Deep Dive: SMEE and China's Attempt to Replace ASML Tools

Everything you need to know about Shanghai Micro Electronics Equipment, the Asian nation's low-key photolithography system champion.

China started its semiconductor journey in the 1990s, concentrating mainly on integrated circuit (IC) design. Then-newly invented foundry model allowed TSMC and Asia's other contract manufacturers to offer their capacities, meeting demand from the mainland's fledging fabless chipmakers. Resulting from a 30-year-long journey, China has grown into a major player in the space, accounting for nearly 13% (link in Chinese) of the global IC design market in 2020. 

These days, the action takes place in areas beyond chip design. Amid the continuing trade and tech standoff with the US, China has been speeding up the development of domestic fabrication plants to localize the most vital elements of the technology supply chain.

As the US recently proposed a stricter policy to ban exports to China of semiconductor manufacturing equipment, Beijing is doubling down on designing and building high-end processing tools within the mainland. 

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