China Unveils Domestic EUV Lithography Prototype, Marking Major Semiconductor Milestone

China has reportedly developed a working prototype of an extreme ultraviolet (EUV) lithography machine, a significant breakthrough in the global semiconductor industry. According to sources familiar with the matter, the prototype is currently undergoing rigorous testing and represents a major step forward for China’s ambitions in advanced chip manufacturing.

Reverse-Engineering ASML’s EUV Technology

The achievement was made possible by Chinese companies successfully reverse-engineering EUV lithography scanners originally developed by ASML, the Dutch leader in semiconductor equipment. Leveraging second-hand components sourced from older ASML machines on secondary markets, Chinese engineers have assembled a functional EUV system. The prototype is said to occupy an entire factory floor, similar in scale to ASML’s latest High-NA EUV machines.

The Chinese government has set an ambitious target: to produce working semiconductor chips using this domestic EUV technology by 2028. This goal underscores China’s determination to achieve self-sufficiency in advanced chip manufacturing amid ongoing global technology restrictions.

Huawei Leads the Push for a Domestic AI Supply Chain

At the forefront of this initiative is Huawei, a leading Chinese technology company. Huawei has established a comprehensive semiconductor manufacturing facility in Guanlan, China, dedicated to producing 7 nm chips for its custom processors. Dissatisfied with the limited output capacity of SMIC, China’s largest contract chipmaker, Huawei has taken direct control of the entire silicon production process. This includes sourcing raw materials, chemicals, wafer fabrication equipment, and chip design.

Huawei’s strategy is to develop every component of the AI supply chain domestically, from wafer fabrication equipment to advanced model building. The company’s efforts now extend to EUV scanners, a critical technology for manufacturing chips at advanced process nodes.

Innovative EUV Light Source: Laser-Induced Discharge Plasma (LDP)

In early 2025, reports emerged of a new EUV machine undergoing testing at Huawei’s Dongguan facility. This system utilizes laser-induced discharge plasma (LDP) technology, which offers a novel approach to generating EUV light. The LDP method produces 13.5 nm EUV radiation by vaporizing tin between electrodes and converting it into plasma through high-voltage discharge. Electron-ion collisions within the plasma generate the precise wavelength required for advanced lithography.

This approach presents several technical advantages over ASML’s laser-produced plasma (LPP) technique. The LDP-based system features a simplified architecture, a reduced physical footprint, improved energy efficiency, and the potential for lower production costs. These innovations could position China as a competitive force in next-generation semiconductor manufacturing equipment.

Next Steps: Testing and Integration

The new EUV prototype is believed to be producing initial wafers for laboratory testing. In the coming months, the Chinese companies involved will focus on validating the machine’s performance. Key challenges include ensuring high-resolution patterning, stable throughput, and seamless integration with existing semiconductor manufacturing processes. Success in these areas will be crucial for China’s goal of achieving advanced chip production using domestic technology.