China eyes mastery of EUV lithography, bolstering AI chip ambitions, analysts say

Core Viewpoint - China's development of its own extreme ultraviolet (EUV) lithography machine could significantly enhance its technological position in the ongoing rivalry with the United States, particularly in the semiconductor sector [1][3]. Group 1: Development of EUV Technology - A prototype EUV lithography machine has been built by a team of former engineers from ASML, utilizing parts from older ASML machines acquired from secondary markets [2]. - The Chinese government aims to produce advanced integrated circuits using this EUV technology by 2028, although insiders suggest a more realistic target may be 2030 [5]. Group 2: Geopolitical Implications - If successful, China's mastery of EUV technology could greatly increase its geopolitical leverage over the US, particularly in defense applications [3][4]. - The advancement in EUV technology is seen as a critical factor in the US-China tech war, indicating that China is moving closer to semiconductor self-sufficiency ahead of Western expectations [3]. Group 3: Importance of EUV Systems - EUV systems are essential for producing powerful chips at 3-nanometer and smaller process nodes, which are crucial for advanced semiconductor applications [6].