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China Said to Build Prototype EUV Lithography Machine in Shenzhen

Sources describe a test system assembled by former ASML engineers using legacy components as part of a state-backed push for chip self-sufficiency.

Overview

  • Reuters reports the factory-scale prototype was completed earlier this year in Shenzhen and is undergoing tests that show it can generate extreme ultraviolet light, though it has not produced chips.
  • The effort reportedly relied on former ASML staff and older ASML parts sourced on secondary markets, with details still unverified publicly.
  • Officials in China are targeting chip production on the prototype by 2028, while outside experts suggest a more likely timeline is 2030.
  • The program is portrayed as a coordinated national initiative involving companies and state institutes, with Huawei cited as a key organizer.
  • Shares of chip-related companies including ASML, AMD, and Arm fell following the Reuters report on China’s EUV progress.