END CHIP DEPENDENCE
โThe monopoly is under threat.โ
According to Reuters, China has successfully built a prototype extreme ultraviolet (EUV) lithography machine in Shenzhen โ the most critical and complex tool required to manufacture advanced semiconductor chips.
โ๏ธ Why this is huge:
Until now, ASML has been the only company in the world capable of producing EUV machines. Each unit costs nearly $250 million and is essential for making cutting-edge chips used by Nvidia, AMD, and manufactured by TSMC, Intel, and Samsung.
๐จ๐ณ What China achieved:
โข Prototype EUV machine capable of generating EUV light
โข Result of a 6-year government-backed semiconductor independence program
โข Compared by insiders to Chinaโs โManhattan Projectโ moment
โข Target timelines mentioned: 2028โ2030
โข Goal: fully China-made advanced chip production, end-to-end
๐ Current status:
The system is still in testing and has not yet produced working chips. However, sources indicate former ASML engineers and major players like Huawei are coordinating efforts across labs, suppliers, and research institutes.
๐ง Why markets should care:
If successful, this would reshape:
โข Global semiconductor supply chains
โข U.S. and allied export control leverage
โข Tech geopolitics and capital flows
โข Long-term valuations across AI, hardware, and manufacturing sectors
๐ The bigger picture:
China isnโt just reacting โ itโs building redundancy, sovereignty, and leverage. Markets tend to price these shifts after they become undeniable.
This is not a headline for today.
Itโs a signal for the next decade.
#China #US #Semiconductors #EUV #Geopolitics