China is intensifying its efforts to create a homegrown rival to ASML, the world’s dominant supplier of advanced chipmaking equipment. Semiconductor Manufacturing International Corp. (SMIC) is leading the push to manufacture 14-nanometer and even 7-nm chips using entirely Chinese technology, a strategic priority in Beijing’s latest five-year economic blueprint.

Engineers at SMIC are working around the clock in southeastern Beijing, aiming to advance China’s chipmaking capabilities without relying on foreign equipment. Under U.S. sanctions since 2019, SMIC’s progress on 7-nm technology is considered a breakthrough for China’s domestic industry. However, replicating the complex machinery of industry leaders like ASML, whose lithography systems are essential for cutting-edge semiconductor production, remains a formidable challenge.

China’s 14th Five-Year Plan calls explicitly for a self-sufficient semiconductor supply chain, pushing companies to develop indigenous tools even at the cost of reduced output quality or efficiency in the near term.

While SMIC’s progress is notable, industry analysts caution that China remains years behind global competitors. ASML’s extreme ultraviolet (EUV) lithography technology, vital for producing chips below 7-nm, remains out of China’s reach due to export restrictions and technical complexity. China’s chipmakers are forced to innovate alternatives, often using older technologies pushed to their limits.

Beijing’s determination reflects its desire to reduce vulnerability to Western export controls and secure its place in the global tech supply chain, particularly as the U.S. tightens restrictions on advanced semiconductor exports.

China’s drive for semiconductor independence is as much about national security as technological competitiveness. Analysts say the success or failure of efforts to build an “ASML of China” will shape the country’s future position in the global tech hierarchy. In the meantime, SMIC’s reliance on outdated tools underscores the gap China must close to achieve its ambitions.