- China developed a prototype EUV lithography machine for advanced chip production by early 2025
- The project, based in Shenzhen, aims to reduce reliance on Western semiconductor technology
- Former ASML engineers aided the secretive initiative described as a semiconductor “Manhattan Project”
China has developed a prototype extreme ultraviolet (EUV) lithography machine capable of producing advanced semiconductor chips, marking a major step in Beijing's efforts to reduce dependence on Western technology amid ongoing export restrictions imposed by the United States and its allies.
According to a Reuters investigation, the secretive project was developed inside a high-security laboratory in Shenzhen and has been described by sources as a technology-focused “Manhattan Project” aimed at achieving semiconductor self-reliance. The prototype machine was completed in early 2025 and is currently undergoing testing.
EUV lithography machines are among the world's most advanced semiconductor manufacturing tools, allowing companies to produce smaller, faster and more powerful chips used in artificial intelligence systems, smartphones and military technologies. The technology has historically been dominated by Dutch semiconductor equipment manufacturer ASML, whose machines are essential for producing the most advanced processors.
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China's prototype was reportedly developed with the help of former ASML engineers who brought technical expertise to the project and assisted efforts to recreate aspects of the highly restricted technology. The initiative forms part of a broader state-backed campaign involving Chinese technology firms, research institutions and government programmes to strengthen domestic chip production.
Huawei has reportedly played a central role in coordinating a network of suppliers and research organisations involved in the effort. The programme aligns with President Xi Jinping's strategy of reducing China's vulnerability to foreign technology restrictions and building an independent semiconductor supply chain, as per the Reuters.
However, the prototype has not yet produced commercially viable advanced chips. While researchers have successfully generated EUV light, major engineering challenges remain, particularly in precision optics, component reliability and manufacturing consistency.
Chinese officials reportedly aim to manufacture working chips using the technology between 2028 and 2030, although experts caution that achieving full production capability could take longer. Although China's broader semiconductor ambitions are well-documented, sources reveal that the Shenzhen EUV project has been developed entirely in secret.
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