Good news emerges in chip technology—ASML's lithography machines have been fully delivered, putting Chinese companies on track to become the world's third-largest player.

A few days ago, I was chatting with a friend who works in the semiconductor industry. His face lit up with excitement as he shared, "Over the past two years, our company’s order volume has grown by nearly 50%—so much so that our production capacity simply can’t keep up!" Hearing this, I instantly became intrigued and asked, "Is it because the new lithography machines have finally arrived?" My friend nodded and replied, "Exactly—after upgrading our equipment, we’re now able to produce many chip designs that were impossible to make before."

This news is incredibly exciting to me. After all, chip manufacturing is an industry with extremely high technological barriers, and lithography machines are the most critical—and also the most expensive—equipment in the entire process, often referred to as "the crown jewel of semiconductor equipment." For years, domestic companies have been working tirelessly to close the gap with global leaders, and now, finally, they’ve received some fantastic news.

According to the "2025 Global Semiconductor Equipment Market Analysis Report," as of June 2025, the global semiconductor equipment market reached $128 billion, representing a year-on-year growth of 15.6%. Notably, mainland China's investment in semiconductor equipment surged to $33.5 billion, accounting for 26.2% of the global total—and marking its third consecutive year as the world's largest market. These figures underscore the rapid rise of China's chip industry on the global stage.

Even more excitingly, ASML's advanced lithography machines have been arriving one after another, providing robust support for Chinese chip companies' technological breakthroughs. What does the arrival of these lithography machines signify? And why has it sparked such a strong reaction within the industry? Could Chinese chip firms truly rise to become global leaders in the future? With these questions in mind, I delved into the latest developments in the semiconductor sector.
First, we need to understand the critical role of lithography machines in chip manufacturing. Simply put, a lithography machine acts as the "printer" in chip production—it precisely projects circuit patterns onto silicon wafers, creating the intricate circuit structures that define the chip. The precision of the lithography machine directly determines the chip’s process node, which in turn influences the chip’s performance, power consumption, and cost.

Currently, the world's most advanced lithography machine is the extreme ultraviolet lithography (EUV) system produced by the Dutch company ASML, capable of enabling chip manufacturing processes below 3 nanometers. To put it in perspective, a nanometer is one billionth of a meter—roughly equivalent to one-hundred-thousandth the diameter of a human hair. Achieving such precision at these minuscule scales is undeniably one of the greatest engineering challenges imaginable.

ASML's lithography machines are not only technologically advanced but also incredibly expensive. It is reported that the latest model of EUV lithography machine costs over $300 million—roughly the price of a Boeing 787 passenger jet. Moreover, these devices have lengthy delivery times, typically taking 1 to 2 years. As a result, securing access to cutting-edge lithography equipment has become one of the critical factors determining a country's ability to develop its chip industry.

In recent years, as global technological competition has intensified, the supply of advanced lithography machines has become a focal issue. Fortunately, according to the latest reports, ASML has already begun delivering a new batch of lithography machines to Chinese customers. The "2025 China Semiconductor Equipment Procurement Report" reveals that from the second half of 2024 to the first half of 2025, Chinese companies collectively purchased 62 ASML lithography machines, including 7 high-end models.

What does the arrival of these devices mean for China's chip companies? Simply put, it represents a significant boost in technological capability.

Previously, limited by available equipment, many Chinese chip companies could only produce chips at or above 28 nanometers, failing to meet the demands of high-end markets. However, with the advent of the new-generation lithography machines, these companies are now poised to achieve mass production using 14-nanometer and even more advanced processes. This breakthrough will enable them to manufacture chips with superior performance and lower power consumption, perfectly catering to industries such as smartphones, artificial intelligence, and autonomous driving.

Let’s look at the latest data: According to the "Global Ranking of Chip Manufacturers for Q2 2025," China's SMIC has risen to sixth place worldwide, with revenue growing 36.7% year-on-year. Meanwhile, industry forecasts suggest that by the end of 2025, SMIC could break into the global top five. Over the next three years, at least one or two Chinese companies are expected to climb into the global top three.

This rapid rise has been fueled not only by the support of critical equipment like lithography machines but also by China’s robust, fully integrated industrial chain and its massive domestic market demand. According to statistics, China’s integrated circuit market is expected to surpass 2.5 trillion RMB by 2025, accounting for more than 40% of the global market. Such a sizable market naturally attracts substantial investment and talent from around the world.

When it comes to talent, this is also one of the key factors driving the rapid growth of China’s chip industry. According to the "2025 China Semiconductor Talent Development Report," China’s semiconductor sector currently employs over 800,000 professionals, among whom 42% hold master’s degrees or higher—representing a 15-percentage-point increase compared to five years ago. The steady influx of highly qualified talent is injecting strong momentum into the industry’s development.

