KEY POINTS
- China's Shanghai Aishengna Electronic Technology Group has begun producing domestic immersion DUV lithography machines for major Chinese chipmakers, pressuring semiconductor stocks.
- While domestic immersion DUV offers Beijing a modest buffer against Western sanctions, mastering DUV does not bridge the decade-long gap to EUV technology required for advanced AI chips.
- China's lithography progress comes against a history of industrial espionage targeting ASML.
