China has reportedly made a significant stride towards semiconductor independence by developing a prototype machine capable of producing advanced chips, a technology previously exclusive to Dutch firm ASML. This breakthrough, achieved through reverse-engineering ASML’s extreme ultraviolet (EUV) lithography machines, could dramatically reshape the global tech landscape.
Key Takeaways
- A prototype EUV lithography machine, developed by Chinese scientists, is undergoing testing.
- The project reportedly involved former ASML engineers and utilized parts from older ASML machines purchased on the secondary market.
- China aims to achieve domestic production of advanced chips by 2028-2030, potentially years ahead of Western estimates.
- This initiative is a crucial part of China’s six-year government push for semiconductor self-sufficiency.
A Technological Cold War Milestone
Chinese scientists have successfully created a prototype machine that can generate extreme ultraviolet (EUV) light, a critical component for manufacturing advanced semiconductor chips. These chips are fundamental to technologies like artificial intelligence, smartphones, and modern weaponry, and have long been a cornerstone of the West’s military advantage.
The project, shrouded in secrecy, is said to have been spearheaded by a team of former engineers from ASML, the sole company currently mastering EUV lithography technology. These engineers reportedly reverse-engineered ASML’s complex machines, which are valued at approximately $250 million each, by disassembling older units acquired through intermediaries. Parts from other manufacturers like Nikon and Canon are also believed to have been incorporated.
Accelerating Towards Self-Sufficiency
While the prototype is operational and generating EUV light, it is not yet producing usable chips. However, its existence suggests China may be closer to achieving semiconductor independence than many analysts had predicted. ASML’s CEO had previously stated it would take "a very, very long time" for China to develop such capabilities.
Despite the progress, significant technical hurdles remain, particularly in replicating the high-precision optics essential for EUV machines. Nevertheless, the Chinese government has set an ambitious goal of commencing production of working chips on this prototype by 2028, though project participants consider 2030 a more realistic target. This timeline is still considerably faster than anticipated.
A National Priority
This clandestine EUV project in Shenzhen is a key component of a broader national semiconductor strategy, initiated six years ago and prioritized by President Xi Jinping. The initiative is reportedly overseen by Ding Xuesiang, a close confidant of Xi Jinping. Sources have likened the project’s scale and importance to the American Manhattan Project, which developed the atomic bomb.
The ultimate objective is for China to achieve complete self-reliance in advanced chip manufacturing, aiming to entirely remove the United States from its supply chain. Currently, ASML’s state-of-the-art EUV systems are only available to US allies, including Taiwan, South Korea, and Japan, highlighting the strategic importance of China’s domestic efforts.
Sources
Founder Dinis Guarda
IntelligentHQ Your New Business Network.
IntelligentHQ is a Business network and an expert source for finance, capital markets and intelligence for thousands of global business professionals, startups, and companies.
We exist at the point of intersection between technology, social media, finance and innovation.
IntelligentHQ leverages innovation and scale of social digital technology, analytics, news, and distribution to create an unparalleled, full digital medium and social business networks spectrum.
IntelligentHQ is working hard, to become a trusted, and indispensable source of business news and analytics, within financial services and its associated supply chains and ecosystems
China’s Secret Leap: Domestic Chip Production Nears Reality with Reproduced ASML Technology
China has reportedly made a significant stride towards semiconductor independence by developing a prototype machine capable of producing advanced chips, a technology previously exclusive to Dutch firm ASML. This breakthrough, achieved through reverse-engineering ASML’s extreme ultraviolet (EUV) lithography machines, could dramatically reshape the global tech landscape.
Key Takeaways
A Technological Cold War Milestone
Chinese scientists have successfully created a prototype machine that can generate extreme ultraviolet (EUV) light, a critical component for manufacturing advanced semiconductor chips. These chips are fundamental to technologies like artificial intelligence, smartphones, and modern weaponry, and have long been a cornerstone of the West’s military advantage.
The project, shrouded in secrecy, is said to have been spearheaded by a team of former engineers from ASML, the sole company currently mastering EUV lithography technology. These engineers reportedly reverse-engineered ASML’s complex machines, which are valued at approximately $250 million each, by disassembling older units acquired through intermediaries. Parts from other manufacturers like Nikon and Canon are also believed to have been incorporated.
Accelerating Towards Self-Sufficiency
While the prototype is operational and generating EUV light, it is not yet producing usable chips. However, its existence suggests China may be closer to achieving semiconductor independence than many analysts had predicted. ASML’s CEO had previously stated it would take "a very, very long time" for China to develop such capabilities.
Despite the progress, significant technical hurdles remain, particularly in replicating the high-precision optics essential for EUV machines. Nevertheless, the Chinese government has set an ambitious goal of commencing production of working chips on this prototype by 2028, though project participants consider 2030 a more realistic target. This timeline is still considerably faster than anticipated.
A National Priority
This clandestine EUV project in Shenzhen is a key component of a broader national semiconductor strategy, initiated six years ago and prioritized by President Xi Jinping. The initiative is reportedly overseen by Ding Xuesiang, a close confidant of Xi Jinping. Sources have likened the project’s scale and importance to the American Manhattan Project, which developed the atomic bomb.
The ultimate objective is for China to achieve complete self-reliance in advanced chip manufacturing, aiming to entirely remove the United States from its supply chain. Currently, ASML’s state-of-the-art EUV systems are only available to US allies, including Taiwan, South Korea, and Japan, highlighting the strategic importance of China’s domestic efforts.
Sources
Founder Dinis Guarda
IntelligentHQ Your New Business Network.
IntelligentHQ is a Business network and an expert source for finance, capital markets and intelligence for thousands of global business professionals, startups, and companies.
We exist at the point of intersection between technology, social media, finance and innovation.
IntelligentHQ leverages innovation and scale of social digital technology, analytics, news, and distribution to create an unparalleled, full digital medium and social business networks spectrum.
IntelligentHQ is working hard, to become a trusted, and indispensable source of business news and analytics, within financial services and its associated supply chains and ecosystems
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