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Europe’s most valuable company loses millions after what some analysts say ‘nightmare scenario’ for ASML due to China’s …
ASML is Europe’s most valuable technology company and one of the world’s biggest supplier to semiconductor industry
Shares of ASML, Europe’s most valuable technology company, fell sharply on July 28. The stock dropped more than 5% in early trading, wiping billions off the company’s market value. The decline came after reports that a Chinese state-backed company has started making deep ultraviolet (DUV) lithography machines, a market long dominated by the Dutch chip equipment maker. While analysts said China’s technology still lags behind ASML’s, the development is being seen as a potential long-term challenge to the company’s strong position in the <a href="https://absafricatv9491.live-website.com/why-the-global-ai-safety-agenda-cannot-see-african-harms/” title=”Why the Global AI Safety Agenda Cannot See African Harms”>global semiconductor industry as China continues its push to build advanced chipmaking equipment despite export restrictions.
China begins making DUV chipmaking machines
According to previous reports by Reuters and The Information, a Chinese state-backed company has started manufacturing immersion DUV lithography machines. The machines are still at an early stage and do not yet match ASML’s technology, the reports said, citing people familiar with the matter.China is expected to produce five DUV machines this year and about 20 next year, far below the roughly 130 comparable machines ASML expects to ship this year. However, the move marks another step in China’s efforts to reduce its dependence on foreign chipmaking technology.
Analysts call it a ‘nightmare scenario’ for ASML
The reports triggered a sell-off in ASML shares, with the stock falling nearly 6% on Monday, July 27 and dropping more than 5% in early trading on Tuesday, July 28.Some analysts described China’s progress as a “nightmare scenario” for ASML because the company dominates the global market for DUV lithography systems, which are widely used to manufacture semiconductors. Despite the latest challenge, demand for ASML’s equipment remains strong as the global AI boom drives investment in semiconductor manufacturing. The company recently announced plans to expand production capacity for its EUV machines to meet rising demand from chipmakers.
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