is considering imposing even stricter restrictions on the export and maintenance of lithography equipment that reaches China through the MATCH lawwhose limitations would reach even machines already installed in Chinese factories. In parallel, the Chinese Government continues to develop its own extreme ultraviolet lithography (UVE), although this project is presumably still in the prototype phase, and, according to analysts, it is still several years of producing a commercial chip. Image | ASML More information | The Information In Xataka | TSMC raises its bet in the US: there are already 265,000 million dollars for 2 nm

China already mass-produces the strongest carbon fiber in the world. And that changes the rules in defense, aeronautics and energy

For decades, access to the world’s highest-performance composite materials has been a privilege of a few countries. For high-performance carbon fiber, Japan and the United States have controlled that market with a combination of technological advantage and export frameworks explicitly designed to keep China out. Last March we saw that this balance had changed, as the Chinese state group CNBM (China National Building Material Group) presented in Paris the world’s first mass production of T1200 grade carbon fiberthe highest step on the tensile strength scale of this material. What is the T1200. As we explained a while ago, in the world of carbon fiber, the letter T followed by a number is a direct resistance classification. The higher the number, the more force the material can withstand before breaking. T1200 exceeds 8 gigapascals (GPa) of tensile strength, making it about ten times stronger than conventional steel, with a density that is just one quarter of that of steel and with a filament diameter less than one tenth of a human hair. According to counted CCTV, a cable just over two millimeters thick, made up of 120,000 of these filaments, is capable of towing a bus full of 54 passengers. More companies join this fiber. China showed its prowess at the JEC World in Paris, but the industries have already gotten up and running. At the end of April, PetroChina announced the inauguration of its first carbon fiber project high-performance in the city of Jilin, with an investment of approximately 1.3 billion yuan (about 180 million dollars). It is relevant because it is no longer just CNBM, as the state energy giant enters the sector taking advantage of its dominance in the supply chain. Zhongfu Shenying, a subsidiary of CNBM, for its part, has commissioned additional production a new 10,000 ton plant standard fiber metrics. China’s idea is to build an industrial ecosystem from the top down, including mastering high-performance carbon fiber production techniques. China had not been able to manufacture it for decades. High performance carbon fiber has been on dual technology lists for decades use of the Wassenaar Agreement, the multilateral export control regime created in 1996 with 42 member countries including Japan and the United States, but not China. According to the China Composites Industry Association, the Agreement restricts the export of carbon fiber of high modulus (from grade T800) to non-member countries. This means that accessing materials above that threshold required, in practice, manufacturing them at home or obtaining them through alternative means. China did not have its first T300 until 2008. From there to the T1200 it took less than twenty years. It has taken Japan 43 to travel that same path. How China has accelerated so much. The model that has been repeated many other times and in other sectors: state capital, research from universities and industrial capacity functioning as a coordinated ecosystem, with the same approach as China has been applied to semiconductorsbatteries or electric vehicles. In this case the protagonist is CNBM, which developed the fiber through Zhongfu Shenying Carbon Fiber. Zhou Yuxian, president of CNBM, counted in the presentation that the country has demonstrated “completely independent and controllable capabilities throughout the entire industrial chain”, from equipment to the transition from laboratory to mass production. Chen Qiufei, head of T1200 R&D at Zhongfu Shenying, added Furthermore, the new grade improves the resistance of the previous T1100 by more than 14% and allows the weight of the equipment to be reduced in the sectors where it is applied by more than 10%. Who led the market until now. Toray Industries, a Japanese company, dominates the global market with a production capacity of 29,100 tons per year. It also developed its own T1200 with 8 GPa strength, but so far has not announced a mass production line equivalent to that of CNBM. Mitsubishi Chemical, another Japanese giant, advertisement plans to double its high-performance capacity before 2027. The South Korean Hyosung Advanced Materials aims to reach 24,000 tons per year in 2028. On the other hand, on the American flank, Hexcel is defined as the main supplier of carbon fiber for aerospace and United States military programs. Where is it applied? High-performance carbon fiber has been used for decades in combat aircraft, missiles, satellites and military fuselages precisely because it combines extreme strength with extreme lightness. With the T1200, things go even further. According to counted Interesting Engineering, the material could redefine the limits of fifth and sixth generation military aircraft manufacturing. In the civil sphere, commercial aeronautics already consumes around 76% of global carbon fiber, and the T1200 would allow additional structural weight reductions on platforms such as the Boeing 787 or the Airbus A350. In energy, high-pressure hydrogen tanks use carbon fiber structures to withstand pressure with the lowest possible weight. China has also pointed out applications in humanoid robotics and in the so-called “low-altitude economy” (drones, air taxis and urban air mobility). The Chinese space company Welight Technology already operates a rocket whose structure is around 90% carbon fiber composites, which reduces weight by 25 to 30% compared to equivalent metal designs. Cover image | Zhongfu Shenying In Xataka | Brazil holds one of the largest reserves of rare earths in the world. And he doesn’t want to repeat the same mistake from centuries ago

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