

ASML practically monopolizes the market for extreme ultraviolet (EUV) lithography equipment, serving advanced semiconductor chip manufacturing processes. This EUV lithography process employs the fundamental principles of lithography but utilizes ultraviolet beams with a wavelength of 13.5 nm, similar to X-ray wavelengths. ASML employs a solution involving molten tin to generate these beams by rapidly releasing molten tin droplets, approximately 25 microns in size.
As the molten tin droplets fall, they are irradiated with low-power laser light to transform into flat tin pieces. Then, a higher-power laser further melts the tiny tin pieces to create plasma, which serves as the source of ultraviolet beams. This process repeats 50 thousand times per second to generate enough ultraviolet beams for silicon wafer lithography.
It took ASML 17 years and 6 billion Euros to develop machines like the ones pictured above. However, just before the first machines were shipped, the US government pressured the Dutch government to prevent the export of EUV machines to China. This limited China to purchasing older DUV (deep ultraviolet) lithography machines.
As of now, only five corporations have announced their intention to utilize ASML's EUV lithography machines: Intel, Micron, Samsung, SK Hynix, and TSMC.
Normally, this wouldn't pose a challenge to China, as they could previously send chip designs to manufacturing partners like TSMC to produce silicon dies for them. However, due to the trade war, this avenue has been blocked. Consequently, if Huawei or China's semiconductor industry wants to catch up with global development, they must independently research semiconductor manufacturing technology. This naturally requires substantial funding, including support from the Chinese government.