German media: The progress of China's domestic chip equipment suppliers is astonishing.

Etching is a key step in chip manufacturing, using chemical reactions (wet etching) or high-energy ions (dry/plasma etching) to remove the thin film material not protected by photoresist, thereby permanently transferring the circuit pattern onto the chip.

According to sources, China's largest chip equipment group, NAFOUN, has tested its etching equipment on an advanced 7nm production line at SMIC. Previously, NAFOUN had successfully applied etching equipment to 14nm production lines. The early stage results of this test indicate that the progress of China's domestic suppliers is astonishing.

According to sources, previously, advanced etching equipment in China was mainly supplied by foreign companies such as Lam Research and Tokyo Electron. However, now NAFOUN and its smaller competitor, AMEC, are partially replacing these foreign companies.

NAFOUN has also become a key partner for Chinese memory chip manufacturers. According to sources, NAFOUN has also developed electrostatic chucks for fixed chips, replacing worn-out parts from Lam Research that could no longer be repaired due to U.S. restrictions in 2023.

China's development has caused concern among global competitors because foreign suppliers are being pushed out of the Chinese market. According to data from the AcclaimIP database by Anaqua, NAFOUN submitted a record number of 779 patent applications in 2025, more than twice the number submitted in 2020 and 2021, while AMEC submitted 259.

NAFOUN's revenue increased by 30% in the first half of this year, reaching 16 billion yuan. AMEC's revenue grew by 44% in the first half of the year, reaching 5 billion yuan.

Analysts estimate that the self-sufficiency rate of photoresist removal and cleaning equipment in China has reached about 50%, a market previously dominated by Japanese companies, but now led by NAFOUN in the domestic market.

A source said, "The Chinese local equipment market will be dominated by two to three major manufacturers, and NAFOUN is certainly one of them."

Source: DW

Original: toutiao.com/article/1852986667583500/

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