China Builds First Prototype EUV Lithography Machine to Built Advanced Semiconductors Chip

China has built a prototype Extreme Ultraviolet (EUV) lithography machine, a critical and tightly controlled technology required to manufacture the world’s most advanced semiconductors, according to a Reuters report. The development represents a major milestone in Beijing’s long-running effort to reduce dependence on Western chipmaking equipment and challenge one of the most entrenched monopolies in global technology.

The prototype was developed in Shenzhen and is capable of generating EUV light, a core requirement for fabricating chips at leading-edge process nodes. While the system has not yet produced working chips, its existence signals that China has crossed a technological threshold once considered out of reach. Sources familiar with the project say testing is ongoing, with 2028 to 2030 cited as tentative targets for achieving usable chip output.

Breaking a Global Monopoly

Until now, ASML, the Dutch semiconductor equipment maker, has been the only company in the world to successfully commercialise EUV lithography. Its machines, priced at roughly $250 million each, are indispensable for manufacturing the most advanced chips designed by Nvidia and AMD, and produced by TSMC, Intel, and Samsung.

EUV lithography is widely regarded as one of the most complex engineering achievements in industrial history. The technology uses light with a wavelength of 13.5 nanometres to etch microscopic patterns onto silicon wafers, enabling the production of processors that power artificial intelligence, data centres, and next-generation electronics. For years, strict U.S. and allied export controls have prevented ASML from selling EUV systems to China, effectively blocking Beijing from the leading edge of chip manufacturing.

A Six-Year National Effort

According to Reuters, China’s EUV breakthrough is the result of a six-year, state-backed program focused on semiconductor independence. People involved in the effort have compared it to China’s “Manhattan Project”, a reference to the secret U.S. wartime program that built the atomic bomb, underscoring both the scale and strategic importance of the initiative.

The program reportedly united universities, government research institutes, equipment suppliers, and major technology firms. Huawei is said to have played a central coordinating role, aligning research across laboratories and suppliers. Sources also told Reuters that former ASML engineers helped reverse-engineer parts of the system, highlighting the depth of expertise China mobilised for the effort.

Progress, but Not Yet Parity

Despite the significance of the prototype, China remains several years away from achieving full parity with ASML’s commercial EUV machines. The current system is described as experimental, lacking the reliability, precision, and throughput required for mass production of advanced chips.

Industry experts note that ASML spent nearly two decades and tens of billions of dollars developing EUV technology, working with highly specialised partners such as Germany’s Zeiss for optics. Replicating that ecosystem, analysts say, is as challenging as building the machine itself.

Still, China’s ability to generate EUV light domestically is viewed as a major technical achievement, given the extreme complexity of the process. Even partial success could allow China to gradually narrow the gap at advanced process nodes.

Strategic and Geopolitical Impact

The breakthrough carries significant geopolitical implications. Advanced chips are now central to economic competitiveness, AI development, and national security. The United States has relied on export restrictions and coordination with allies to limit China’s access to advanced semiconductor tools. A domestically produced EUV system, even years from commercial use, could weaken the long-term effectiveness of those controls.

One person familiar with the project told Reuters that China’s ambition goes beyond technological capability. “The aim is for China to eventually be able to make advanced chips on machines that are entirely China-made,” the source said, adding that Beijing wants the United States completely removed from its semiconductor supply chains.

The Road Ahead

For now, China’s EUV machine remains a prototype, not a production-ready tool. Major technical hurdles still stand before it can support large-scale manufacturing of cutting-edge chips. Even so, the development highlights how U.S. sanctions and technology restrictions have accelerated Beijing’s push toward self-reliance.

If successful, the program could reshape the global semiconductor industry over the next decade. While China may not immediately match Western leaders, its progress suggests that technological isolation has driven a determined and increasingly sophisticated effort to close one of the most critical gaps in modern industry.