China’s €37 billion move to end Europe’s chip dominance sends global markets into chaos

A €37 billion power move from China is sending shockwaves through the global semiconductor industry. As Beijing ramps up efforts to challenge Europe’s chip dominance, markets are already feeling the pressure. Could this be the beginning of a massive tech shift—or just another ambitious gamble? The real battle is only just starting… and the stakes couldn’t be higher.

The global semiconductor race has just reached a new level of intensity. China, long seen as a technology follower, is making a bold move to rewrite the rules of the industry. With a €37 billion investment, Beijing is accelerating its efforts to develop homegrown semiconductor technology, targeting the one area where it has been most vulnerable: photolithography.

For years, Europe, the U.S., and Taiwan have maintained their lead in chipmaking, thanks to companies like ASML, TSMC, and Intel. But with escalating trade restrictions and a growing realization that semiconductors equal power, China is now taking direct aim at the industry’s core technology. Could this be the beginning of a fundamental shift in global technological supremacy?

Semiconductor monopoly: How ASML holds the keys to the industry?
If there’s one company that controls the fate of advanced chip manufacturing, it’s ASML. The Dutch firm is the only supplier of EUV lithography machines, the cutting-edge technology needed to make the most advanced chips.

Without ASML’s machines, companies like TSMC, Intel, and Samsung would struggle to push chip technology forward. And guess who has been blocked from accessing these machines? China.

The West, led by the U.S., has spent years restricting China’s access, hoping to slow its technological rise. So far, it has worked—China has lagged behind in high-end semiconductor production, relying on older technology while countries like Taiwan, South Korea, and the U.S. advance. But that’s precisely what China is now trying to change.

China’s €37 billion counterstrike: Breaking free from Western control
Beijing isn’t just playing catch-up—it’s going all in. The €37 billion initiative is China’s biggest bet yet to develop its own lithography technology, a direct challenge to ASML’s near-monopoly.

This is not just about business; it’s about technological sovereignty. The global semiconductor industry has become a battlefield, where chips aren’t just products—they are weapons of influence. Controlling semiconductor production means controlling the future of AI, cybersecurity, and military technology.

And, China has already proven it can adapt and innovate despite restrictions.

Huawei shockwave: Why the Mate 60 Pro changed everything?
Last year, the world was caught off guard when Huawei’s Mate 60 Pro launched with a 7nm processor, even though the U.S. had cut off China’s access to advanced chipmaking technology.

How did China pull this off? The chip, produced by SMIC, was a sign that Beijing had quietly made progress, despite sanctions.

This was a turning point! It embarrassed Western policymakers who thought China’s chip industry had been crippled. Instead, it signaled that China’s determination to push forward was stronger than anticipated.

The €37 billion photolithography investment is an extension of that defiance. If China succeeds, it will no longer need ASML, TSMC, or any Western supplier for advanced chips. That would change the balance of power dramatically.

Can ASML stay ahead? Race for 2nm and beyond
While China ramps up its domestic technology, ASML isn’t slowing down. The company is developing EUV high-NA lithography, which will allow for sub-2nm chip production—far beyond what China can currently achieve.

This means that even if China builds its own lithography machines, they could still be generations behind ASML. But how long will that advantage last?

If history has shown anything, it’s that no technology lead is permanent. Japan once dominated the semiconductor industry, only to be overtaken by the U.S. and Taiwan. Could the same happen with China?

Big question: Will China’s bet pay off?
Here’s where things get interesting. China is pouring billions into developing its own semiconductor supply chain, from raw materials to finished chips. But, the West still holds the lead in chip design, software, and extreme precision manufacturing.

Can China catch up? Or is this investment just another moonshot that will take decades to pay off?

If China succeeds, it could undermine the West’s advantage and reshape global supply chains. If it fails, it could remain locked out of the most advanced semiconductor markets.

Arezki Amiri, Daily Galaxy, USA.