SHENZHEN: China has taken a significant step toward ending Western dominance of advanced semiconductor manufacturing by building a prototype extreme ultraviolet (EUV) lithography machine, a cornerstone technology for cutting-edge chips that power artificial intelligence, smartphones and advanced weapons systems.
The machine, developed in a high-security laboratory in Shenzhen, can generate EUV light, an essential capability previously monopolized by the Dutch firm ASML and tightly controlled by U.S. and European export restrictions. It has yet to produce finished chips, but engineers say it represents a breakthrough in a multibillion-dollar state-backed initiative Beijing has pursued since 2019.
The project, described internally as akin to a "Manhattan Project" for semiconductors, involved recruiting former ASML engineers who reverse-engineered key elements of Western designs. According to sources, some worked under aliases in China and received high bonuses to maintain secrecy.
One source familiar with the effort told Reuters, "The aim is for China to eventually be able to make advanced chips on machines that are entirely China-made."
While the prototype remains larger and less refined than ASML's commercial systems and still lacks the precision optics needed for production, its successful generation of EUV light challenges long-held assumptions about China's technological lag. ASML's CEO had previously asserted that China was "10 to 15 years behind" the West without access to EUV tools, a timeline now being reassessed.
China has set an ambitious goal to produce chips with domestic tools by 2028, though analysts say achieving that target could slip closer to 2030 given the complexity of the technology.
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