Completed in early 2025 and now undergoing testing, the prototype nearly fills an entire factory floor. According to sources with knowledge of the project, it was built by a team of former engineers from Dutch semiconductor giant ASML, who reverse-engineered the company’s extreme ultraviolet (EUV) lithography machines. EUV machines, which use ultraviolet light to etch circuits thousands of times thinner than a human hair, remain a cornerstone of advanced chip production and are currently monopolized by Western companies.
While China’s machine is operational and can generate extreme ultraviolet light, it has not yet produced working chips. Analysts say replicating the precision optical systems central to EUV technology remains a major technical hurdle.
The prototype reflects years of focused effort under a six-year government initiative aimed at achieving semiconductor self-sufficiency, one of President Xi Jinping’s top priorities. Huawei has played a central role, coordinating thousands of engineers across companies and state research institutes. Sources describe the effort as China’s “Manhattan Project” for semiconductors.
“The aim is for China to eventually be able to make advanced chips on machines that are entirely China-made,” one source said. “China wants the United States 100% kicked out of its supply chains.”
The breakthrough was made possible in part by recruiting former ASML engineers, including retirees with intimate knowledge of EUV technology. Some recruits worked under aliases and were issued identification cards under false names to maintain secrecy. China has also sourced parts from older ASML machines on secondary markets and from suppliers in Japan, navigating international export restrictions that have barred Chinese access to state-of-the-art EUV systems.
ASML has long warned that replicating its EUV machines is a monumental task. Its first commercial EUV machine was released in 2019, nearly two decades after the company developed a working prototype. U.S. export controls have prevented ASML from selling advanced machines to China, and similar restrictions have slowed China’s progress for years.
Inside the Shenzhen lab, engineers are reverse-engineering both EUV and older DUV lithography components. Teams of recent graduates document every step of disassembly and reassembly, with successful work rewarded with bonuses. Sources say staff often sleep on-site, with strict restrictions on phone use, and are kept isolated from other teams to protect the project’s secrecy.
Despite challenges, China’s government aims to produce working chips on the prototype by 2028, though sources say 2030 is a more realistic target—still years ahead of prior analyst predictions. The development underscores the nation’s determination to achieve semiconductor independence and reduce reliance on Western technology amid a growing technological Cold War.
Huawei, the State Council, and Chinese authorities declined to comment on the project.