China today made its biggest move deep in the AI stack: it began producing its own chip-making machine and homegrown ASML. Yuliangsheng, tied to Huawei and SiCarrier, is now mass-producing immersion DUV lithography machines, the tools that make 7nm chips. their first deliveries are this year, to SMIC, the makers of Huawei’s Ascend chips, Hua Hong and CXMT, memory manufacturers. The China AI compute supply chain can be thought of as ASML : Yuliangsheng -> TSMC : SMIC -> Nvidia : Huawei. SMIC…