ASML Claims China’s Chip Industry Lags 15 Years Behind The West

Chinese tech firms have faced increasing challenges since the U.S. began restricting access to advanced semiconductor technologies in 2020.

ASML is transitioning to High-NA EUV lithography, potentially widening the technological gap even further. I Photo: ASML Facebook

These limitations have intensified in recent years, forcing manufacturers like SMIC to innovate within strict constraints.

Despite concerns that China might quickly bypass these barriers, the head of Dutch toolmaker ASML estimates China’s chip industry is now 10 to 15 years behind Western counterparts, Ryan Whitwam reported for Extreme Tech.

The most advanced sub-5nm silicon nodes require EUV (extreme ultraviolet) lithography tools, but Chinese chipmakers are limited to DUV (deep ultraviolet) lithography systems.

ASML, the leading manufacturer of these tools, became an early target of U.S. trade restrictions. Although ASML is based in the Netherlands, U.S. lobbying led to restrictions on what the company could sell to China starting in 2020.

Recent agreements between the U.S. and the Netherlands have further tightened these limits, making it difficult for Chinese firms to replace aging chipmaking equipment.

“By banning the export of EUV, China will lag 10 to 15 years behind the West,” ASML CEO Christophe Fouquet told Dutch publisher NRC.

Until recently, ASML was still allowed to sell DUV systems like the Twinscan NXT:2000i. Companies like SMIC have modified these tools to produce 7nm chips, with some reports suggesting 5nm production is possible.

However, these limitations have significantly hindered the performance of devices such as Huawei’s Mate 70, which relies on SMIC’s 7nm chips.

China is actively pursuing domestic versions of EUV technology, but Fouquet noted that it could take at least 10 to 15 years for China to achieve current Western capabilities. Meanwhile, ASML is transitioning to High-NA EUV lithography, potentially widening the technological gap even further.