UBS Says China Trails ASML’s EUV Technology by 10 Years

China is unlikely to match Dutch chip-equipment maker ASML’s extreme ultraviolet (EUV) lithography machines for another 10 years, according to a report from investment bank UBS.

EUV lithography scanners are a key link in advanced chip manufacturing. Without them, producing the latest chips becomes more complicated and costly. US restrictions prevent China’s major chip manufacturers from acquiring ASML’s EUV machines.

UBS says China’s EUV chip-manufacturing technology remains similar to ASML’s 2004 level. The report also says China could close the gap in older immersion-based deep ultraviolet (DUV) lithography much sooner than in EUV technology.