Yes......i agree. China should get started straight away with a EUV Project as there is no time to lose. Companies like Huawei need to produce the best Chips within China with preferably locally made equipment.
With the new 22nm DUV from SMEE, SMIC can produce Chips for Huawei without worry of sanction from US Government.
The biggest loser eventually will be ASML as its refusal to sell EUV in China & the competition from SMEE in DUV will reduce its market share in China. Same goes with US Chip production equipment vendors who will face greater competiton from local equipment makers.
In the case of SMEE, with the experience gained developing DUV Lithography machines, SMEE would be the best candidate to lead in developing a EUV Lithography machine in China. Like ASML, first DUV then proceed to EUV. The China Tech Big Fund should be giving SMEE funding for EUV development.
On another note, i noticed that Gigaphoton of Japan which makes EUV Co2 Laser light sources is expanding its presence in China. I believe Gigaphoton is interested in getting involved in any new EUV project in China. It currently does not supply its EUV light source to ASML.
I think the scenario how to put this together would be Central government ministry of science and technology forming a task force to supervise this EUV national level project with funding from National IC Big Fund.
1)The organization with the most EUV research is Chancun institute of Optics, ciomp.ac.cn. China academy of science. It's role is to supply the EUV mirrors and optical design.
2)SMEE is a commercial entity with the most expertise in putting everything together system wise. It's an integrator.
3)I would not trust Japanese parts into this. Rather have The Institute of Electronics, as a part of Chinese Academy of Sciences (CAS), started the gas laser research since early 60's of the last century. It's role is to provide laser produced EUV light source.
Those 3 organizations will work together funded by National IC big fund and supervised by central government Ministry of science and technology task force.
That how I envision China can pull this off.
first step is have a central government recognize EUV as national project and provide funding and setup special task force.