--- title: "Where does Xinkailai come from and what is it doing?" type: "News" locale: "en" url: "https://longbridge.com/en/news/261419674.md" description: "Xinkailai Technology Co., Ltd. attracted attention at the Bay Area Semiconductor Industry Ecosystem Expo due to rumors that it is developing lithography machines for manufacturing high-end chips at 7 nanometers and below. Although Xinkailai has not publicly acknowledged this business, it showcased several semiconductor equipment products, including etching and thin film deposition. Xinkailai was established in 2021 and is wholly owned by the Shenzhen State-owned Assets Supervision and Administration Commission, dedicated to challenging multiple semiconductor equipment technologies" datetime: "2025-10-16T10:45:52.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/261419674.md) - [en](https://longbridge.com/en/news/261419674.md) - [zh-HK](https://longbridge.com/zh-HK/news/261419674.md) --- # Where does Xinkailai come from and what is it doing? With the increasing high-tech blockade against China by the United States in recent years, the lithography machine, which was originally a niche semiconductor equipment used in chip manufacturing, has become increasingly well-known to the public. This is because one of the core reasons China cannot produce high-end chips at 7 nanometers and below is the inability to import EUV (Extreme Ultraviolet) lithography machines from the Dutch company ASML, relying solely on independent research and development. Therefore, any developments in the research and development of domestic lithography machines easily attract significant attention. From October 15 to 17, the Bay Area Semiconductor Industry Ecological Expo (hereinafter referred to as the "Bay Chip Expo") was held in Shenzhen. The most 关注 ed company at this year's Bay Chip Expo was Shenzhen Xinkailai Technology Co., Ltd. (hereinafter referred to as "Xinkailai"). Founded in 2021 and wholly owned by the Shenzhen State-owned Assets Supervision and Administration Commission, this young startup has garnered special attention mainly due to ongoing market rumors that Xinkailai is developing lithography machines for manufacturing high-end chips at 7 nanometers and below. Xinkailai not only did not showcase any information related to lithography machines, but in fact, as of the time of this article's publication, Xinkailai has never explicitly acknowledged this business in various public channels such as its official website, press conferences, or technology exhibitions. The only company in China that publicly acknowledges its responsibility for lithography machine development is Shanghai Micro Electronics Equipment (Group) Co., Ltd. (hereinafter referred to as "Shanghai Microelectronics"), which has achieved mass production of dry DUV (Deep Ultraviolet) lithography machines for manufacturing 90-nanometer chips. According to Securities Times, Shanghai Microelectronics' 28-nanometer immersion DUV lithography machine has also entered the product verification stage, but the EUV lithography machine is still in the preliminary research stage (the parameters of the EUV lithography machine were first publicly disclosed at the 2025 China International Industry Fair), requiring breakthroughs in core technologies such as light sources and optical systems. Although not involved in lithography machines, Xinkailai is challenging multiple "bottleneck" technologies in semiconductor equipment. At this year's Bay Chip Expo, Xinkailai showcased six major product categories, with its subsidiaries Qiyunfang (Wuhan Qiyunfang Technology Co., Ltd.) and Wanliyan (Shenzhen Wanliyan Technology Co., Ltd.) respectively releasing EDA design software and ultra-high-speed oscilloscopes. Each major product series of Xinkailai is named after famous Chinese mountains, implicitly aiming to establish a peak in Chinese semiconductor equipment. ## **1\. Epitaxial Deposition (EPI) Equipment (Emei Mountain Series)** The role of EPI equipment is to grow a layer of atomically precise single-crystal semiconductor materials (such as silicon, germanium-silicon, silicon carbide, etc.) on the wafer surface through chemical vapor deposition (CVD) technology, directly determining the performance and reliability of the chip. EPI equipment is one of the most critical "bottleneck" projects in semiconductor manufacturing, with technological barriers and market monopoly levels comparable to lithography machines. The global front-end EPI equipment market has long been dominated by the American company Applied Materials (AMAT) and Japan's Tokyo Electron (TEL), collectively holding over 90% of the market share The domestic EPI equipment research and development started relatively late. Currently, the performance of 8-inch EPI equipment is close to the international level, with the main representative manufacturer being Northern Huachuang. However, 12-inch EPI equipment still relies on imports. According to the information released by Xinkailai, the EPI equipment from Xinkailai achieves a film thickness uniformity of ±0.5% in the 8-inch silicon-based epitaxy process, which is at the same technical level as similar equipment from Applied Materials. ## 2\. Atomic Layer Deposition (ALD) Equipment (Alishan Series) ALD equipment is like a nano-level painter, specifically designed to create atomic-level ultra-thin and ultra-uniform films for chip manufacturing. It is a core process in the "film deposition" of the front-end process and is a key device for achieving precise structures in advanced processes (7 nanometers and below). Currently, the global ALD equipment market is dominated by ASM (Advanced Semiconductor Materials) from the Netherlands and Tokyo Electron from Japan, with a combined market share of over 