"Artificial intelligence is a new way of doing software, and it requires a new type of computer." - Jensen Huang, CEO of NVIDIA
Shenzhen sauce
China’s EUV breakthrough: The monopoly on Advanced
Chipmaking challenged
China has reportedly completed a working prototype of an
extreme ultraviolet (EUV) lithography machine, marking a major milestone in
its long-term strategy to achieve semiconductor independence and reduce
reliance on Western technology. The development has been described by sources
as part of a state-led “Manhattan Project”-style initiative aimed at
breaking the West’s near-exclusive control over the most advanced chipmaking
tools.
Reverse engineering all the way
- In early
2025, Chinese scientists and engineers completed a prototype EUV
lithography system inside a highly secured facility in Shenzhen.
The machine has been operational in producing extreme ultraviolet light
- a core requirement for imprinting incredibly fine circuit patterns on
silicon wafers.
- The
project is part of a six-year government program focused on
achieving domestic capability in cutting-edge semiconductor technology.
Analysts and insiders compare it to a “Manhattan Project” for chips
due to its scale, secrecy, and strategic importance.
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Independence day
While the machine is operational, it has yet to produce working chips. Success is expected by 2030, a priority for President Xi Jinping to remove the United States from national supply chains. Achieving this goal would secure the nation's technological future.
Why EUV matters
EUV lithography is the only technology capable of
etching the tiny features needed for the most advanced chips (e.g., 5 nm and
below), which power modern AI systems, data centers, smartphones, and
advanced electronics. Until now, the Netherlands-based ASML Holding
has been the sole supplier of commercial EUV tools, each costing roughly $200–$370
million and requiring decades of specialized research and precision optics.
Current status of China’s prototype
- The
Chinese prototype is functional enough to generate EUV light and is
undergoing evaluation and testing, but it has not yet been proven in
high-volume chip production.
- Key technical hurdles remain - particularly precision optical components such as ultra-high-accuracy mirrors and specialized photoresists - which Western suppliers like Carl Zeiss currently dominate.
- China aims to start producing working chips using this technology between 2028 and 2030, according to current projections from sources and industry analysts.
The long march
Strategic implications
Summary
China is developing domestic extreme ultraviolet lithography machines in Shenzhen to bypass Western trade bans. By recruiting experts and salvaging parts, the nation aims for semiconductor independence. While technical hurdles remain, this prototype signals a shift in the global race for artificial intelligence hardware production.
Food for thought
How will Chinese chip independence impact global artificial intelligence security?AI concept to learn: Extreme Ultraviolet Lithography
Extreme ultraviolet lithography uses specialized light to etch microscopic circuits onto silicon wafers. This process is essential for creating the advanced chips that provide the processing power for artificial intelligence. It allows for more transistors on a single chip, increasing computing speed and efficiency.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
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