China has assembled a prototype extreme ultraviolet lithography machine capable of generating 13.5nm EUV light, the wavelength required for the world’s most advanced semiconductors. The device, completed in early 2025 at a facility in Shenzhen, has not yet produced a single working chip. Dutch company ASML remains the sole supplier of production-grade EUV machines, priced at roughly $250 million each. China targets functional chip production by 2028 through approximately $50 billion in investment from the Big Fund III, which could significantly shift global semiconductor supply chains.
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