Would it be fair to say that China took the chance to rise to an economic superpower while the West was underestimating their speed in catching up?

For a long time, there was a belief that China could only "copy" and not "innovate." Many in the West thought China would just stay as a "low-end assembler" for toys and clothes. They didn't expect the rapid shift into high-end electronics and semiconductors. However, to make the smallest chips, you need EUV machines. Currently, only one company in the world, ASML (Netherlands), makes them. Without these, it's very hard for China to reach the absolute "cutting edge" of silicon. Is it true that China is still catching up?