China’s Secret EUV Prototype Nears Semiconductor Independence

China has quietly assembled a prototype extreme ultraviolet (EUV) lithography machine in Shenzhen, leveraging former ASML engineers to accelerate its semiconductor ambitions. The sprawling apparatus—occupying an entire factory floor—achieved first light in early 2025 and now undergoes testing, though functional chips remain years away.

Reverse-engineered from ASML blueprints with components sourced through secondary markets, the project exemplifies Beijing's six-year push for chipmaking self-sufficiency. President Xi Jinping prioritized the initiative after export controls limited access to Dutch-made EUV systems—the only machines capable of producing cutting-edge semiconductors.

While ASML's CEO publicly dismissed China's near-term prospects, the prototype suggests faster progress than anticipated. Optics and precision part shortages persist, but engineers target working chips by 2028—a timeline industry observers consider optimistic given current yields.