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Chinese scientists have prototyped a machine capable of producing powerful AI chips despite Western efforts to prevent such advances, a Reuters investigation revealed.
The extreme ultraviolet lithography system, which etches tiny circuits onto silicon wafers, was built by former engineers of Dutch semiconductor giant ASML who worked under fake names and used parts from older ASML machines; one prominent China watcher suggested it was a “massive security failure” by Dutch authorities.
The project, which aims to produce working chips by 2028, marks a major breakthrough in Beijing’s quest for semiconductor self-sufficiency, described by some as China’s own Manhattan Project. Investors appear bullish on China’s homegrown processors: Shares in a chip startup soared 693% in its trading debut Wednesday.
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Still, the development doesn’t change much in the near term. China was always going to pursue chip independence, and it was going to reach this point eventually. It still can’t produce Nvidia-level chips and will likely rely on a mix of the most powerful American processors available to them and domestic technology, while the government continues to pump investments into its semiconductor industry. Whether the US’ export controls have bought it strategic time or accelerated China’s tech independence remains unclear.