China Faces ‘Critical Chokepoint’ in Advanced Chipmaking Tools, Think Tank Says

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China Faces ‘Critical Chokepoint’ in Advanced Chipmaking Tools, Think Tank Says

An employee inspects semiconductor chips at a factory in Binzhou, Shandong Province, China, on Jan. 15, 2025. STR/AFP via Getty Images

China made little progress in advancing its semiconductor lithography technology over the past five years, despite a government effort to support its domestic semiconductor manufacturing equipment (SME) industry, according to a report published by the Center for Security and Emerging Technology on July 14.

The report’s researchers outlined the changes in market shares of key countries, including the United States, the Netherlands, Japan, China, and South Korea, in the SME industry between 2019 and 2024. One key sector in the SME industry is lithography, a crucial step in the chipmaking process that involves exposing silicon wafers to ultraviolet (UV) light to transfer circuit patterns onto the wafer surface.

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