A Chinese start-up has unveiled a prototype extreme ultraviolet (EUV) light-source machine – a component often described as the “heart” of advanced lithography systems – marking an early but critical step in Beijing’s drive for self-reliance in chipmaking equipment.

At the China International Industry Fair in Shanghai, Langdao Silex displayed its self-developed EUV light-source system. Ninety per cent of the machine’s components were localised, with the vast majority of core parts developed in-house, a company representative said, according to a report by Chinese news outlet Jiefang Daily on Tuesday.

On-site staff described the prototype as a crucial step in moving domestically produced EUV light sources from the laboratory to industrial applications, although mass production remained “three to five years away”, according to the report.

An EUV light source is a key subsystem in advanced lithography equipment, generating the extreme ultraviolet light required to expose microscopic circuit patterns onto silicon wafers.

The public display provides a rare glimpse into China’s progress in EUV technology as the country remains cut off from the global supply chain for the most advanced chipmaking equipment amid the US-China tech war.

Under Washington-led export curbs, Dutch giant ASML, the world’s sole manufacturer of EUV lithography systems, is barred from selling the cutting-edge machinery to Chinese customers.

As a result, domestic chipmakers have relied on older deep ultraviolet equipment and creative multi-patterning techniques, spurring local researchers to aggressively pursue indigenous EUV capabilities.

Despite the start-up’s progress, some global industry leaders remain sceptical about the prospects for rapid Chinese breakthroughs.

On Wednesday, ASML CEO Christophe Fouquet said during an investor call that Chinese customers had little incentive to develop domestic alternatives as long as they retained access to the company’s products, adding that the country still had “a very, very long way to go” to match ASML’s technology.

Founded in 2024, Langdao Silex was backed by a research team from Tsinghua University’s Gas Discharge and Plasma Laboratory that specialised in laser-produced plasma EUV light sources, according to its website.

The Shanghai-based start-up has already secured multiple funding rounds from state-backed and prominent industry investors, including China Fortune-Tech Capital, an investment arm tied to China’s top foundry, Semiconductor Manufacturing International Corporation, or SMIC.

Langdao Silex is among a handful of Chinese companies and research institutes that have reported progress in advanced lithography development, although none has yet reached the commercial stage. Meanwhile, domestic equipment suppliers are expanding across other stages of the chipmaking process.

At the concurrent WeSemiBay semiconductor expo in Shenzhen, Hwatsing Technology introduced a medium-current ion implanter, Leadmicro showcased advanced thin-film deposition equipment, and Piotech announced a carbon-film deposition technology for memory and logic chips.

Driven by Beijing’s localisation drive and tighter supplies of key components from Europe and Japan, Chinese equipment manufacturers were rapidly increasing their adoption of domestically produced components, according to a report published by Bernstein Research on Tuesday.

Domestic suppliers were expected to capture 52 per cent of China’s wafer-fabrication equipment market by 2028, up from an estimated 28 per cent this year, the report said.