China has been barred since 2019 from importing ASML's most advanced extreme ultraviolet (EUV) lithography machines, curbing the ability of its chipmakers to keep up with global leaders like Taiwan's TSMC in relying on ever-smaller manufacturing processes that make chips more powerful.

If proven, the innovation marks a significant milestone for Huawei, which has been cut off from advanced semiconductor technology since 2019.

Chip advance marks big step accelerating China’s semiconductor self-reliance push and promises leaps in AI computing power.