Huawei invests in lithography chipmaking equipment to boost domestic supply chain

Huawei is doing something most tech companies never attempt: building the machines that build the chips. The Chinese telecom giant has been investing in domestic manufacturers of deep ultraviolet (DUV) photolithography equipment, the critical tools used to etch circuit patterns onto silicon wafers, while simultaneously coordinating a sprawling network of suppliers, fabrication plants, and equipment makers to create a more self-sufficient Chinese semiconductor supply chain. The effort effectively makes Huawei the central node in China’s push to develop its own lithography capabilities, a role that analysts at Bernstein have described as “project manager” for the country’s DUV initiatives. The plan: 12 machines and a very long to-do list Shanghai Yuliangsheng is leading the manufacturing push, with a target of producing 12 advanced DUV units by the end of 2026. Those machines are already being tested at production sites belonging to Semiconductor Manufacturing International Corporation (SMIC), China’s largest contract chipmaker, and at Huawei’s own facilities. For now, the DUV systems are being aimed at simpler chip designs. The longer-term ambition is to develop capabilities suitabl...