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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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.
Strategic Independence Over Commerce
- The effort is framed as strategic self-sufficiency, not commercial competition, likened to the Manhattan Project.
- China's goal is to remove US control from critical chip supply chains and secure technological independence.
Major US Arms Sale To Taiwan
- The US approved an $11 billion arms package to Taiwan to bolster asymmetric defenses against rising Chinese pressure.
- The package includes rockets, howitzers, anti-tank missiles and drones to strengthen Taiwan's deterrence.