ASML shares fell after reports claimed a Chinese company has begun producing immersion deep ultraviolet (DUV) lithography machines, but analysts said the development is unlikely to threaten the Dutch firm's market leadership, according to CNBC.
The report said the Chinese-made machines are expected to be supplied to domestic chipmakers, including Semiconductor Manufacturing International Corp. and Changxin Memory Technologies.
According to CNBC, analysts cautioned that China's technology still faces significant hurdles, including achieving competitive chip yields, proving long-term reliability and scaling production. ASML plans to manufacture around 130 DUV immersion systems next year, far exceeding China's reported production targets.
The report said export restrictions have already limited ASML's advanced equipment sales to China, reducing the immediate commercial impact.
Analysts also stressed that developing extreme ultraviolet lithography, the technology used for cutting-edge chips, remains far more complex and is still well beyond China's current capabilities.
Related Tweet:
Global chip stocks tumbled after reports that #China began mass-producing advanced lithography equipment, marking another step in #Beijing's drive for semiconductor independence.https://t.co/YzU9bgmzgC
— Al Mayadeen English (@MayadeenEnglish) July 28, 2026
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