CXMT and YMTC Secure Three-Year ASML DUV Stockpile as Huawei Directs Yuliangsheng Scanner Tests at SMIC

CXMT and YMTC completed bulk purchases of ASML Twinscan XT systems totaling enough units for three years of planned expansions, according to industry tracking of 2024 equipment shipments that reached $49.6 billion. Huawei has assumed project coordination for Yuliangsheng, a 2022 SiCarrier spin-out, directing integration of the scanner into SMIC and Huawei fabs with initial output targeted at 12 units by December. The machines target 28 nm single-pass and 7 nm multi-patterning processes already used for Ascend accelerators. US export controls initiated October 2022 and expanded in 2023-2024 restricted EUV and advanced DUV shipments while Congress advanced further restrictions on service access. SMIC continues producing 7 nm chips via multi-patterning on installed ASML tools, with nearly 1,400 units already operating in China by late 2023. Yuliangsheng's scanner still requires Zeiss projection lenses supplied exclusively through ASML channels. China gains a finite window to reduce equipment dependence and sustain AI accelerator output at lower cost than import-constrained alternatives. The United States retains leverage through control of the sole EUV supplier and optics components, while ASML faces revenue concentration risk from any accelerated domestic substitution. Both sides document the same hardware dependency without resolution in current treaty or licensing records. Production ramp of Yuliangsheng units will determine whether the buffer extends beyond 2027 or forces earlier process compromises at SMIC and Huawei facilities.