According to sources close to Reuters, China has developed a working prototype of an EUV machine, which is currently undergoing testing. This domestic achievement involved Chinese companies successfully reverse-engineering ASML's EUV lithography scanners and creating a functional version using second-hand components. The new EUV prototype reportedly takes up an entire factory floor, comparable in size to modern High-NA EUV machines from ASML. Chinese companies are said to have obtained parts from older ASML machines on secondary markets. The Chinese government initially set a goal of producing working chips from the prototype by 2028.

Leading this initiative is the Chinese technology giant Huawei, which is working to establish a domestic AI supply chain to bypass foreign tech restrictions. In Guanlan, China, Huawei established a comprehensive facility for manufacturing semiconductors using 7 nm technology for its custom processors. Dissatisfied with SMIC's limited output capacity, Huawei has assumed control of the entire silicon production process, from sourcing materials and chemicals to wafer fabrication equipment and chip design. The company is making an unprecedented effort to develop every component of the AI supply chain domestically, from wafer fabrication equipment to model building, and now EUV scanners for more advanced nodes.