China’s leading semiconductor executives are calling for a nationwide effort to create a homegrown alternative to ASML Holding N.V. as U.S. restrictions tighten on advanced chip tools.

In an article published in Science and Technology Review, executives from Semiconductor Manufacturing International Corporation (SMIC), Empyrean, Yangtze Memory Technologies (YMTC), and Naura Technology, along with academics, argued that China’s chip sector remains too small, fragmented, and weak, dispersing public resources and slowing progress.

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The authors said U.S. restrictions have targeted three key areas of China’s semiconductor industry: electronic design automation (EDA) tools used for chip design, silicon wafers, and manufacturing equipment—particularly extreme ultraviolet (EUV) lithography, a technology dominated by ASML, which cannot export EUV machines to China, SCMP reported on Thursday.

They stressed that China must coordinate financial and human resources nationwide to build its own EUV ecosystem and strengthen capabilities in EDA and wafer production, with the effort expected to continue through the 15th Five-Year Plan, which ends in 2030.

The article also noted that China’s semiconductor industry remains highly fragmented, with over 100 EDA developers, about 3,600 chip designers, and more than 180 wafer-equipment companies, highlighting the need for stronger collaboration and consolidation across the sector.

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Meanwhile, ASML is charting a new course in the chipmaking industry by venturing into advanced packaging solutions for artificial intelligence (AI) chips.

Recently, the company revealed plans to integrate AI into its existing and future operations, aiming to enhance the performance and speed of its tools, which are critical for producing cutting-edge AI processors.

Chief Technology Officer Marco Pieters indicated that ASML is not just focused on immediate advancements but is also planning for the industry’s trajectory over the next decade and beyond.

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This article China's Semiconductor Makers Unite In Call To 'Build China's ASML' originally appeared on Benzinga.com