ASML Stock Drops 7% As China Claims DUV Chip Breakthrough

TLDR

• A Shanghai-based, state-backed Chinese company has begun mass-producing homegrown immersion DUV lithography machines for the first time.
• ASML fell over 7% on the news, erasing earlier pre-market gains of 2%.
• U.S. chip equipment stocks Applied Materials (AMAT), Lam Research (LRCX), and KLA Corp (KLAC) dropped between 4–7% in sympathy.
• China’s DUV machines are still early-stage — the company plans just 5 units this year and up to 20 in 2027.
• The development threatens ASML’s last major revenue foothold in China, where DUV sales replaced banned EUV business.

A state-backed Shanghai company has started mass-producing its own immersion DUV lithography machines — and Wall Street did not take it well.

ASML fell more than 7% on Monday after The Information broke the story. The Dutch chipmaking equipment giant had actually been up more than 2% before the open, lifted by easing Iran tensions and news that Nvidia is in talks to back a $250 billion OpenAI data center deal. That optimism evaporated fast.

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