Chinese memory chipmakers CXMT and YMTC have quietly stockpiled enough ASML lithography systems to sustain their aggressive production expansion plans for the next three years, according to a Financial Times report citing multiple sources.
YMTC, China's largest NAND flash manufacturer with a 14% global market share, aims to double production and become the world's leading NAND flash maker. CXMT, which produces DRAM including DDR5 and LPDDR6 memory with roughly a 10% global share, has similar growth ambitions.
ASML is permitted to sell only older deep ultraviolet (DUV) lithography systems to China under export restrictions — modern extreme ultraviolet (EUV) systems remain off-limits. The company's Twinscan NXT:1980Di, a 2015-era DUV system, costs up to €60 million per unit. In the past four quarters alone, ASML delivered approximately €7.2 billion worth of lithography systems to China, following periods where quarterly shipments exceeded €2 billion.
The stockpiling strategy is a hedge against tightening export controls. ASML is already barred from selling newer DUV generations to China, which would help Chinese fabs overcome the multi-patterning limitations they face with older systems. Chinese chipmakers are not benefiting from DUV improvements that enable faster wafer exposure and atomic-level alignment.
Huawei is meanwhile leading efforts to build domestic lithography alternatives. Reports indicate that Aishengna and Yuliangsheng were originally expected to produce five DUV systems this year, but that target has reportedly risen to twelve. However, Chinese fabs including SMIC remain hesitant to adopt local equipment, and full certification could take years. Chinese alternatives still rely on foreign components for optical elements and lasers, with Zeiss optics and Gigaphoton lasers among the dependencies.
The accumulation signals that Chinese chipmakers are preparing for a future in which access to Western semiconductor equipment becomes increasingly restricted, investing heavily now while older DUV systems remain available for purchase.
