TMTPOST--The Shanghai Lieth Precision Equipment project will be put into operation in Yuecheng District, Shaoxing city of southeastern China's Zhejiang province, with a total investment of approximately five billion yuan (US$ 690 million).

The project is planned to be constructed in two phases: the first phase with an investment of about 500 million yuan, covering an area of 35 mu (approximately 2.3 hectares), aims to transfer and expand the company's current production capacity from Shanghai, according to the official media center of Yuecheng District. The second phase, with an investment of about 4.5 billion yuan, plans to achieve an annual production capacity of 50-100 semiconductor equipment units. The project is currently under construction and is expected to commence production by 2025.

This marks a rare official disclosure in recent years by local authorities regarding semiconductor lithography equipment.

Semiconductor lithography machines, also known as mask aligners, are core equipment in the chip manufacturing process. The lithography process transfers geometric patterns from a mask plate to a photosensitive material (photoresist) on a wafer. This critical process step determines the key dimensions of chips and accounts for approximately 35% of the total manufacturing cost. Hence, lithography machines are often referred to as the "crown jewel" of chip manufacturing.

Currently, the most advanced lithography technologies come from international giants such as Netherlands-headquartered ASML and Japan-based Nikon and Canon. The most advanced EUV (Extreme Ultraviolet) lithography machines are exclusively provided by ASML, with each machine consisting of over 450,000 parts.

Despite the complexity of chip manufacturing processes, Chinese companies heavily rely on imports to meet the demand of the integrated circuit industry. China is particularly reliant on the import of the fifth-generation lithography machines with 13.5nm EUV wavelength.

Shanghai Lieth Precision Equipment Co., Ltd., primarily known for semiconductor equipment refurbishment and debugging rather than as a "domestic lithography machine manufacturer," aims to expand its capabilities.

The company's Chairman Zhong Min revealed that it not only develops and manufactures domestic lithography machines according to market demand but also provides customized refurbishment and debugging services for foreign lithography machines from ASML, Nikon, and Canon. Shanghai Lieth currently possesses the technical expertise and resources to support 6-inch, 8-inch, and 12-inch lithography machines, offering customized services tailored to different chip product characteristics and processes.

The establishment of this new factory in Shaoxing signals a significant step towards reducing China's reliance on foreign semiconductor equipment, potentially strengthening domestic capabilities in advanced manufacturing technologies.