ASML shares fell 6.5% after a report that China has started mass-producing DUV lithography tools
TL;DR
ASML fell 6.5% after The Information reported a Shanghai company is mass-producing DUV lithography tools. China’s share of ASML sales dropped to 14% in Q2 from 19% in Q1.
ASML shares fell as much as 6.5% in Amsterdam on Monday after The Information reported that a Shanghai-based company has begun mass-producing immersion deep ultraviolet lithography tools. The machines are the type that ASML has been restricted from selling to China under Dutch and US export controls. If the report is accurate, it represents exactly the outcome the controls were designed to prevent: China building the capability domestically because it can no longer buy it.
ASML did not immediately respond to a request for comment. China’s contribution to ASML’s net system sales fell to 14% in the second quarter from 19% in Q1. The declining share reflects both the tightening of export restrictions and the possibility that Chinese chipmakers are...
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