Reuters exclusively reported that Chinese scientists developed a prototype for an Extreme Ultraviolet (EUV) lithography machine. This technology is critical for producing advanced semiconductors, a sector currently monopolized by ASML. Former ASML engineers built the prototype, which was completed in early 2025 and is now undergoing testing.
This development suggests China is closer to achieving semiconductor independence than previously anticipated. The news represents a significant escalation in the technological rivalry between the West and China, potentially disrupting the global technology landscape.
ASML sits at the center of this conflict, facing restrictions on selling advanced equipment to Chinese firms. ASML stated it vigilantly guards its trade secrets, but the report highlights the challenge of enforcing non-disclosure agreements across borders. If China successfully commercializes the technology, the long-term impact on ASML’s market share and pricing power could be substantial.