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

Reuters reports that Chinese scientists in Shenzhen have built a prototype EUV machine that is now being tested. The machine was put together by former ASML engineers, with parts recovered from older equipment and a wider state-backed effort involving Huawei and research institutes.

The article says the project aims to produce advanced chips inside China, but it has not yet made working chips. It also says major obstacles remain in optics and precision systems, and that while the government is targeting 2028, people close to the project think 2030 is more realistic.

Reading notes

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• The prototype was completed in early 2025 and fills nearly an entire factory floor.
• The machine is operational and generates extreme ultraviolet light, but has not yet produced working chips.
• Former ASML engineers helped reverse-engineer the EUV system, and some worked under aliases with fake IDs.
• China has relied on older ASML parts, secondhand markets, and some export-restricted components from Nikon and Canon.
• Huawei coordinates a broad network of companies and state research institutes across the country.
• The project is described by sources as China’s version of the Manhattan Project.
• The government target for working chips is 2028, but sources say 2030 is more realistic.
• China still faces major challenges in precision optical systems and light-source reliability.