China’s 5nm Without EUV: Why SMIC’s N+3 Claim Matters

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China’s largest foundry, SMIC, says it is now in volume production on its 5nm-class N+3 node.
Some reports go further, claiming Huawei’s Kirin 9030 is being manufactured on this process.

What makes this announcement exceptional is not the node label itself — it’s how it’s being done.

SMIC is reportedly producing 5nm-class chips without extreme ultraviolet (EUV) lithography, relying instead on deep ultraviolet (DUV) immersion tools and heavy multi-patterning.

In modern semiconductor manufacturing, that is an unusual — and costly — path.

Why EUV Is Normally Non-Negotiable

At the leading edge, the world’s top fabs rely on EUV lithography, which uses 13.5nm wavelength light to print extremely fine features in a single exposure.

• ASML is the only company in the world that builds EUV systems

• EUV dramatically reduces the number of lithography steps per layer

• Fewer steps mean higher yield, lower defect rates, and lower cost per chip

That’s why TSMC and Samsung both run EUV-heavy flows at advanced nodes — and why ASML is already pushing High-NA EUV as the next frontier.

China, however, has been cut off from EUV systems for years due to export controls.

The DUV Workaround — And Its Cost

SMIC’s workaround uses 193nm DUV immersion lithography, the same class of tools used globally at older nodes.

But 193nm light cannot directly print 5nm-scale features.

To compensate, SMIC must use multi-patterning:

• Multiple aligned exposures to create a single dense layer

• More masks

• More alignment steps

• More opportunities for defects

Each extra pass raises the risk of overlay errors, shorts, and broken connections.

Reports suggest very tight metal pitch is a key pain point — densely packed wiring is far more sensitive to misalignment.

The result: low yield.

Yield Is the Real Battleground

Yield determines whether “volume production” is economically meaningful.

• Low yield means many dies fail

• Working chips become expensive

• Early runs can be sold at a loss

• Chips may be down-binned to lower performance tiers

This is why analysts remain cautious.

Yes, chips may be coming off the line.
But the question is whether they can be produced profitably, consistently, and at scale.

Without EUV, the economics are brutal.

Why China Is Still Pushing Forward

From Beijing’s perspective, this effort is not just about smartphones.

It’s about strategic independence.

Export controls are expanding beyond EUV into:

• Advanced DUV immersion components

• Metrology tools

• Process control software

China’s long-term objective is clear:

That means reducing reliance on:

• ASML

• U.S. semiconductor IP

• Western supply chains altogether

Stretching DUV further than anyone thought possible is part of proving that this path, however inefficient today, is not blocked forever.

The Big Picture

SMIC’s N+3 node is not a replacement for EUV-based 5nm.

It is:

• More complex

• Lower yielding

• More expensive per good chip

• Technically fragile

But it is also a signal.

China is showing it can move forward even when denied the industry’s most critical tool.

Meanwhile, the frontier continues to advance elsewhere:

• TSMC and Samsung deepen EUV usage

• ASML prepares High-NA EUV

• The gap shifts, but does not disappear

This is not the end of EUV dominance.

But it is proof that lithography has become geopolitics by other means.

And the race is no longer just about who has the best machines —
it’s about who can still build when access is cut off.