India's twin security dilemma: China's Manhattan Project and Dhaka's drift

Reuters report.The massive, factory-sized system has reportedly been dubbed China’s “Manhattan Project”, a reference to the top-secret US effort during World War II to develop the atomic bomb ahead of Nazi Germany in the late 1930s and early 1940s.The development has profound implications for the global balance of technological and strategic power. At its core, it can dismantle the West’s near-monopoly over the production of the world’s most advanced chips—those that power AI systems, smartphones, and modern military platforms.A 2024 study by the Australian Strategic Policy Institute pointed to a “stunning shift in research leadership over the past two decades towards large economies in the Indo-Pacific, led by China’s exceptional gains.“The US led in 60 of 64 technologies in the five years from 2003 to 2007.

In the most recent five-year period (2019-2023), it leads in just seven. China, which led in only three technologies in 2003-2007, now tops 57 of 64 technologies,” the report noted.While China’s EUV machine, undergoing testing, has yet to produce working chips in public view, the achievement of developing the system itself signals a major leap forward.

Significant challenges remain, including reliability, yield and scalability—areas where Western firms retain deep expertise. Yet the direction China is headed in is unmistakable.So how did Beijing manage it?According to Reuters, China recruited engineers who previously worked for Dutch multinational ASML (Advanced Semiconductor Materials Lithography)—Europe’s most valuable technology company.