The End of Monopoly? China's "Manhattan Project": First Look at Domestic EUV Lithography Machine

According to the latest Reuters report, China has made a major breakthrough in the most advanced semiconductor field: successfully developing a prototype of an extreme ultraviolet (EUV) lithography machine for producing cutting-edge chips.

1. Challenging ASML's Monopoly
For a long time, Dutch giant ASML has been the only company in the world capable of producing EUV machines. These machines cost up to $250 million each and are indispensable for manufacturing Nvidia and AMD's advanced chips.

• R&D Background: China's six-year "government plan" focused on self-sufficiency is bearing fruit.
• Strategic Level: Industry insiders compare this to China's version of the "Manhattan Project."

2. Huawei's Role and R&D Details
This is not just corporate innovation but a national-level mobilization:

• Coordination: Huawei is reportedly acting as the coordination hub between labs and suppliers.
• Core Breakthroughs: Former ASML engineers assisted in reverse-engineering some components, aiming to rebuild a semiconductor ecosystem within a closed system.
• Current Status & Goals: The prototype can already generate EUV light and is now entering the testing phase, with commercialization targeted between 2028 and 2030.

3. The "Boomerang Effect" of Western Sanctions
The article highlights an uncomfortable truth: export controls have not halted progress but accelerated self-reliance.

• Forced Internalization: If China could have purchased ASML machines, it might not have pursued such intensive R&D.
• Narrowing the Gap: While ultra-high-precision optics and Zeiss-level mirrors remain major challenges, the assumption of a "decades-long gap" has been shattered.

4. A Complete Game-Changer
Once China possesses EUV, even if initial efficiency is lower, the issue shifts from "having or not" to "speed of iteration."

• Eliminating Bottlenecks: China aims to integrate design, manufacturing, and packaging into a single system, completely removing U.S. supply chains.
• End of Monopoly: History shows sanctions cannot permanently block a major nation's industrial will. This tech war is accelerating the end of an old era.

$Taiwan Semiconductor(TSM.US) $ASML(ASML.US) $Applied Materials(AMAT.US) $Lam Research(LRCX.US) $SMIC(00981.HK) $Cambricon(688256.SH) $ZJHTC(600895.SH) $Focuslight(688167.SH) $Mloptic(688502.SH) $NAURA(002371.SZ)

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