# Naura and SMEE Accelerate Domestic Tool Shipments to Chinese Fabs

*Chinese chipmakers expand procurement of domestic etching and lithography tools as foundries push to insulate production lines from export controls.*

**Published:** August 28, 2026  
**By:** Wei Zhang  
**Section:** Semiconductors & AI Hardware — China  
**Format:** Company Watch  

**Source:** https://eastasiabrief.com/semiconductors/naura-smee-accelerate-domestic-tool-shipments-chinese-fabs-22  
**Publisher:** East Asia Brief (https://eastasiabrief.com/)

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## What to know

- The deployment push concentrates across production lines operated by Semiconductor Manufacturing International Corporation, Hua Hong Semiconductor, Yangtze Memory Technologies, and ChangXin Memory Technologies.
- For Naura Technology Group, the acceleration spans its dielectric and conductor etching tool families.

![Engineers in protective gear operate semiconductor manufacturing machinery inside a cleanroom fabrication facility. (AI-generated image)](https://eastasiabrief.com/media/2026-08-28-9381c5211785.png)
*Engineers in protective gear operate semiconductor manufacturing machinery inside a cleanroom fabrication facility. (AI-generated image)*

Chinese semiconductor equipment manufacturers Naura Technology Group and Shanghai Micro Electronics Equipment have accelerated tool deliveries to domestic foundries during the first half of 2026, driven by higher procurement targets across state-backed memory and logic lines. The increased deployment rate reflects a concerted operational push by fabrication plants to replace foreign front-end machinery with domestically engineered alternatives across mature and intermediate process nodes.

Equipment data from commercial tender awards and company disclosures indicate that Chinese wafer fabrication facilities have raised the domestic sourcing ratio for specific manufacturing steps, particularly plasma etching, cleaning, and chemical vapor deposition. Naura Technology Group, based in Beijing, reported substantial shipment expansion for its inductively coupled plasma and reactive ion etching platforms. Concurrently, Shanghai Micro Electronics Equipment, known as SMEE, expanded deliveries of immersion and dry deep ultraviolet lithography systems designed for packaging and legacy silicon processing.

The deployment push concentrates across production lines operated by Semiconductor Manufacturing International Corporation, Hua Hong Semiconductor, Yangtze Memory Technologies, and ChangXin Memory Technologies. These domestic manufacturers face tightening multilateral export controls administered by the United States, Japan, and the Netherlands, which restrict access to advanced extreme ultraviolet and high-end deep ultraviolet systems as well as advanced atomic layer deposition tools. In response, Chinese fabrication operators have systematically qualified domestic tooling across non-critical and intermediate lithography layers to protect capacity expansion schedules.

For Naura Technology Group, the acceleration spans its dielectric and conductor etching tool families. The company has integrated its high-density plasma etching systems into volume lines running 28-nanometer and 14-nanometer logic processes. In memory fabrication, Naura has supplied specialized etching hardware tailored for high-aspect-ratio hole patterning required in vertical NAND flash architectures. These tools operate alongside foreign systems from Lam Research and Tokyo Electron, handling process steps that do not require ultra-tight overlay or atomic-scale selectivity.

SMEE has concentrated its factory shipments on step-and-scan lithography systems, focusing on i-line, KrF excimer laser, and initial ArF dry platforms. While extreme ultraviolet lithography systems remain exclusive to ASML Holding, Chinese foundries have deployed SMEE ArF systems for coarse patterning layers, back-end packaging, and power discrete components. The practical consequence for foundries is a dual-track procurement structure, where critical patterning steps continue to rely on existing inventories of imported Dutch and Japanese systems, while non-critical layers shift to domestic suppliers.

Advanced Micro-Fabrication Equipment Inc. China, or AMEC, has also recorded higher run rates for its capacitive coupled plasma etching tools, securing orders from both 3D NAND and dynamic random-access memory producers. AMEC and Naura together now supply a significant share of dry etch tools deployed in new fab construction phases in Shanghai, Beijing, and Wuhan. Their production expansion has created downstream demand for domestic precision components, including ceramic electrostatic chucks, radio-frequency generators, and vacuum chambers manufactured within Jiangsu and Zhejiang provinces.

Despite the acceleration in domestic equipment installation, front-end manufacturing lines remain partially reliant on imported components for sub-10-nanometer development. Chinese toolmakers continue to procure high-end optical components, specialized laser sources, and high-purity chemical precursors from international suppliers or second-tier regional distributors. Industry trade records show that while overall machine integration takes place within domestic facilities, the supply chain for sub-assemblies retains notable international exposure.

The accelerated deployment of domestic tooling directly affects global semiconductor equipment vendors. American and Japanese toolmakers have seen their market share in China shift toward trailing-edge tools and non-restricted maintenance services as domestic alternatives take over baseline etching and thermal processing steps. Chinese foundries have accepted lower initial production yields and longer qualification cycles to establish verified domestic baseline recipes, reducing their vulnerability to further export licensing adjustments.

Capital expenditure filings from listed Chinese chipmakers show that domestic equipment accounts for an increasing share of tool outlays in the current fiscal year. Equipment qualification cycles that previously required 12 to 18 months have been compressed to under nine months at several major fabrication clusters. Foundries have established dedicated engineering teams to co-develop process recipes directly with Naura, SMEE, and Kingsemi, embedding domestic equipment into standard production operating procedures.

Delivery schedules registered for the remainder of 2026 show planned shipments of more than 400 front-end processing units across newly built 300-millimeter cleanroom expansions in central and eastern China. Foundries have allocated floor space for these tools in facilities slated to enter commercial wafer output between late 2026 and the third quarter of 2027.

## Impact map

| Event | Korea | China | Japan | Global impact |
| --- | --- | --- | --- | --- |
| Domestic fab tool ramp | memory capex read-across | front-end tool localization | mature node market share | equipment supply chain bifurcated |

## In this story

- **Companies:** Naura Technology Group, Shanghai Micro Electronics Equipment, Semiconductor Manufacturing International Corporation, Advanced Micro-Fabrication Equipment Inc. China
- **Tickers:** 002371.SZ, 688012.SS, 0981.HK
- **Exposed:** ASML Holding, Lam Research, Tokyo Electron, ChangXin Memory Technologies, Yangtze Memory Technologies
- **Policy:** Export Controls, Subsidies, Economic Security
- **Impact:** Supply Chain, Capex, Order Book, Compliance

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Cite as: East Asia Brief, "Naura and SMEE Accelerate Domestic Tool Shipments to Chinese Fabs," August 28, 2026. https://eastasiabrief.com/semiconductors/naura-smee-accelerate-domestic-tool-shipments-chinese-fabs-22