BN portfolio star ASML slides on report of China starting DUV tool production

A report that an unnamed Shanghai-based firm has started mass-producing deep ultraviolet lithography machines sent ASML shares down as much as 8.3%, dragging equipment peers like Applied Materials, Lam Research and Japan's Nikon and Canon lower too. The machines are far behind ASML's cutting-edge EUV kit, but any dent in China's reliance on Western chip tools feeds directly into the US-China tech rivalry. It's a reminder for South African investors that global tech exposure, whether through offshore unit trusts or pension allocations, remains hostage to a supply chain fight playing out thousands of kilometres away..By Sarah Jacob.ASML Holding NV shares slid to the lowest since early June after a report that a Chinese state-backed company has begun mass producing certain chipmaking machines, posing a potential threat to the Dutch firm’s sales.A Shanghai-based company has started making immersion deep ultraviolet lithography tools, the Information reported on Monday, citing unidentified people familiar with the matter. The report didn’t name the company. It has assembled development teams from other Chinese companies, including Shanghai Yuliangsheng Technology for this, the report said.A representative for ASML declined to comment. The stock fell as much as 8.3%, having traded higher throughout the morning in Amsterdam. Jitters quickly spread to chip-equipment peers around the world: ASM International NV dropped as much as 7.3%, BE Semiconductor Industries NV slid 9.9%, Applied Materials Inc. declined 6.7% and Lam Research Corp. fell 7.9%.In Tokyo, shares of fellow lithography equipment makers Nikon Corp. and Canon Inc. tumbled on Tuesday. Canon, which makes more mature equipment, slid as much as 6.3%, while Nikon, which makes immersion DUVs, fell 9.2% — the two companies’ sharpest declines in more than two months. ASML supplier Lasertec Corp.’s stock price fell as much as 12%..The unnamed Shanghai-based firm is seeking to make about five DUV machines this year and is targeting about 20 next year, the Information said. Progress on production remains at an early stage, according to the report.Investors are sensitive to any threat to ASML’s stranglehold on this part of the semiconductor supply chain, as well as signs of Chinese progress in producing chips in spite of US export controls. The Dutch company makes machines that can print intricate patterns of transistors on silicon wafers. DUV machines are often called the workhorse of the semiconductor industry and are less advanced than ASML’s sophisticated extreme ultraviolet lithography tools essential for manufacturing critical AI chips at scale..Read more:.FT: ASML forecasts bumper sales on back of AI boom.ASML has been banned from exporting its cutting-edge tools, namely the EUV lithography machines, to China as part of US-led export controls. It’s also restricted from selling its most advanced DUV machines to the country. The Asian nation was the company’s third-largest market in the second quarter — though the tools ASML ships there are eight generations behind the most sophisticated model. China’s Semiconductor Manufacturing International Corp began testing DUV kit made by Shanghai-based startup Yuliangsheng, according to a Financial Times report last year..© 2026 Bloomberg L.P..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox every morning on weekdays. Register here.Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.

BN portfolio star ASML slides on report of China starting DUV tool production

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