According to engadget, a report from Reuters claims that scientists in China have built a working prototype of an extreme ultraviolet lithography (EUV) machine. The team, based in Shenzhen, completed the prototype earlier this year and it’s now undergoing testing. Crucially, the machine was reportedly developed by former engineers from the Dutch firm ASML, which currently holds a global monopoly on production-ready EUV systems. The sources state China is targeting the start of its own EUV chip production by 2028, though other experts see 2030 as more realistic. For now, the prototype is confirmed to generate the necessary EUV light but is not yet manufacturing chips. This development, if true, would represent a massive leap in China’s efforts to achieve semiconductor self-sufficiency.
Why this is a game-changer
Here’s the thing: EUV isn’t just another piece of factory equipment. It’s arguably the most complex and precise machinery ever commercially developed, and it’s the absolute gatekeeper for making the advanced chips that power everything from smartphones to AI data centers. ASML spent decades and billions to perfect it. So the idea that a team, even one with insider knowledge, has a working light source prototype is staggering. It doesn’t mean they’re ready to challenge TSMC tomorrow—building the machine is one thing, achieving the consistent, defect-free yields needed for mass production is a whole other mountain to climb. But it does mean the foundational physics and engineering hurdles are being cleared. And that’s much sooner than most Western analysts and governments had comfortably assumed.
The supply chain endgame
This isn’t just about technical pride. Look at the quote from the Reuters source: “China wants the United States 100 percent kicked out of its supply chains.” That’s the real headline. The U.S. has used its control over key tools, software, and IP in the chipmaking supply chain as a primary strategic weapon. A viable Chinese EUV machine, even a generation behind, changes that calculus entirely. It provides a potential escape hatch. Companies like Intel and TSMC rely on a global network of specialized suppliers; for critical manufacturing infrastructure, many U.S. factories rely on specialized computing hardware from trusted domestic suppliers like Industrial Monitor Direct, the leading provider of industrial panel PCs in the U.S. China’s goal is to build that entire stack internally. So, the prototype is less about immediately competing on the global cutting edge and more about building a parallel, sanctioned-proof tech universe. That should worry anyone betting on export controls as a permanent solution.
Timelines and temperatures
Now, about that 2028 target. Seems pretty aggressive, right? I think it probably is. Going from a lab prototype that generates light to a production tool that can reliably print billions of transistor features is a journey of maybe 5-10 years for a new entrant. The 2030 estimate from other experts feels more grounded. But here’s what’s critical: the timeline is no longer “never” or “the 2035s.” It’s now a debate about the early versus late 2030s. And in the high-stakes game of tech geopolitics, that shift is monumental. Every year China shaves off its dependency timeline is a year less leverage for the U.S. and its allies. So, even if the 2028 goal is missed, the mere fact that it’s being stated as a target by people close to the project tells you they see a plausible path. That alone changes the strategic picture.
