Stock market turmoil sheds stark light on the opaque AI economy
Global stock markets experienced volatility following China's entry into the deep-ultraviolet lithography market and the public listing of chipmaker CXMT. These developments threaten the long-standing dominance of Western semiconductor firms like ASML and Nvidia.
Why it matters
Signals a potential shift in the global semiconductor supply chain and highlights the fragility of AI-linked stock valuations.
A lithography machine at ASML in Veldhoven, the Netherlands. The Chinese have broken the Dutch company’s hold over deep-ultraviolet lithography, a technique essential to the computer chip supply chain. Photograph: Bart van Overbeeke Fotografie/AS/Reuters A lithography machine at ASML in Veldhoven, the Netherlands. The Chinese have broken the Dutch company’s hold over deep-ultraviolet lithography, a technique essential to the computer chip supply chain. Photograph: Bart van Overbeeke Fotografie/AS/Reuters AI (artificial intelligence) Analysis Stock market turmoil sheds stark light on the opaque AI economy Aisha Down , Dan Milmo and Graeme Wearden Investors scramble to make sense of a shock Chinese challenge to the dominance of western chipmakers
Even for the rollercoaster world of AI, last week was particularly volatile as investors scrambled to keep up with developments that threatened the dominance of the largest western chipmakers.
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