Beijing Launches Secret ‘Manhattan Project’ for Semiconductor Independence

The evolution of technology has progressed from the invention of the wheel to the modern era where Artificial Intelligence (AI) challenges the very nature of human cognition. However, this global race for AI supremacy is no longer confined to the realms of software and clever algorithms; it has transformed into a high-stakes “Technological Cold War” between China and the Western alliance. At the epicentre of this confrontation is the control over advanced semiconductor production. An investigative report by Reuters has revealed that Beijing has initiated a clandestine, state-led “Manhattan Project” designed to break Western dominance. This high-risk venture focuses on mastering Extreme Ultraviolet (EUV) lithography, the essential process required to manufacture the microchips that power everything from next-generation AI models to advanced hypersonic weaponry.

Lithography involves etching intricate circuits onto silicon wafers at a scale thousands of times thinner than a human hair. Currently, the Dutch firm ASML holds a global monopoly on EUV technology, producing machines that weigh 180 tonnes and cost upwards of $250 million each. By leveraging this technological bottleneck, the United States has successfully coordinated with the Netherlands and Japan to block China’s access to these vital assets. Since 2019, ASML has been barred from selling its most advanced equipment to Chinese firms, and by 2022, Washington implemented even stricter export controls to isolate Beijing’s domestic semiconductor industry.

Comparison of Global Lithography Capabilities and Strategic Goals

In response to these sanctions, President Xi Jinping has placed the technology giant Huawei at the heart of a national effort to achieve self-reliance. Reports from a high-security research facility in Shenzhen indicate that Chinese scientists have developed a prototype light source for lithography—a breakthrough that defies previous Western estimates suggesting China was decades away from such a feat. While this experimental machine is currently larger and less efficient than those produced by ASML, it represents a tangible step toward breaking the blockade. Internal sources suggest that the project aims to achieve full-scale AI chip production between 2028 and 2030, a timeline that is significantly more aggressive than international observers had anticipated.

To accelerate this progress, China is employing “Grey Zone” tactics, including the recruitment of former ASML and Zeiss engineers with signing bonuses reaching up to $700,000. These experts are often required to work under conditions of total anonymity to protect the project’s secrecy. Furthermore, since new equipment is unavailable, Chinese intermediaries are scouring international auctions for second-hand parts. These components are then dismantled and reverse-engineered by teams of elite university students, who document every step of the process to create a digital blueprint for domestic replication. The final and most difficult hurdle remains the optical system; however, if China succeeds in mimicking the precision of German optics, it will effectively nullify the West’s primary leverage in the burgeoning AI era and shift the global balance of power.