My friend is one of them. He returned to China from studying abroad in 2018 and joined a chip-design company. "When I first came back, there was definitely a gap between China's chip-design capabilities and those overseas—but over the past few years, progress has been incredibly rapid," he shared with me. "Now, in certain specialized areas, the chips we design can already match the performance of top-tier international products."

In addition to talent, financial investment is also a key driver of industry development. According to incomplete statistics, from 2020 to 2025, China’s semiconductor industry attracted total investments exceeding 1.5 trillion RMB. These funds primarily came from three sources: government-guided funds, investments by large corporations, and private capital.

The National Integrated Circuit Industry Investment Fund (Phase III), established at the end of 2024, has reached a scale of 300 billion RMB, with its primary investments directed toward critical sectors such as chip design, manufacturing, packaging and testing, as well as equipment and materials. The infusion of these funds has significantly accelerated industrial upgrades and driven breakthroughs in key technologies.

In terms of market demand, with the rapid advancement of emerging technologies such as 5G, artificial intelligence, the Internet of Things, and autonomous driving, the need for chips is experiencing explosive growth. According to the "2025 China Chip Demand Forecast Report," China's smartphone chip demand is expected to reach 480 million units by 2025, while AI chip demand will surge to 120 million units. Meanwhile, automotive chip demand is projected to hit a value of 150 billion RMB during the same period.

Driven by massive market demand and continuous technological breakthroughs, Chinese chip companies are now witnessing unprecedented growth opportunities. However, these opportunities coexist with significant challenges—as China’s chip industry accelerates its development, it also faces several pressing issues that urgently need to be addressed.

First is the issue of the technology gap. Although China now has access to ASML lithography machines, Chinese companies still lag behind international leaders in areas such as chip design, manufacturing processes, and materials. This gap is particularly pronounced when it comes to the most advanced 3-nanometer and smaller process technologies.

Second, there’s the issue of supply chain collaboration. The chip industry has a long and complex supply chain with numerous links, making upstream-downstream coordination absolutely critical. Currently, China still lacks sufficient autonomy and control in upstream areas such as equipment and materials, which to some extent is holding back the industry’s overall growth.

Third, there’s the issue of talent structure. While the overall number of talents is growing, there remains a relative shortage of high-end talent—particularly seasoned engineers and scientists with extensive hands-on experience.

Facing these challenges, Chinese chip companies are actively responding. In terms of technology, they are accelerating breakthroughs in key areas by combining independent R&D with international collaboration. On the industrial chain front, they’re fostering collaborative innovation across the upstream and downstream sectors to enhance overall competitiveness. And in terms of talent, they’re continuously refining their human resource structure by simultaneously cultivating and attracting top expertise.

At the beginning of 2025, China's Semiconductor Industry Association released the "China Integrated Circuit Industry Technology Roadmap (2025–2030)," which outlines the goal of achieving mass production of 5-nanometer chip manufacturing processes by 2030. Additionally, the roadmap aims for domestic manufacturers to achieve a localization rate of over 50% for critical equipment and more than 60% for key materials. Accomplishing these targets will significantly enhance the global competitiveness of China's semiconductor industry.

From a global perspective, the rise of China's chip companies is reshaping the global semiconductor industry landscape. Traditionally, the industry has followed a division of labor model—“U.S. design, manufacturing in South Korea and Taiwan, and Japanese materials.” However, with the rapid growth of Chinese firms, this established structure is now undergoing significant transformation.

According to the "2025 Global Semiconductor Industry Chain Analysis Report," by 2025, China will hold a 23.5% share of the global chip design market, a 17.8% share in manufacturing, and a 36.2% share in packaging and testing. This signifies that China has already emerged as a significant and increasingly influential player in the global semiconductor industry.

Looking at specific companies, SMIC and HuaHong Semiconductor are rapidly rising in the manufacturing sector; Unisoc and Bitmain have emerged as standout players in the design space; Changchuan Technology and AMEC are steadily closing the gap in the equipment industry; and Shanghai Xincheng and Anji Technology continue to make significant breakthroughs in the materials field. The growth of these companies is reshaping the global semiconductor industry's competitive landscape.

Notably, Chinese chip companies have already begun to take the lead in certain niche segments. For instance, in areas such as power management chips, fingerprint recognition chips, and Bluetooth chips, Chinese firms now boast global competitiveness. Additionally, they’ve achieved significant breakthroughs in fields like AI chips and storage chips.

My friend shared an interesting example: their company’s newly designed AI chip outperforms similar foreign products by 30%, yet it consumes 25% less power. Since its launch, the chip has been enthusiastically embraced by the market and is already being adopted by several well-known smartphone manufacturers.

"Before, we were always chasing after others, but now we’ve actually started taking the lead in certain areas," my friend said proudly. "It really feels different this time."

