China Begins Mass Production of Homegrown DUV Chip Tools

A Chinese state-backed company has begun manufacturing one of the key pieces of equipment used in chip manufacturing for the first time, a significant development in Beijing’s drive to reduce its reliance on foreign technology to make chips.

The Shanghai-based company is making immersion deep ultraviolet lithography machines, used by chipmakers such as Taiwan Semiconductor Manufacturing Co. in the production of chips, according to two people familiar with the situation.