The generation of stable, high-intensity extreme ultraviolet (EUV) radiation is pivotal for advancing photolithography, materials science, and quantum technologies. Here, we present a novel microwave discharge plasma (MDPP) system integrated with a capillary-based magnetic confinement architecture, achieving efficient EUV production at \(13.5 nm\) . A \(1 kW\) , \(2.45 GHz\) microwave source excites xenon plasma within a cylindrical TM011 mode resonator bisected by a quartz disc, with a \(2 mm\) nozzle directing plasma into a double-layer quartz capillary (radius: \(2 mm\) ; length: \(8 cm\) ). Plasma transport occurs at operating pressures of 50–200 mTorr, sustained by continuous or pulsed xenon injection. To suppress radial losses and instabilities, a cryogenically cooled high-temperature superconducting (HTS) coil, comprising \(700\) turns and delivering a \(5 T\) axial magnetic field, is employed around the capillary. This configuration minimizes plasma-wall interactions, stabilizes the density profile, and enhances radiative efficiency. Spectroscopic analysis, spanning 10–1000 nm with \(<0.05 nm\) resolution, reveals dominant EUV emission from 4d–4f transitions in Xe8+ to Xe12+ ions. The system achieves EUV power outputs approaching \(100 W\) , with energy conversion efficiencies exceeding \(10\%\) , enabled by non-equilibrium ionization dynamics and steep plasma density gradients upon expansion. Numerical simulations incorporating electromagnetic, plasma, and heat transfer modules confirm enhanced energy absorption and electron acceleration due to optimized cavity-field coupling. This MDPP-based capillary system demonstrates a scalable, low-maintenance, high-brightness EUV source, offering transformative potential for next-generation semiconductor manufacturing and advanced photonics research.