Jakarta, INTI – Reliance on foreign technology and export restrictions on advanced chips have long posed major challenges for China’s semiconductor industry. Amid growing geopolitical pressure and rising demand for advanced chips, Beijing has chosen technological self-reliance as a long-term solution. These efforts have begun to yield results after China successfully developed a prototype of an extreme ultraviolet (EUV) lithography machine. The breakthrough was announced in early 2025 and developed at a high-security facility in Shenzhen. This move signals China’s strong ambition to enter the era of 2-nanometer chip production.
A Strategic Breakthrough Amid Global Pressure
China’s semiconductor industry has reportedly made significant progress with the successful development of a domestically built EUV machine prototype. According to a Reuters report, the machine was completed in early 2025 and is capable of generating extreme ultraviolet light, a critical component in the manufacturing of advanced nanometer-scale chips.
This achievement is widely viewed as a strategic step by China to reduce its dependence on foreign technology, particularly amid restrictions on the export of advanced technologies imposed by the United States and its allies.
EUV: A Key Technology for Advanced Chip Manufacturing
EUV technology lies at the heart of next-generation chip production, including 5 nm, 3 nm, and even 2 nm nodes. To date, the global EUV machine market has been dominated by ASML, a Dutch company that remains the sole supplier of such machines to major chipmakers such as TSMC, Samsung, and Intel.
For years, China has sought access to this technology, but export sanctions have prevented ASML from selling EUV machines to Chinese companies. This situation has driven Beijing to intensify independent research and development efforts.
Developed by Thousands of Researchers in Shenzhen
The development of the EUV prototype involved thousands of researchers and engineering students. Reuters reported that part of the development team consisted of former ASML engineers, recruited with high compensation packages to accelerate mastery of core technologies.
The project has been carried out in high-security laboratories, underscoring the sensitivity and strategic importance of EUV technology for the future of China’s national industry.
Still in the Internal Testing Phase
Despite being regarded as a major achievement, China’s EUV machine prototype is not yet fully operational. The machine still relies on several legacy components manufactured by ASML and has not yet been able to produce fully functional chips.
At present, the machine remains in the internal testing phase and has not been directed toward mass production. Challenges such as light-source stability, machine efficiency, and production yield remain significant hurdles.
Targeting 2nm Chip Production
The existence of this EUV prototype strengthens China’s ambition to break into 2 nm chip production in the future. China’s largest semiconductor company, SMIC, is reportedly preparing advanced technological foundations after previously developing its N+3 process, which is claimed to be close to the 5 nm node.
The surge in chip demand driven by rapid advancements in artificial intelligence (AI) has further accelerated this agenda. Technology companies such as Huawei continue to seek secure domestic chip supplies through cooperation with SMIC.
Challenges and Global Impact
Although this progress has surprised many industry observers, experts believe China still faces major challenges. Production efficiency, yield rates, and the ability to manufacture chips at scale will require time and further development.
Nevertheless, this breakthrough demonstrates that technological restrictions have instead triggered national mobilization toward self-reliance. If domestically developed EUV machines can reach mass-production readiness, China could potentially reshape the global semiconductor industry landscape within the next decade.
Conclusion
China’s success in developing an EUV machine prototype marks an important milestone in its pursuit of technological independence in advanced chip manufacturing. Despite ongoing technical challenges, this move highlights Beijing’s determination to enter the 2 nm chip production era and strengthen its position in the global semiconductor industry.
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