60%. Domestic ALD equipment research and development began after 2015. Currently, mature process (28 nanometers and above) equipment has achieved mass production breakthroughs, but advanced process equipment still relies on imports. The main representative manufacturers include Xinkailai, Northern Huachuang (002371.SZ), and TuoJing Technology (688072.SH). Xinkailai's film deposition equipment "Alishan" series includes three products. Among them, Alishan No. 1 is a 12-inch high conformality dielectric film atomic layer deposition equipment, equipped with a pentagonal platform and Twin chamber leading architecture, covering advanced logic/storage front, middle, and back-end dielectric film application scenarios, meeting the needs for graphical, ultra-thin films, and ultra-high aspect ratio gap fill, supporting evolution towards future advanced nodes. Alishan No. 2 is a 12-inch dielectric etching barrier layer film deposition equipment, while No. 3 is a 12-inch high aspect ratio metal gate atomic layer deposition equipment, both supporting evolution towards advanced nodes. ## 3\. Physical Vapor Deposition (PVD) Equipment (Putuo Mountain Series) The role of PVD equipment is to deposit metal or dielectric materials onto the wafer surface through physical processes such as evaporation and sputtering, forming key structures like conductive interconnect layers and gate electrodes. The resistivity, uniformity, and adhesion of its films directly determine the electrical performance and reliability of the chip. PVD equipment is the core equipment in the semiconductor film deposition field, with technological barriers concentrated in high-power sputter source design and large-area uniform deposition control. The global market has long been monopolized by Applied Materials from the United States, with a market share as high as 85%, especially in the field of copper interconnect deposition for 12-inch advanced processes, where it holds almost a dominant position. Domestic PVD equipment research and development started relatively late. 8-inch mature process equipment has achieved bulk supply, but 12-inch advanced process copper interconnect PVD equipment still mainly relies on imports. Domestic manufacturers involved in PVD equipment include Northern Huachuang, TuoJing Technology, and Xinkailai. Among them, Northern Huachuang is the leading enterprise in domestic PVD equipment; TuoJing Technology mainly focuses on CVD (Chemical Vapor Deposition) and ALD (Atomic Layer Deposition), but it also has layouts in the PVD field; public information shows that Xinkailai has launched three PVD equipment models from Putuo Mountain No. 1 to No. 3, targeting metal planar films, middle contact layers, and back-end interconnects, respectively For example, Putuo Mountain No. 3 adopts multiple electromagnetic control and high ionization self-ionization plasma technology to achieve high-quality metal filling. Its platform architecture flexibly responds to diverse application scenarios, with first-generation design supporting multiple generations of processes. ## 4\. Etching Equipment (Wuyi Mountain Series) Etching equipment uses plasma or chemical reagents for selective etching on the wafer surface, accurately transferring the patterns defined by photolithography onto thin films or substrates, serving as the core tool for "patterning" in semiconductor manufacturing. In simple terms, etching equipment is like a super fine "carving knife," engraving nano-level circuit patterns on the wafer. Etching equipment is the second largest category in the semiconductor equipment market, with technological barriers reflected in high aspect ratio etching and atomic layer etching (ALE) technology. The global market has long been dominated by American Lam Research, Applied Materials (AMAT), and Japan's Tokyo Electron (TEL), which together account for over 90% of the market share. Domestic etching equipment research and development has progressed rapidly, with medium etching and metal etching equipment for mature processes (28 nanometers and above) having achieved localization, mainly supplied by Zhongwei Company and Northern Huachuang; in the field of advanced processes of 7 nanometers and below, Zhongwei Company has made key breakthroughs, publicly stating that its high aspect ratio etching equipment has been successfully applied in the 5-nanometer and more advanced chip production lines of leading domestic and international chip manufacturers. The new Kai Lai etching product ETCH (Wuyi Mountain) series includes three devices: Wuyi Mountain No. 1, No. 3, and No. 5. Among them, Wuyi Mountain No. 1 MAS is a capacitively coupled plasma (CCP) dry etching device that achieves full RF link autonomy and controllability, with multi-frequency three-level synchronous pulses meeting the needs for three-dimensional complex morphology control; Wuyi Mountain No. 5 is a radical dry etching device that adopts an innovative gas uniformity design, significantly improving etching selectivity. ## 5\. Thin Film Deposition CVD Equipment (Changbai Mountain Series) Thin film deposition equipment grows or covers specific material thin film layers on the wafer surface through processes such as CVD or PVD, used to construct the conductive layer, insulating layer, or protective layer of the chip. In simple terms, thin film deposition equipment is like a "nano-level spray machine," evenly covering the wafer with various functional thin film materials, laying the foundation for subsequent circuit patterning. Thin film deposition equipment is one of the largest categories in the semiconductor equipment market, with technological barriers concentrated in film uniformity, defect control, and advanced material compatibility. The global market has long been dominated