Shanghai Micro Electronics Equipment (SMEE) has won a government procurement contract to supply a step-and-scan lithography machine, according to a notice published on the China Government Procurement Network on Wednesday, in a deal valued at about 110 million yuan ($15.5 million).

The procurement notice showed that SMEE was awarded the contract for one step-and-scan photolithography system under project code zycgr22011903, with a transaction price of 109.99985 million yuan.

Founded in 2002, Shanghai-based SMEE develops and manufactures semiconductor, advanced manufacturing and high-end intelligent equipment. Its shareholders include Shanghai Electric Group, Shanghai Technology Venture Capital, Shanghai Guangwei Qinghe Investment Partnership and Zhangjiang Haoran Venture Capital, corporate registry data from Tianyancha showed.

Zhangjiang Haoran Venture Capital is a wholly owned unit of Zhangjiang Hi-Tech Park Development Co Ltd, a Shanghai-listed company.

Shares of Zhangjiang Hi-Tech surged on the news, jumping more than 8% in afternoon trading before paring gains to close up 4.81%.

Step-and-scan lithography is a hybrid technology combining features of projection scanning lithography and step-and-repeat exposure. It synchronizes the movement of the photomask and wafer during exposure, allowing for a standard exposure field of 26 mm by 33 mm and enabling multiple chips to be exposed at once.

The technology also supports real-time focus adjustment during scanning and is suitable for semiconductor manufacturing processes below 0.25 microns, with broad application at the 0.18-micron node and more advanced process technologies.