Center for Technology & Statecraft: Chinese fabs had acquired ~343 DUVi tools by early 2026, with ~270 from ASML; DUVi can be adapted to make 7nm chips and HBM

Export controls now face a loophole allowing critical chipmaking equipment to reach China.

Chinese semiconductor manufacturers acquired approximately 343 immersion deep ultraviolet (DUV) lithography systems by early 2026, with a significant portion, around 270 units, sourced from ASML. These DUVi tools, notably ASML's Twinscan NXT:1980i models, are capable of producing advanced chips, including 7-nanometer class logic chips and high-bandwidth memory (HBM) crucial for AI processors. Chinese fabs reportedly spent over $13 billion on these machines in 2024 and 2025. ASML's financials confirm substantial sales to China during this period, though recent quarters show a moderation. The Netherlands has implemented export controls on some advanced DUV systems since September 2023, with stricter licensing for the NXT:1980i model introduced in late 2024. A research report by the Centre for Technology & Statecraft argues these controls have loopholes and advocates for a comprehensive ban on all immersion DUV equipment to China, alongside restrictions on parts and servicing.

The acquisition of 343 immersion DUV tools by Chinese fabs, a substantial portion from ASML, signifies a strategic build-up of advanced manufacturing capabilities. These tools, while not ASML's most cutting-edge EUV machines, are sufficient to produce sophisticated chips for AI, indicating China's progress in circumventing restrictions. The reported expenditure of over $13 billion in just two years highlights the scale and urgency of this acquisition spree, raising concerns among US officials about the technological parity race.

This development suggests that current export control strategies may be insufficient, with loopholes allowing for the continued supply of critical technology. The push for a complete ban on immersion DUV equipment and related services, as recommended by the Centre for Technology & Statecraft, reflects a potential escalation in tech trade wars. The debate in Washington and the introduction of legislation like the Match Act underscore the bipartisan urgency to address this perceived strategic vulnerability.