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Core Equipment for Advanced Semiconductors: EUV Lithography Machines
ASML’s Secret Lies in Tier 1 Partner Collaboration
Expertise in Managing Special Component Supply Is Key

China is investing enormous resources to domestically develop extreme ultraviolet (EUV) lithography machines, which are essential equipment for advanced semiconductor manufacturing. However, it is reported that there are still many challenges before China can catch up with ASML, the industry-leading company from the Netherlands. The key issue lies in the ultra-precision components that ASML sources from advanced industrial nations such as the United States and Europe. ASML’s true competitive edge comes from decades of joint component development with its partner companies.

China’s Dream of Lithography Independence

Prototype of Chinese extreme ultraviolet (EUV) lithography machine. TikTok capture

According to foreign media reports, China is developing EUV lithography machines, with IT companies like Huawei at the forefront. In pursuit of self-sufficiency, China has reportedly engaged in smuggling used ASML lithography machines for reverse engineering, and has recruited former ASML researchers with multi-million dollar salaries. The EUV lithography machine is equipment that etches intricate circuit patterns onto semiconductor wafers, and is absolutely necessary for producing semiconductors using advanced processes below 10 nanometers (nm). Currently, China is unable to import cutting-edge ASML EUV lithography machines due to export restrictions imposed by the United States and the Netherlands.

Nevertheless, despite China’s efforts, the performance of Chinese-made EUV lithography machines is said to be significantly lacking. A researcher involved in the project told foreign media that this is "because there is no ultra-precision optical equipment." Optical equipment is a core component of lithography machines, but ASML does not manufacture these parts itself. Instead, it jointly develops and utilizes them with hundreds of partner companies spread across the United States and Europe.

More Than 200 Tier 1 Partners Producing Core Components

ASML maintains close cooperative relationships with more than 200 'Tier 1 partners' who supply irreplaceable core components. The photo shows the supplier event hosted annually by ASML. Photo by ASML

Lithography machines use light to engrave nanometer-scale circuit patterns onto the surface of semiconductor wafers. The name "EUV lithography machine" comes from its use of extreme ultraviolet light as a light source. EUV is such a fine light that it easily bends or disperses in air. For this reason, special components are needed to concentrate the light. These components together form the ultra-precision optical equipment.

Companies that supply ultra-precision optical equipment to ASML are classified as Tier 1 partners. ASML has established exclusive cooperative relationships with these companies. According to Bloomberg, there are currently more than 200 Tier 1 partners. These include Zeiss, which manufactures ultra-precision mirrors that reflect EUV light; Trumpf Laser and Cymer, which supply light source equipment; and Renishaw, which produces encoders and motors that adjust wafer positions with accuracy down to 1-2 nm.

Engineers at Renishaw, a British precision instrument manufacturer, experimenting with the RLE20 encoder. Renishaw

Each component supplied by these partners is the culmination of decades of scientific and technological research. Zeiss’s ASML-specification mirrors are reportedly protected by more than 2,000 patents. Renishaw’s "RLE20" encoder is a component that detects distances as small as the thickness of an atom to coordinate the movements of wafer adjustment devices, and was jointly developed by ASML and Renishaw engineers from 2018 to 2019. Even now, it is produced exclusively for ASML.

“ASML as the Conductor of Its Suppliers”

The EUV lithography machine is not solely a product of ASML’s own technology, but rather a culmination of American and European scientific and technological achievements accumulated over decades. Without establishing a cooperative system with numerous specialized technology companies like ASML has, it is nearly impossible to manufacture top-tier lithography machines.

Zeiss mirror that reflects extreme ultraviolet light without loss. ASML

Experts also point out that the limitations of Chinese lithography machines stem not from manufacturing capability, but from inadequate global partnerships. Last month, TrendForce, a semiconductor market research firm in Taiwan, stated, "ASML’s achievements were only possible thanks to cooperation with key partners," and added, "ASML does not manufacture the entire EUV lithography machine itself. ASML’s role is more akin to that of an orchestra conductor, coordinating a network of hundreds of suppliers that provide optical devices, light sources, and core modules."

They went on to say, "Even if China were to acquire and imitate an ASML EUV lithography machine, it would be like trying to perform a symphony by only reading the sheet music. A symphony played without decades of conducting practice would lack any vitality. This is at least one reason why it will be difficult for Chinese companies to catch up with ASML in the near future."