Dutch lithography equipment maker ASML shares fell to their lowest level since early June after reports emerged that a Chinese state-owned company had begun mass production of semiconductor machines, which could pose a direct threat to the European giant's position.
Dutch lithography equipment maker ASML shares fell to their lowest level since early June after reports emerged that a Chinese state-owned company had begun mass production of semiconductor machines, which could pose a direct threat to the European giant's position.
The launch of its own equipment production in China was reported by Bloomberg, citing anonymous sources from The Information familiar with the situation.
It is noted that an unnamed Shanghai company has begun creating immersive deep ultraviolet lithography (DUV) systems. To implement this project, it has recruited development teams from other local companies, including specialists from Shanghai Yuliangsheng Technology.
The rollout of production is currently in its early stages. According to journalists, the Shanghai-based company aims to produce about five DUV machines by the end of this year, and next year to scale up production to 20 units. Officials from ASML declined to comment on this information, but the market reacted instantly - the company's shares, which had shown growth in the morning, fell by 8.3%.
Investor concerns about ASML's potential loss of monopoly in this segment of the semiconductor supply chain quickly spread to other market players. The decline affected chip equipment manufacturers in Europe and the United States: ASM International shares fell by 7.3%, BE Semiconductor Industries by 9.9%, Applied Materials lost 6.7%, and Lam Research by 7.9%.
DUV machines are a staple of the semiconductor industry, allowing them to print complex transistor patterns on silicon wafers. They are less complex than ASML’s advanced EUV systems, which are used to create cutting-edge chips. Due to export restrictions initiated by the United States, the Dutch company is prohibited from selling its flagship EUV machines and most advanced DUV models to China.
Despite these bans, in the second quarter of this year, China still remained the third largest market for ASML, purchasing equipment that is several generations behind the latest developments.
Recall that chip manufacturers' executives predict that the global memory chip market is facing a long-term shortage that will continue beyond 2030 and will directly affect the production of computers, smartphones, and cars.
Previously, the world's three largest manufacturers of random access memory (DRAM) were at the center of a lawsuit . Samsung, SK Hynix, and Micron are accused of colluding to regulate supply and artificially inflate prices in the market.
