Core Insights - The report from Guohai Securities highlights a significant gap between China's lithography technology and the global advanced level, with the third phase of the National Integrated Circuit Industry Investment Fund focusing on supporting domestic enterprises and key technological bottlenecks [1] - The lithography machine is identified as a core device in chip manufacturing, with critical indicators including resolution, depth of focus, overlay accuracy, and yield [1] - The report recommends focusing on core components and processing equipment related to lithography machines, including light sources, illumination, objectives, and worktables [1] Industry Overview - The lithography industry has key barriers related to core components, which include light sources, illumination, objectives, worktables, and alignment systems, with EUV lithography machines having distinct characteristics [2] - The global lithography machine market is projected to reach $29.37 billion by 2025, with specific market sizes for illumination + objectives, light sources, worktables, and other components estimated at $4.78 billion, $2.86 billion, $2.15 billion, and $4.52 billion respectively [2] - The EUV lithography machine market is expected to reach $9.6 billion by 2025, with its components' market sizes estimated at $1.55 billion, $1.26 billion, $0.70 billion, and $1.15 billion for illumination + objectives, light sources, worktables, and other components respectively [2] Competitive Landscape - The success of ASML in the lithography machine market is attributed to technological innovation and industry collaboration, with a global supply chain involving key partners such as Zeiss, Cymer, Gigaphoton, TRUMPF, and Leibao [3] - ASML's acquisition of Cymer, a leader in the global lithography light source market, underscores the importance of strategic partnerships in the industry [3]