The Next Era of Chipmaking: China’s Path Toward EUV Innovation

China has taken a step that many in the semiconductor world believed was still years away: the development and testing of a homegrown extreme ultraviolet (EUV) lithography prototype. Long considered the most complex machine humans have ever built, EUV systems have been exclusively produced by ASML in the Netherlands — until now.

A series of detailed reports reveal that China has quietly constructed a factory‑floor‑sized EUV prototype inside a laboratory in Shenzhen. This breakthrough marks a significant milestone in China’s pursuit of semiconductor self‑reliance and could reshape the global chipmaking landscape.

A Closer Look at China’s EUV Prototype

According to multiple sources, including Reuters‑based reporting, China completed its first EUV prototype in early 2025 and has already begun internal testing.

What the prototype can do

• Generates EUV light, the hardest part of EUV engineering

• Occupies an entire factory floor, similar in scale to ASML’s high‑NA EUV tools

• Currently not producing working chips, but early test wafers are being evaluated in laboratory settings

  
  

This is the first time any country besides the Netherlands has demonstrated the ability to generate EUV light in a functioning prototype.

How China Built It: A collaborative, Long -Term Technological Effort.

China’s progress in EUV technology reflects years of coordinated research, engineering, and investment. Often described as an ambitious national initiative, the project brings together scientists, engineers, and industry partners working toward a shared goal of strengthening the country’s semiconductor capabilities.

Rather than being framed solely as reverse engineering, the effort highlights how nations innovate in response to evolving technology landscapes.

China’s work in this area could be part of a broader strategy to build a more resilient and self‑sustaining semiconductor supply chain—something many regions around the world are also pursuing.

Technical Challenges Ahead

While the prototype is a major milestone, major engineering hurdles before commercial deployment needs to be overcome.

Remaining obstacles

• Optics supply chain: China is working to develop its own ecosystem for producing ultra high precision mirrors, a critical requirement for a complex EUV system.

• Source power: Generating EUV light is one thing — generating high‑power, stable EUV light remains a major challenge.

• Throughput: No evidence yet that the prototype can support high‑volume manufacturing.

• Contamination control: EUV systems require extreme cleanliness and nanometer‑level precision. This remains a challenge.

  
  

China’s prototype is a major milestone, it remains to be seen if it can be scaled into High Volume Manufacturing production tool.

Global Implications for chip landscape: A New Era of Collaboration and Competition

China’s progress in EUV technology has the potential to influence the semiconductor industry in meaningful ways. Rather than framing the development as a zero‑sum race, it can be viewed as part of a broader shift toward a more diverse and resilient global technology landscape.

1. A New Contributor to Advanced Lithography

If China succeeds in maturing its EUV technology, the world may see the emergence of an additional supplier in a field historically dominated by a single company. This could encourage healthy competition, foster innovation, and expand global capacity for advanced chipmaking.

2. Momentum for AI and High‑Performance Computing

EUV lithography is essential for producing cutting‑edge chips used in AI, data centers, and scientific computing. As China advances its domestic capabilities, it could accelerate progress in these fields—benefiting global research, industry growth, and technological exchange.

3. Toward a More Diverse Semiconductor Ecosystem

As China builds out its own supply chain, the world may gradually move toward a more multi‑polar semiconductor ecosystem. This diversification could reduce bottlenecks, strengthen supply‑chain resilience, and create opportunities for collaboration across different technology hubs.

Sources:

• TechRepublic: Inside China’s ‘Manhattan Project’: China Moves Closer to Chip Self‑Reliance With Secret EUV Prototype

• Taiwan News: China builds prototype EUV machine through reverse‑engineering

• NotebookCheck: China successfully develops EUV machine prototype

• Yahoo Tech: China may have reverse engineered EUV lithography tool in covert lab

• Exclusive: How China built its ‘Manhattan Project’ to rival the West in AI chips | Reuters