Reuters World News How China built its ‘Manhattan Project’ to rival the West in AI chips
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Dec 18, 2025 China has made a groundbreaking move by secretly developing a prototype AI chipmaker, a feat compared to the Manhattan Project. Meanwhile, tensions rise as the U.S. arms a major package to Taiwan. President Trump's holiday address highlights his achievements, while domestic concerns grow as Congress allows Affordable Care Act subsidies to expire. In entertainment news, Warner Bros opts for Netflix over a $100 billion takeover bid. Lastly, a Los Angeles court hears the shocking case of Nick Reiner accused of murdering his parents.
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China's Secret Chipmaking Breakthrough
- Reuters found China built a working prototype of an advanced chipmaking machine years ahead of Western estimates.
- The six-year, nationwide effort aims for strategic independence in producing chips for AI and weapons.
Reverse Engineering With Deception
- China recruited former Dutch engineers and had them reverse engineer the machines while feeding them fake ideas to conceal the work.
- The project used research institutes and Huawei coordination to develop domestic alternatives for restricted parts.
Size As A Solution
- The prototype is deliberately huge, filling nearly an entire factory floor, avoiding exact replication of the Dutch machine's size.
- Making it larger helped overcome earlier replication challenges and enabled a functional breakthrough.