Indeed, from catching up to keeping pace—and even taking the lead in certain areas—China's chip industry is undergoing an exhilarating transformation. And with ASML lithography machines now fully in place, this shift has undoubtedly gained significant momentum.

So, can China's chip companies truly rise to become one of the global top three in the future? Judging from current development trends, this goal appears well within reach. According to the "2025 Global Semiconductor Industry Development Trends Report," by 2028, 1 to 2 Chinese companies are expected to break into the global top three in semiconductor revenue, with their market share potentially reaching over 15%.

Of course, achieving this goal won’t be easy—it will require continuous technological innovation, collaborative efforts across the industry chain, and robust talent development. Especially in today’s context of increasingly fierce global tech competition, Chinese chip companies need to place greater emphasis on independent innovation to build their core competitive edge.

In the long run, China's chip industry still needs a more open and inclusive approach to thrive. The semiconductor industry is inherently global—no single country or region can independently handle every stage of the process. Only through international collaboration can we achieve mutual benefits and shared success.

As my friend put it: "We’re not here to replace anyone—but rather to work alongside our global peers, driving the growth of the entire industry and contributing to humanity’s advancement in science and technology."

This philosophy of open collaboration is precisely the foundation for the healthy development of China's chip industry. In fact, many Chinese chip companies are already actively seeking global partners to jointly drive technological innovation and expand into new markets.

Ultimately, the chip industry is a field that demands long-term investment and continuous accumulation—it simply can’t happen overnight. Just as Rome wasn’t built in a day, China’s rise in the chip industry will also require time and patience.

Fortunately, we’re already seeing signs of hope. The full arrival of ASML lithography machines marks a significant milestone in China’s chip industry development. Looking ahead, as technology continues to advance and the industry ecosystem keeps improving, Chinese chip companies are poised to play an even more prominent role on the global stage.

Returning to my friend mentioned at the beginning of the article, he recently shared another piece of great news: their company is now preparing for an IPO, with its valuation already surpassing 30 billion RMB. "Five years ago, this would have been unthinkable," he said, "as the entire industry is booming—and there are countless opportunities emerging all around us."

Absolutely, there are plenty of opportunities—not just for businesses, but for individuals as well. According to statistics, by 2025, the average salary in China’s semiconductor industry had already reached 250,000 yuan per year, nearly a 40% increase compared to five years ago. Such high salaries are also drawing more and more young people to join this thriving sector.

My other university classmate’s son just graduated this year from Shanghai Jiao Tong University with a degree in Microelectronics—and right after graduation, he received offers from several leading chip companies, with the highest salary reaching 350,000 yuan annually. "Back in our day, we could never have imagined this," my classmate remarked wistfully. "But now that the country places such strong emphasis on the chip industry, young people truly have more opportunities than ever before."

From national strategies to corporate growth and individual opportunities, the rise of China's chip industry is already reshaping every aspect of society. And with ASML’s lithography machines now fully in place, this upward trajectory has gained even more momentum.

In the future, as more advanced equipment is introduced and China's independent R&D capabilities continue to strengthen, Chinese chip companies are poised to achieve breakthroughs in an even wider range of fields, firmly positioning themselves among the global leaders. This not only hinges on industrial growth but also on technological self-reliance, economic security, and the nation's long-term prosperity.

As everyday consumers, we may not immediately notice the changes in chip technology—but in reality, these advancements have already become deeply embedded in every aspect of our lives. From smartphones to home appliances, from cars to medical devices, chips are everywhere. The rise of China’s chip industry means we’ll soon be able to enjoy better products and smarter services.

Meanwhile, the growth of the chip industry has also created vast employment and entrepreneurial opportunities for young people. If you’re passionate about technology, why not consider joining this dynamic field and becoming a driving force behind China’s rising chip industry?

With ASML lithography machines fully in place and China's growing capacity for independent innovation, the country's chip industry is now embracing unprecedented growth opportunities. While challenges remain, the future looks promising. We can confidently expect that, in the near future, more Chinese chip companies will rise onto the global stage, contributing Chinese ingenuity to the advancement of technology worldwide.

Remember the friend I mentioned earlier? He recently told me their company is developing a brand-new AI chip that will deliver performance more than double that of current products. "In the past, we were always playing catch-up by imitating others, but now we're starting to lead in certain tech directions," he said excitedly. "This is exactly the kind of change I’ve been waiting for."

Yes, from catching up to leading—this is precisely the transformation the Chinese chip industry is currently undergoing. Behind this shift lies the relentless dedication of countless companies and individuals, as well as a nation’s unwavering commitment to advancing science and technology through innovation.

What’s your take on the growth prospects of China’s chip industry? Feel free to share your opinions and thoughts in the comments section. And if you’re a professional working in the semiconductor industry, we’d love to hear about your firsthand experiences and expert insights as well. Let’s stay tuned to this critical sector that plays a vital role in shaping our nation’s future!

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