China's Laser Trick Bypasses 2,000 ASML Patents in EUV Lithography 2026

Daniel Harrolds
China's Laser Trick Bypasses 2,000 ASML Patents in EUV Lithography
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China has built its first laser-plasma extreme ultraviolet (EUV) light source platform, a development that deliberately bypasses more than 2,000 patents held by Dutch giant ASML. The breakthrough, led by former ASML scientist Lin Nan at the Shanghai Institute of Optics and Fine Mechanics, marks a significant step in China's push for semiconductor self-sufficiency.

EUV lithography is the most critical bottleneck in the semiconductor industry. Only ASML produces the machines needed to fabricate integrated circuits below 7 nanometers, and since 2019, export controls have barred the sale of its most advanced tools to China. Each unit costs between $200 million and $400 million, and until now, no Chinese customer has managed to acquire one.


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Why EUV Lithography Is the Industry's Tightest Bottleneck

EUV lithography uses extremely short wavelengths of light to etch tiny features onto silicon wafers. The technology is essential for manufacturing cutting-edge chips used in smartphones, AI accelerators, and advanced military systems. Without EUV, chipmakers are stuck at older nodes, limiting performance and energy efficiency.

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ASML's monopoly on EUV tools gives it immense leverage. The company spent decades and billions of dollars perfecting the technology, which relies on a complex process of generating EUV light by firing high-powered lasers at tiny tin droplets. This process creates a plasma that emits EUV radiation, which is then focused onto a mask and projected onto the wafer.

The export ban has forced China to develop its own EUV capabilities from scratch. The new laser-plasma source platform is a key milestone in that effort, demonstrating that China can generate EUV light without infringing on ASML's intellectual property.

How Lin Nan's Team Engineered Around ASML's Patents

Lin Nan, who previously worked on EUV light sources for metrology at ASML, returned to China in 2021 under a state talent program. His team at the Shanghai Institute of Optics and Fine Mechanics took a different technical approach to generating EUV light, avoiding the specific methods and designs patented by ASML.

While the exact details of the Chinese design are not public, the team's approach is believed to involve a novel laser-plasma configuration that achieves the required power and stability without replicating ASML's proprietary architecture. This engineering feat is not merely a legal workaround; it represents genuine innovation in a field where ASML has dominated for decades.

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Qiu Yanfang, a Chinese semiconductor columnist, summarized it bluntly: this patent detour is not just a legal maneuver; it is genuine engineering. Her assessment, published just two weeks ago, has refocused attention on how far China has actually come in its quest for lithography independence.

What This Means for the Global Semiconductor Supply Chain

China's progress in EUV lithography could eventually reduce its reliance on foreign chipmaking equipment, weakening the impact of export controls. However, the gap between a laboratory demonstration and a commercially viable EUV source is vast. ASML's machines are incredibly complex, with tens of thousands of parts and years of refinement.

Even if China succeeds in building a working EUV source, it must also develop the entire ecosystem around it: precision optics, masks, photoresists, and metrology tools. The laser-plasma source is just one piece of the puzzle. Still, the achievement signals that China is serious about closing the gap, and it may accelerate its timeline for domestic EUV deployment.

  • Patent bypass: China's laser-plasma EUV source avoids over 2,000 ASML patents, demonstrating a new technical pathway.
  • Key figure: Lin Nan, a former ASML scientist, leads the project at the Shanghai Institute of Optics and Fine Mechanics.
  • Strategic impact: The breakthrough could reduce China's dependence on imported EUV tools, which are banned under export controls.
  • Remaining challenges: Commercializing the technology requires building a complete supply chain for optics, masks, and other components.
  • Global implications: Success could reshape the semiconductor industry and undermine the effectiveness of export restrictions.

Comparing China's Laser-Plasma EUV Source to ASML's Technology

Feature ASML EUV Source China's Laser-Plasma EUV Source
Developer ASML (Netherlands) Shanghai Institute of Optics and Fine Mechanics (China)
Light generation method Laser-produced plasma (LPP) with tin droplets Novel laser-plasma configuration (details undisclosed)
Patent status Protected by over 2,000 patents Designed to avoid ASML patents
Commercial availability Available (export restricted) Laboratory demonstration
Cost per unit $200–400 million Unknown

What to Watch Next in China's EUV Quest

The next milestones will be scaling the EUV source to production-level power and stability, integrating it with a full lithography system, and qualifying it for chip manufacturing. China's semiconductor industry is also working on domestic optics and photoresists, which are equally critical. The background to this story is set out in ASML's EUV Light Could Write All of The Lord of the Rings on a Paper Edge. A related thread runs through ASML CEO Warns: Squeezing China May Create a Competitor. Earlier coverage in ASML and Zeiss Name Hyper-NA as Next EUV Lithography Step shows how the argument developed.

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Meanwhile, ASML and the Dutch government will be watching closely. Any sign that China is approaching commercial EUV capability could trigger tighter export controls or diplomatic pushback. The United States, which pressured the Netherlands to restrict sales, may also respond. A closer look at the same subject appears in China's 3nm Chip Breakthrough Without EUV Lithography. Anyone following the wider picture can start with ASML Can't Keep Up With AI Chip Demand: What It Means for Tech. The same theme surfaces in China's Lithography Breakthrough Sinks ASML Stock, which takes a different angle.

For now, the laser-plasma source is a proof of concept, but it is a powerful symbol of China's determination to overcome technological barriers. As Qiu Yanfang noted, it is not cheating; it is engineering. Context on how this played out before sits in ASML Monopoly Faces China's DUV Challenge: What It Means. A companion piece, ASML Shares Fall as US Eyes Tighter China Semiconductor Export Rules, approaches the same subject from another angle.

FAQ

What is EUV lithography and why is it important?

EUV lithography is a manufacturing process that uses extreme ultraviolet light to etch extremely small features onto silicon wafers. It is essential for producing advanced chips with nodes below 7 nanometers, which power AI, smartphones, and high-performance computing.

How did China bypass ASML's patents?

Lin Nan's team at the Shanghai Institute of Optics and Fine Mechanics developed a laser-plasma EUV source that uses a different technical approach from ASML's patented methods. By avoiding the specific designs and processes covered by ASML's patents, they created a new pathway to generate EUV light.

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Does this mean China can now make advanced chips without ASML?

Not yet. The laser-plasma source is a laboratory demonstration. China still needs to develop a complete EUV lithography system, including precision optics, masks, and metrology tools, and scale the technology to commercial production. That could take years.

What are the global implications of China's EUV breakthrough?

If China succeeds in commercializing EUV lithography, it could reduce the effectiveness of export controls and shift the balance of power in the semiconductor industry. It might also accelerate the decoupling of global supply chains and spur further technological competition.

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Daniel Harrolds

Author

Daniel Harrolds

With a career spanning four decades, Daniel is almost a library in the field of precious metals investing and Gold IRAs. His insightful strategies and pragmatic results-oriented approach make him a resource in safeguarding wealth, and financial foresight.


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