China Allegedly Built Secret EUV Prototype For Independent Chip Manufacturing

A new Reuters report says that China has completed a prototype extreme ultraviolet (EUV) lithography machine capable of producing the most advanced chips used in AI, high-end smartphones, and modern weapons, a breakthrough that could reshape the balance of power in global chip manufacturing.

The prototype was built at a high-security facility in Shenzhen by former semiconductor giant ASML employees, who allegedly reverse-engineered the company's EUV machines, and relies on older ASML components acquired through secondary markets. The Chinese government apparently has set a target of producing functional chips using the system by 2028 or 2030.

This is an extraordinarily complex technology. ASML's machines are indispensable for manufacturing the most advanced chips designed by companies such as NVIDIA and AMD, and produced by leading chipmakers including TSMC, Intel, and Samsung. It took nearly two decades and billions of euros in research and development before ASML delivered its first commercially available chips.

China's prototype isn't making chips yet, but it's said to be capable of generating the extreme ultraviolet light needed for manufacturing. Of course, this isn't just a technical milestone, it also has big geopolitical consequences. However, while the report, if accurate, suggests China is closer to EUV technology than many thought, making chips with it is still years away.

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