Scientists at a top-secret Chinese facility “built what Washington spent years trying to prevent,” according to a Reuters exclusive that reads more like a geopolitical thriller than news.
Reuters reported that scientists at a “high-security Shenzhen laboratory” have developed a working prototype of the specialized equipment used to manufacture semiconductor chips for weapons of war, smartphones, and, crucially, AI technology.
With the help of engineers recruited from ASML — a prominent Dutch semiconductor company with a “near monopoly” on the technology in question — Chinese scientists allegedly “reverse engineered” the brand’s extreme ultraviolet lithography machines, or EUVs.
The venture was described as China’s “Manhattan Project,” an ominous reference to the ultimately successful effort by the United States to develop nuclear weapons before the Axis powers did during World War II.
That conflict-driven arms race shaped the world that followed, as the State Department historian explained. In August, the New York Times said the pivotal moment was “arguably the main driver of American economic hegemony and prosperity in the eight decades since.”
The chips are just one part – albeit a vital one – of a rapidly emerging AI infrastructure, with resource-intensive data centers as another crucial support. On that front, the US has struggled mightily to integrate these energy siphon facilities into its rickety electrical grid.
Since January, the new administration has followed through on promises to lobbyists and abruptly halted almost all clean energy projects, even those that were nearing completion. Through 2025, US energy costs will increase by 13%, largely due to data center demand.
While that policy change was primarily viewed through an environmental lens, utility-scale solar power is undeniably cheaper than electricity generated using fossil fuels.
In September, the Wall Street Journal warned that the United States may be ceding critical economic advantages to China, citing AI and energy demand as key factors. That warning was echoed by economists and environmentalists alike as China lapped the United States in the scale of new and clean energy.
As the Center for Strategic and International Studies explained in September, the United States has long influenced China’s chip-making restrictions to maintain technological dominance.
An individual who spoke to Reuters on condition of anonymity suggested that the alleged development could change those tables.
“The goal is that China will eventually be able to make advanced chips on machines that are completely made in China. China wants the United States 100% kicked out of its supply chains.”
Get TCD’s free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD’s exclusive Rewards Club.