China's state-backed firm starts making immersion DUV tools, targeting 5 this year. ASML's dominance faces a new test. Alpha Score 64.
ASML shares fell about 5% in premarket trading Tuesday after reports that a Chinese state-backed company had started making immersion deep-ultraviolet (DUV) lithography machines. Reuters and The Information reported the development, citing sources familiar with the matter.
The move threatens ASML's near-monopoly on DUV machines, which are critical for producing most semiconductors. The Dutch company has seen a surge in orders as the AI boom drives demand for advanced chips. Shares closed nearly 6% lower on Monday.
China plans to manufacture five DUV machines this year and roughly 20 next year, the reports said. That compares with the 130 comparable machines ASML expects to ship this year. The Chinese machines are at an early stage and do not yet match ASML's technology, sources told the outlets.
ASML has been barred by US and Dutch regulations from shipping its most advanced extreme ultraviolet (EUV) lithography machines to China. The company's ASML stock page shows a moderate risk profile. The CFO told reporters this month that ASML is expanding capacity for its bus-sized EUV machines, including supply for Elon Musk's Terafab semiconductor project.
ASML's Alpha Score stands at 64, classified as Moderate.
ASML did not respond to a request for comment.
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