China has taken a significant step toward semiconductor self-sufficiency with the completion of a prototype extreme ultraviolet lithography machine at a high-security laboratory in Shenzhen, according to a Reuters investigation. Finished in early 2025 and now undergoing testing, the massive machine is capable of generating extreme ultraviolet light, a core requirement for producing the world’s most advanced semiconductor chips used in artificial intelligence, smartphones, and modern weapons systems. The prototype, developed by former engineers from Dutch firm ASML, signals that China may be much closer to mastering a technology long monopolized by the West than previously believed.
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EUV lithography lies at the center of the global technology rivalry between China and the United States. Only ASML has successfully commercialized EUV machines, which are critical for manufacturing cutting-edge chips designed by firms such as Nvidia and AMD. Washington has spent years pressuring allies to block China’s access to these systems, imposing sweeping export controls since 2018. Despite these barriers, China’s prototype is operational, though it has not yet produced working chips. Officials involved reportedly aim for domestic chip production by 2028, while insiders suggest 2030 is more realistic.
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The project reflects a six-year state-led drive under President Xi Jinping to reduce reliance on Western technology. Often described by insiders as China’s “Manhattan Project,” it involves thousands of engineers, state research institutes, and companies such as Huawei. While major technical hurdles remain, particularly in optics and precision systems, the breakthrough underscores how export restrictions have slowed but not stopped China’s push toward advanced chipmaking independence.
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