China Advances Toward 6nm Chip Production with Rapid Semiconductor Equipment Growth

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The global semiconductor landscape is undergoing a pivotal transformation, and China is positioning itself as a key player in this high-stakes technological race. At the forefront of this shift is the rapid advancement of domestic semiconductor manufacturing equipment—driven by geopolitical pressures, strategic investments, and accelerating innovation. The 2025 SEMICON China exhibition in Shanghai served as a powerful showcase of this progress, drawing over 180,000 attendees and spotlighting Chinese companies like NAURA and SiCarrier, which are now developing equipment capable of supporting processes as advanced as 6nm chip fabrication.

This surge in self-reliance isn’t just symbolic—it’s measurable. In 2024, Yangtze Memory Technologies (YMTC) reportedly sourced 65% of its manufacturing equipment domestically, signaling a dramatic shift away from reliance on U.S., Japanese, and Dutch suppliers. With export restrictions tightening on extreme ultraviolet (EUV) lithography and other critical tools, China has doubled down on building a resilient, homegrown semiconductor supply chain.

SEMICON China: A Barometer of Industry Momentum

Held from March 26 to 28, 2025, SEMICON China attracted nearly twice the audience of SEMICON Japan 2024—underscoring the growing global interest in China’s semiconductor ecosystem. Long queues formed at the entrance on opening day, reflecting not only strong domestic participation but also heightened international scrutiny.

Japanese giants like Nikon, Canon, and Screen Holdings maintained a presence, yet the spotlight increasingly shifted to local innovators. As Advantest’s executive director Masato Nakahara noted, “The number of Japanese analysts and media here this year is remarkable.” This observation highlights a broader trend: the world is watching China’s semiconductor evolution more closely than ever.

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Geopolitical Pressure Fuels Domestic Innovation

U.S.-China technological tensions have been a catalyst for change. Since 2018, escalating export controls have limited China’s access to cutting-edge semiconductor manufacturing tools—particularly EUV lithography systems essential for sub-7nm logic chips. By 2023, coordinated restrictions involving the U.S., Japan, and the Netherlands further tightened the screws on advanced etching and deposition equipment.

While these measures aim to curb China’s ability to produce AI-enhanced military-grade semiconductors, they’ve had an unintended consequence: accelerating domestic substitution. Unable to acquire the most advanced foreign tools, Chinese firms have turned inward, investing heavily in R&D and scaling up local production capabilities.

This strategy has proven effective—especially in memory chip manufacturing. NAND flash production, unlike cutting-edge logic chips, does not require EUV technology. Instead, it relies on deep ultraviolet (DUV) lithography and advanced etching techniques—areas where Chinese equipment makers are making rapid strides.

According to Wuhan University professor Liu Sheng, who spoke at the SEMICON China opening ceremony, over 60% of equipment used by YMTC in 2024 was domestically produced, with some estimates placing the figure as high as 65%. This marks a significant leap toward supply chain independence.

NAURA Leads the Charge in 6nm Process Development

Among the standout performers at SEMICON China was NAURA Technology Group, China’s largest semiconductor equipment manufacturer. Founded in 2001 as a state-backed enterprise, NAURA has expanded its portfolio across multiple front-end and back-end processes—including etching, thin-film deposition (PVD/CVD), diffusion, cleaning, and packaging.

What captured attention at the event was NAURA’s demonstration of 6nm process technology, showcased through a high-impact video presentation at its bustling booth. Using multiple patterning techniques—a method that layers repeated lithography and etching steps—NAURA aims to achieve nanoscale precision without relying on EUV light.

While EUV enables single-exposure patterning at sub-7nm nodes, multiple patterning offers a workaround using existing DUV tools. Though more complex and time-consuming, this approach allows Chinese foundries to push toward advanced nodes despite equipment constraints.

Canada-based TechInsights ranked NAURA 10th globally in semiconductor equipment sales in 2023, marking the first time a Chinese company entered the top 10. Its diverse product lineup rivals industry leaders like Applied Materials and Tokyo Electron, particularly in areas such as physical vapor deposition (PVD) and 2.5D/3D advanced packaging solutions.

Other emerging players like SiCarrier, CETC Electronics Equipment Group, and MEGAROBO Technologies also unveiled new innovations at the show, reinforcing China’s broad-based push into equipment autonomy.

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Building a Resilient Domestic Supply Chain

Beyond individual company achievements, the bigger story lies in systemic progress. While logic chips below 7nm still face significant hurdles due to the lack of EUV access, China is steadily closing the gap in mature and mid-range nodes—from 28nm all the way down to 6nm.

Key factors enabling this include:

Companies like SMIC (Semiconductor Manufacturing International Corporation) are already producing 7nm chips using advanced multiple patterning techniques. With NAURA and others supplying increasingly capable tools, the path to volume production at 6nm and below is becoming clearer—even without EUV.

Moreover, the expansion of semiconductor fabs in China isn’t limited to domestic firms. Global players like Samsung and SK Hynix continue to operate or expand facilities within the country, further integrating China into the global supply chain—even amid geopolitical friction.

Frequently Asked Questions (FAQ)

Q: Can China really produce 6nm chips without EUV lithography?
A: Yes—with limitations. Using multiple patterning techniques (such as SADP and SAQP), manufacturers can achieve 6nm-level precision using deep ultraviolet (DUV) lithography. However, this increases process complexity, reduces yield, and raises costs compared to EUV-based methods.

Q: How does NAURA compare to global equipment leaders like Applied Materials or Tokyo Electron?
A: NAURA has closed the gap significantly in mature nodes (28nm and above) and is competitive in areas like PVD, etching, and cleaning. While still behind in EUV-related technologies, its broad portfolio and aggressive R&D spending make it a formidable player in non-EUV processes.

Q: Is China fully self-sufficient in semiconductor manufacturing now?
A: Not yet. While domestic equipment adoption has surged—especially at YMTC and SMIC—China still depends on foreign tools for certain critical processes and materials. Full self-sufficiency remains a long-term goal rather than a current reality.

Q: What impact do U.S. export controls have on China's chip ambitions?
A: They delay access to the most advanced technologies but have accelerated domestic innovation. Restrictions have pushed Chinese firms to develop alternatives, particularly in non-EUV domains. The result is faster progress in indigenous capabilities across etching, deposition, and inspection tools.

Q: Which sectors benefit most from China's advancing chip production?
A: Industries such as automotive electronics, consumer IoT devices, industrial automation, and AI edge computing benefit significantly. These applications often run efficiently on 14nm to 6nm nodes—precisely where Chinese foundries are gaining strength.

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The Road Ahead: From Substitution to Leadership?

China’s journey toward semiconductor self-reliance is no longer just about survival—it’s about strategic positioning. With NAURA targeting 6nm chip manufacturing, YMTC achieving 65% domestic equipment adoption, and SEMICON China drawing unprecedented crowds, the momentum is undeniable.

While challenges remain—especially in logic chips requiring EUV—the foundation for a robust domestic ecosystem is now firmly in place. As development continues at pace, China may soon transition from catching up to setting its own technological benchmarks.

For global markets, this means a more multipolar semiconductor future—one where innovation flows not just from Silicon Valley or Tokyo, but also from Beijing and Shanghai.

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