China's Semiconductor Makers Unite In Call To 'Build China's ASML'

Core Viewpoint - China's semiconductor executives are advocating for a coordinated national effort to develop a domestic alternative to ASML, particularly in light of increasing U.S. restrictions on advanced chip manufacturing tools [1][3]. Group 1: Domestic EUV Ecosystem - Executives from major companies like SMIC, Empyrean, YMTC, and Naura Technology emphasize that China's semiconductor industry is currently too small, fragmented, and weak, which hampers the effective use of public resources and slows down progress [2]. - The call for a domestic EUV ecosystem is aimed at strengthening capabilities in electronic design automation (EDA) and wafer production, with efforts expected to continue through the 15th Five-Year Plan, which concludes in 2030 [4]. Group 2: Industry Fragmentation - The semiconductor industry in China is characterized by significant fragmentation, with over 100 EDA developers, approximately 3,600 chip designers, and more than 180 wafer-equipment companies, indicating a pressing need for enhanced collaboration and consolidation within the sector [5]. Group 3: U.S. Restrictions Impact - U.S. restrictions have specifically targeted three critical areas of China's semiconductor industry: EDA tools for chip design, silicon wafers, and manufacturing equipment, particularly extreme ultraviolet (EUV) lithography, which is exclusively controlled by ASML and cannot be exported to China [3].