Chinese Secretly Producing State-of-the-Art Chips

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Chinese engineers in Shenzhen are implementing a project to create their own equipment for producing advanced chips, including those used in artificial intelligence (AI) models, Reuters reports following an investigation.

The design work is being carried out by Chinese specialists who previously worked for the Dutch company ASML. ASML manufactures ultraviolet (UV) lithography machines, which are essential for any chip manufacturing operation. The Financial Times confirms that the Chinese are acquiring more advanced spare parts for their older ASML machines on the used market.

A Reuters source describes the work at the secret Shenzhen lab as analogous to the Manhattan Project, which helped the United States develop the atomic bomb in the 1940s. “The goal is for China to eventually be able to produce advanced chips on machines entirely made in China,” explained one source. “China wants the United States to be completely cut out of its supply chain.”

China plans to produce AI chips entirely on its own machines by 2030.

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