In a high-security lab in Shenzhen, Chinese scientists have built a working prototype of an extreme-ultraviolet (EUV) lithography machine, a breakthrough Reuters reports could bring China closer to producing the advanced semiconductor chips that power artificial intelligence, smartphones, and military technology. Completed in early 2025, the machine fills almost an entire factory floor and was developed by a team of former ASML engineers who reverse-engineered the Dutch company’s highly guarded technology.
EUV machines are at the center of a technological Cold War. They use extreme ultraviolet light to etch circuits thousands of times thinner than a human hair onto silicon wafers, a capability long monopolized by Western firms. China’s prototype can generate the required ultraviolet light, but sources told Reuters it has not yet produced operational chips. The government has set an official target of 2028 for functional chips, though insiders say 2030 is a more realistic timeline.
The Shenzhen project is part of a broader government drive, described by sources as China’s version of the Manhattan Project, to achieve semiconductor self-sufficiency. Huawei plays a key coordinating role, overseeing thousands of engineers across state research institutes and private companies. Recruitment has targeted former ASML engineers, who were given signing bonuses, false identification, and instructed to work under aliases to maintain secrecy. These experts brought critical knowledge that made reverse-engineering the EUV machines feasible, according to Reuters sources.
China still faces substantial technical hurdles. The prototype is larger and less refined than ASML’s commercial machines, particularly in optical systems, which remain difficult to replicate. Parts have been salvaged from older ASML equipment and sourced from suppliers on secondary markets, sometimes through intermediaries to obscure the buyer. Restricted components from Japanese companies such as Nikon and Canon are reportedly integrated into the system, though the companies declined to comment.
The project has operated under strict confidentiality. Employees, including many recent graduates, are closely monitored while reassembling components, with performance tracked and bonuses awarded for success. Huawei staff involved in sensitive tasks reportedly sleep on-site during the workweek and have limited phone access, reflecting the national security sensitivity of the work.
Western authorities have long sought to prevent China from acquiring EUV technology. The United States pressured the Netherlands to block sales of new systems, while export restrictions have slowed China’s semiconductor ambitions and constrained production at Huawei. Yet Reuters’ reporting suggests the Shenzhen team has overcome some of these barriers, demonstrating China may be closer to achieving advanced chipmaking independence than analysts previously estimated.
While the machine has yet to produce functioning chips, the breakthrough underscores Beijing’s determination to dominate the next generation of semiconductor technology. The prototype represents a crucial step toward China’s goal of fully indigenous EUV capability and eliminating dependence on Western supply chains, potentially reshaping the global chip industry in the coming decade.
