Engineers of European Chip Giant ASML May Have Been Instrumental in China's Semiconductor Prototype, Challenging CEO's Claims

China has reportedly achieved a significant milestone in its pursuit of semiconductor independence by developing a working prototype of an advanced chip-making machine. This development potentially undermines predictions made by Western experts and challenges the dominance of ASML, the European chip giant, in EUV (extreme ultraviolet) technology.

The project, a six-year government initiative, was reportedly aided by former ASML engineers and could reshape global chip supply chains. The prototype was developed in a high-security laboratory in Shenzhen, representing a major step in China's efforts to produce cutting-edge semiconductor chips used in artificial intelligence, smartphones, and advanced weapons systems. According to Reuters, this achievement suggests that ASML's CEO may have underestimated China's progress in semiconductor technology.

While ASML CEO Christophe Fouquet stated in April that China would need "many, many years" to develop such technology, the Reuters report indicates that China might be closer to achieving chip independence than previously thought. The prototype, reportedly completed in early 2025 and currently undergoing testing, was allegedly built by former engineers from the Dutch semiconductor giant ASML through reverse engineering.

According to sources familiar with the project, the machine, which occupies nearly an entire factory floor, is operational and capable of generating extreme ultraviolet light. That said, the reality is a bit more complicated. it has not yet produced working chips. The Chinese government has set a goal of producing working chips by 2028, though some sources believe 2030 is a more realistic target. This timeline is still years ahead of the decade-long timeframe projected by many analysts. Sources have described the initiative as China's version of the Manhattan Project, with Huawei playing a key coordinating role among a network of companies and state research institutes involving thousands of engineers.

Reuters reports that China recruited recently retired, Chinese-born former ASML engineers, offering signing bonuses ranging from $420,000 to $700,000. One veteran engineer reportedly received a fake identification card along with his signing bonus, and discovered that other former ASML colleagues were also working under aliases to maintain secrecy. The project is part of China's semiconductor strategy, overseen by Ding Xuexiang, a confidant of Xi Jinping who heads the Communist Party's Central Science and Technology Commission. One source told Reuters that China's ultimate goal is to manufacture advanced chips using entirely domestically produced machines, eliminating reliance on the United States in its supply chains.

ASML currently holds a monopoly on EUV technology, which is essential for producing advanced chips used in AI and military systems. These machines cost approximately $250 million each. ASML has stated that it took nearly two decades and billions of euros to produce its first commercially available chips in 2019. ASML CEO Fouquet has consistently downplayed China's semiconductor capabilities, stating in December 2024 that China was 10 to 15 years behind the West in chipmaking. He reiterated in February 2025 that export controls remain effective.

The United States has blocked ASML from selling EUV systems to China since 2018, with restrictions expanding in 2022. ASML has confirmed that no EUV system has ever been sold to a customer in China. Despite these restrictions, China has been salvaging components from older ASML machines and sourcing parts through secondhand markets. Intermediary companies sometimes mask the ultimate buyer. Older ASML lithography equipment has been auctioned in China as recently as October 2025. ASML stated that it "vigilantly guards" trade secrets and has "successfully pursued legal action in response to the theft of trade secrets." The company won an $845 million judgment in 2019 against a former Chinese engineer accused of stealing trade secrets. That said, the reality is a bit more complicated. the defendant filed for bankruptcy and continues to operate in Beijing with Chinese government support, according to court documents. The Shenzhen prototype indicates that China's most significant breakthrough in the semiconductor race may have come from the engineers who built the technology that Western export controls were designed to protect.