ASML Stock Falls Amid Reports of Chinese DUV Lithography Competition
ASML Holding (ASML) stock declined sharply following reports that a state-backed Chinese consortium, including Huawei and SiCarrier, has begun producing domestic immersion deep ultraviolet (DUV) lithography machines. The group plans to deliver five systems in 2026 for use by local chipmakers like SMIC. This development signals growing competition within China's semiconductor industry, which accounts for about 20% of ASML’s revenue and is a key market for the company. The news comes amid broader selloffs in AI hardware stocks this month, with ASML shares down nearly 17% from their recent high. The potential impact on ASML's business includes reduced orders for mid-tier systems as China accelerates its self-reliance goals and faces tightening export regulations like the proposed MATCH Act. Despite these challenges, analysts remain optimistic about ASML’s long-term prospects due to its monopoly in extreme ultraviolet (EUV) lithography technology. The company has also raised its full-year sales forecast to at least €43 billion, supported by strong global demand for AI infrastructure outside China.
Tickers: $ASML
Topics: ASML stock Chinese DUV lithography competition semiconductor industry