Semiconductor Manufacturing International Corporation is trialling a deep ultraviolet machine cobbled together by Yuliangsheng, a Shanghai start-up, according to the Financial Times.

If the box works as promised, it would mark a huge moment for Beijing’s techno-nationalist push to dodge US export bans, cut back on imported kit and boost AI chip output.

Bernstein semiconductor analyst Lin Qingyuan said: “If successful, it would represent an important step for Chinese companies, which could build on this breakthrough for more advanced machinery.”

Up to now, SMIC and its mates have had to rely on pricey boxes from ASML, the Dutch giant that rules lithography, but US restrictions have strangled access. Shanghai Micro Electronics Equipment can only manage less-advanced gear.

China still cannot get its paws on the crown jewels, extreme ultraviolet photolithography kit, which sort ASML peddles to TSMC and others making bleeding-edge silicon. Washington has completely banned EUV sales to China.

Yuliangsheng’s box is not entirely made in China, insiders said, though the company is scrambling to replace the foreign parts. Early trials look decent, but no one knows when this contraption will be good enough for mass production.

It normally takes at least a year of painful tweaking before new litho machines can deliver stable yields that fabs can stomach. The test rigs use immersion tech like ASML’s.

Right now, SMIC is using a 28 nanometre Chinese DUV machine and throwing in multi-patterning tricks to punch out 7nm chips, two sources said. With enough abuse, it might even grind out 5nm parts, though yields will be rubbish.

Meanwhile Taiwan Semiconductor Manufacturing Company is gearing up to churn out shiny new 2nm chips with ASML’s best EUV toys later this year. That’s the real bottleneck for China if it wants to stop Nvidia eating its lunch.

Shenzhen outfit SiCarrier, which holds shares in Yuliangsheng, is dabbling in EUV, though it’s still at the toddler stage. It even calls its project “Mount Everest” to remind everyone how far they’ve got to climb.

SiCarrier, set up in 2021, showed off a shedload of gear in March at the Shanghai Semicon Conference with names like Wuyi and Emei, taken from Chinese mountains.

The FT reported that SMIC and friends want to triple their chip output in 2026, mostly using old ASML DUV boxes hoarded before bans kicked in. Proper use of homegrown tools for mass production is unlikely before 2027.