Europe's biggest tech giant slides 5% on reports of a Chinese rival encroaching on its turf
ASML shares dropped nearly 5% following reports that a Chinese state-backed firm has begun manufacturing DUV lithography machines. While the Chinese technology currently lags behind ASML's capabilities, the development signals a significant step in China's efforts to achieve semiconductor self-sufficiency.
Why it matters
ASML is a critical bottleneck in the global AI supply chain; any successful domestic competition from China could disrupt the current Western dominance in advanced chip manufacturing.
ASML CEO Christophe Fouquet with a Lego model of the company's EUV machine. Bloomberg/Getty Images ASML shares fell nearly 5% in premarket trading after reports that China had made a major chipbuilding breakthrough. Multiple outlets reported that a Chinese company had begun mass production of DUV lithography machines. ASML is the only company capable of building DUV machines at scale. China has been trying to catch up for years. Europe's most valuable company faces a new threat after China reportedly took a step toward matching its unique tech that's crucial to the global chip market. Shares in ASML, the only company on the planet capable of mass producing the extreme ultraviolet lithography machines used to build cutting-edge chips, slid nearly 5% in premarket trading on Tuesday after reports that a Chinese rival had made a breakthrough.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in