Core Insights - The semiconductor lithography machine sector is experiencing significant market interest, particularly in the domestic industry chain, with notable stock price movements in related companies [1][2] - Shanghai Micro Electronics Equipment (SMEE) showcased its extreme ultraviolet (EUV) lithography machine at the China International Industry Fair, marking a pivotal moment for domestic technology [1][2] - The market for lithography machines in mainland China is vast but heavily reliant on imports from countries like the Netherlands and Japan, highlighting the need for self-sufficiency amid export control challenges [2][7] Company Developments - Zhangjiang Hi-Tech (600895.SH) reached a historical stock price high, with significant gains observed in other related companies such as Jiangfeng Electronics (300666.SZ) and United Chemical (301209.SZ) [1] - Jiangfeng Electronics has entered mass production of a core cooling component for lithography machines, targeting the 28nm process node, indicating a move into critical areas of lithography equipment [2][5] - SMEE is currently the only domestic lithography machine manufacturer, holding over 80% of the domestic market share and capable of producing machines for 90nm and below [5][6] Market Dynamics - ASML dominates the global lithography machine market, holding over 80% market share, with a reported net sales of €7.7 billion and a net profit of €2.3 billion in Q2 2025 [3][4] - The domestic lithography machine industry is still significantly behind international leaders, with a current localization rate of only 2.5% [5][11] - The industry faces challenges in technology and supply chain issues, necessitating collaboration across the domestic supply chain to overcome these barriers [7][11] Technological Landscape - The lithography machine market is categorized into five generations, with EUV being a key focus for future development [3][4] - Domestic companies are making strides in various technical fields related to lithography, including laser sources and optical systems, indicating a growing capability in the sector [9][10] - The industry is characterized by high barriers to entry and significant capital requirements, necessitating a coordinated national effort for advancement [11]

Core Viewpoint - The semiconductor manufacturing sector, particularly the lithography machine segment, is experiencing significant market interest and activity, especially with domestic companies gaining traction in the A-share market [1][2]. Industry Dynamics - The recent surge in the semiconductor industry has led to rising expectations for price increases, driving the performance of lithography machine stocks [2]. - Major players in the lithography machine concept, such as Zhangjiang Hi-Tech (600895.SH), have seen substantial stock price increases, with Zhangjiang Hi-Tech hitting a historical high [2]. - The domestic lithography machine market is largely dependent on imports from countries like the Netherlands and Japan, indicating a significant opportunity for local manufacturers [2][4]. Company Developments - Shanghai Micro Electronics (SMEE) has showcased its extreme ultraviolet (EUV) lithography machine at the China International Industry Fair, marking a significant step in domestic technology disclosure [1]. - Zhangjiang Hi-Tech has invested approximately 22.345 million yuan in Shanghai Micro Electronics, holding a 10.779% stake [2]. - Jiangfeng Electronics (300666.SZ) is providing critical materials for lithography processes and has entered mass production for core cooling components used in lithography machines [2]. Market Structure - The global lithography machine market is dominated by ASML, which holds over 80% market share, particularly in the high-end EUV segment [5][6]. - Domestic lithography machine manufacturers, led by Shanghai Micro Electronics, currently have a low domestic market penetration rate of 2.5% [7]. - Shanghai Micro Electronics is the only domestic supplier with over 80% market share in China, focusing on ArF, KrF, and i-line technologies [7]. Technological Challenges - The lithography machine industry is characterized by high barriers to entry and significant capital requirements, necessitating a coordinated effort from the state and key industry players to achieve self-sufficiency in the supply chain [13]. - Despite advancements, domestic manufacturers face challenges in technology and supply chain issues, particularly in high-end lithography machine technology [9]. Future Outlook - There is a growing expectation for breakthroughs in the domestic lithography machine industry, driven by geopolitical factors limiting access to ASML's EUV machines [8]. - The industry is seeing increased collaboration among domestic companies and research institutions to foster technological innovation and development [12].