- Global chip stocks fell sharply after China began mass-producing DUV lithography machines
- Nvidia, AMD, SK Hynix, and Micron shares dropped up to 9% on Wall Street
- China's progress may reduce reliance on Dutch ASML and U.S. suppliers long term
Global semiconductor stocks came under sharp selling pressure on Monday after reports that a state-backed Chinese company has begun mass-producing domestically developed deep ultraviolet (DUV) lithography machines, raising fresh concerns over China's technological self-reliance in chip manufacturing.
The report triggered fresh concerns that China's progress in semiconductor equipment could gradually reduce its dependence on Dutch chip-equipment giant ASML Holding NV and U.S. suppliers, potentially denting their long-term growth prospects despite years of export restrictions imposed by Washington.
The selling spread across leading chipmakers and memory manufacturers. Nvidia, AMD, SK Hynix and Micron plunged up to 9% during the trading hours at Wall Street.
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As of 12:41 p.m. EDT (9:11 p.m. IST), Advanced Micro Devices Inc. shares were down 6.74% at $486.75, while Nvidia Corp. declined 4.54% to $197.44.
Memory-chip makers also witnessed sharp losses. Micron Technology Inc. fell 4.11% to $883.10, while SK Hynix ADR tumbled 8.82% to $140.94, making it the biggest loser among the major semiconductor names tracked.
The broader weakness extended to semiconductor equipment companies after the report suggested China may have achieved a significant milestone in developing indigenous DUV lithography systems, technology that remains critical for manufacturing a wide range of advanced chips.
Market participants worry that if Chinese chipmakers increasingly adopt domestically produced lithography machines, demand for equipment supplied by ASML and other Western manufacturers could weaken over time.
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Investors also fear that China's technological progress could dilute the long-term effectiveness of U.S.-led export controls designed to restrict Beijing's access to advanced semiconductor manufacturing tools.
The reported breakthrough comes as China continues to invest heavily in building a self-sufficient semiconductor ecosystem amid escalating technology tensions with the U.S. and its allies.
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