SHANGHAI Micro Electronics Equipment Group Co. achieved a technological breakthrough in chipmaking gear, a major shareholder declared, suggesting the U.S.-blacklisted firm has made advances in China’s fight to overcome U.S. chip sanctions.

Known as SMEE, the company developed a lithography machine that can be used to make 28-nanometer chips, Zhangjiang Group said in a post on WeChat on Tuesday.

Zhangjiang is the parent of listed Shanghai Zhangjiang Hi-Tech Park Development Co., which is SMEE’s fourth-largest shareholder, according to data provider Tianyancha.

Zhangjiang Hi-Tech’s Shanghai-listed stock surged as much as 8.06% yesterday morning, before the firm later amended that post to remove references to 28nm. Instead, the post now reads simply that SMEE is committed to building advanced lithography machines.

The Biden administration is leading a multilateral campaign to undermine China’s efforts to become self-sufficient in semiconductors and chipmaking tech, including lithography.

SMEE is regarded by experts as China’s best hope to contend with ASML Holding NV, which has a monopoly on the cutting-edge extreme ultraviolet lithography systems required to make advanced semiconductors.

The U.S. Department of Commerce blacklisted SMEE late last year after American officials ramped up efforts to thwart China’s efforts to build a world-class chip industry.

ASML has not been able to provide China with its EUV machines as Dutch officials would not give the company licenses to do so, under pressure from the United States.

A SMEE representative yesterday said the company has no additional information to offer.

While 28nm chips first became available in 2011, SMEE’s latest achievement means China may have reduced the gap with the field’s leader by several years.

Previously, China’s own lithography technology had lagged the Dutch company’s by about 20 years. Though more mature, 28nm chips are also still essential for a plethora of products including smartphones and electric vehicles.

U.S. and European officials have also become increasingly concerned about China’s accelerated push into the production of older-generation semiconductors and are debating new strategies to contain the country’s expansion.

Founded in 2002, SMEE is one of China’s leading lithography machine makers and accounts for about 80% of the domestic market, industry sources said.

SMEE’s website shows that it has developed machines capable of manufacturing chips at 90nm, a technology that is suitable for producing low-end chips. (SD-Agencies)