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Beijing wants a fully domestic chip equipment supply chain. SMIC, CXMT, and YMTC have replaced foreign etching, measurement, and deposition tools. But lithography machines remain the bottleneck, produced only by ASML, Canon, and Nikon. Lithography accounted for nearly 25% of global chip equipment spending last year.
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Summary by ByteBrief

A look at advanced chip packaging, now more reliant on TSMC and its partners in Taiwan than ever, and the efforts to address this bottleneck in the US (Don Clark/New York Times)

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