China develops advanced chip prototype using reverse engineered EUV tech, boosting self-reliance and reshaping global technology competition dynamics

China is accelerating efforts to create a state-led big science model aimed at reducing reliance on foreign technology, with a strong emphasis on large-scale infrastructure, centralized coordination and industrial integration, reinforcing its broader push for China self-reliance.

A major development has shown that Chinese researchers have developed a prototype device that can produce advanced semiconductor chips. The system, which covers almost an entire factory floor, was finished in early 2025 and is currently being tested. Former engineers from ASML are said to have created it by reverse engineering advanced UV lithography techniques.

The development is a major step toward China's long-term goal of being independent in semiconductors, which President Xi Jinping has made a top priority. Because of its size and strategic value, the project, which was mostly carried out in secret in Shenzhen, has been likened to the Manhattan Project.

China has made major investments in research infrastructure, including the world's largest single dish radio telescope, the Five-hundred-meter Aperture Spherical Telescope, and other advanced facilities supporting industries including semiconductors, materials science and energy, strengthening China science technology capabilities.

China has 24 of the top 100 innovation clusters in the world, according to the World Intellectual Property Organization. With investments close to 785.9 billion dollars, the nation also overtook the US as the biggest spender on R&D in 2024.

In contrast to the cooperative cross-border model in Europe or the fragmented systems in the US, China's method unifies state planning, industry and research institutes into a single ecosystem. Scientific findings can be translated into commercial applications more quickly because of this arrangement. The evolving model is reshaping worldwide technological competition, with China emerging as a growing force in combining scientific research with large-scale industrial production.

Thus, Business Fortune is of the view that China’s integrated science strategy is rapidly strengthening its position in global technology leadership and innovation.

About The Author

Mahadharani Vijay is a writer specializing in digital marketing, electric and concept cars, gadgets, and media and entertainment. She focuses on turning emerging trends and innovations into clear, engaging, and accessible stories for both professionals and wider audiences.