by American Applied Materials, Lam Research, and Japan's Tokyo Electron, which together account for over 80% of the market share. In recent years, domestic CVD equipment research and development has made significant progress, achieving localization in the medium film and polysilicon deposition fields for mature processes of 28 nanometers and above, mainly supplied by Northern Huachuang and Tuo Jing Technology; however, CVD equipment for advanced processes of 7 nanometers and below is still constrained by external factors. The new Kai Lai CVD products include Changbai Mountain No. 1 and Changbai Mountain No. 3. According to publicly available information from Kai Lai, Changbai Mountain No. 1 features a single-chamber 4-Station leading architecture, while Changbai Mountain No. 3 comprehensively covers logic and storage metallization chemical vapor deposition application scenarios, featuring innovative architecture and leading performance, with multiple processes highly integrated, supporting evolution towards future advanced nodes ## 6\. Measurement and Inspection Equipment (Yuelu Mountain Series) The role of measurement and inspection equipment is to detect defects and measure parameters throughout the entire wafer manufacturing process using technologies such as optics and X-rays, including film thickness, line width, defect size, etc. It serves as the "eyes" that ensure chip yield, with its detection accuracy and efficiency directly determining mass production capacity and costs. Measurement and inspection equipment is one of the categories with the lowest localization rate in semiconductor equipment, with technical barriers concentrated in nano-level defect identification and high-speed signal processing. The global market has long been monopolized by KLA, Applied Materials, and Tokyo Electron, which together account for over 90% of the market share. According to a report by Western Securities, domestic semiconductor inspection and measurement equipment companies started relatively late, with the market share of major manufacturers increasing from 0.61% in 2019 to 4.34% in 2023. The measurement and inspection equipment from New Kylin includes the Yuelu Mountain series, Danxia Mountain series, Penglai Mountain series, Moganshan Mountain series, Tianmenshan Mountain series, Yimeng Mountain series, and Chibi Mountain series, as well as the RATE series products for power detection. According to Jiemian News, New Kylin's measurement and inspection equipment is actually divided into two categories. One category consists of optically challenging measurement products, including bright field defect detection (BFI), dark field defect detection (DFI), and surface defect detection (PC). The company stated that these products have basically completed customer-side validation and will enter mass production by 2025. The other category includes PX (Physical and X-ray) and power detection products, which were previously absent in the domestic market but are essential for production lines. This includes Atomic Force Microscopy measurement (AFM), X-ray measurement (XPS), and Chip Probing (CP) testing machines. Among them, PX measurement products have entered mass production and delivery, and power detection products have also entered large-scale applications. According to the Southern Daily, Li Zhoujian, president of New Kylin's measurement and inspection equipment product line, stated in an interview that New Kylin has achieved localization of core components, with each breakthrough previously regarded as an insurmountable challenge before 2021. Overall, New Kylin's main product lines focus on the most complex and technically challenging front-end processes in semiconductor manufacturing. **At this year's Bay Chip Expo, the new generation of ultra-high-speed real-time oscilloscopes independently developed by Wanliyan, a subsidiary of New Kylin, has also attracted significant attention from the industry.** According to public information, Wanliyan's CEO Liu Sang stated that the company is focusing on the oscilloscope field for two reasons: first, due to the export controls from the Wassenaar Arrangement to the United States, Western countries prohibit the export of real-time oscilloscopes above 60GHz to China; second, over the past few years, the U.S. has placed more than 1,500 domestic universities, research institutions, and enterprises on the entity control list, preventing them from using conventional American instruments, making high-end electronic measurement instruments a critical bottleneck for the advancement of China's electronics industry. Official information from Wanliyan states that the company's new generation of ultra-high-speed real-time oscilloscopes has a bandwidth exceeding 90GHz, ranking second globally, enhancing the performance of domestic oscilloscopes to 500% of the original level, achieving a leap in multi-band products, and applicable in fields such as semiconductors, 6G communication, optical communication, and intelligent driving Liu Sang also revealed that its series of products can stably provide services to customers in bulk, with Huawei, Shanghai Jiao Tong University, and other institutions as its clients. In summary, Xinkailai and its subsidiaries are striving to systematically solve the "bottleneck" problem in the semiconductor equipment industry at multiple levels by focusing on core process equipment such as PVD, etching, and thin film deposition, as well as high-end measurement instruments. Author of this article: Zhou Yuan, Source: Caijing Magazine, Original title: "Where Does Xinkailai Come From and What Is It Doing?" Risk Warning and Disclaimer The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. 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