ASML Shares Slump on Report China Plans to Mass-Produce Own Chip-Making Tools — Update

By Mauro Orru

ASML Holding shares fell following a report that China plans to mass-produce certain machines that are used in chip manufacturing, worrying investors that the Dutch group could lose market share in a country that accounts for a big chunk of sales.

Technology news publication the Information reported that a Shanghai-based company had started making a homegrown version of ASML's deep ultraviolet machines, or DUVs, that let chip makers print the tiny features that form the basis of semiconductors, part of efforts from Beijing to cut its reliance on foreign technology.

The report said China's advances in immersion DUV systems were still at an early stage and that the company, which it didn't name, planned to churn out about five DUV machines this year and roughly 20 next year, a small output compared to ASML's production capabilities.

ASML, which supplies chip-making machines to the likes of Taiwan Semiconductor Manufacturing Co., Samsung Electronics and Intel, shipped 131 immersion DUV systems last year, according to its latest annual report.

Shares in Amsterdam turned negative following the report, shedding more than 8% in afternoon trade as investors digested what a mass-produced Chinese version of its machines could do to sales. Shares of other semiconductor companies also fell sharply.

ASML declined to comment on the report, but executives previously said they expected sales in China to decline. Clients in the country represented 29% of ASML's sales last year and 36% in 2024, according to its annual report.

China has been making strides in semiconductor technology and artificial intelligence despite efforts from the U.S. to slow its advances. Washington has resorted to export controls to curb China's access to advanced semiconductors, but those prompted the country to look inward and encourage domestic firms to switch to homegrown hardware.

ASML said export restrictions were increasingly weighing on deliveries of its chip-making machines to China as specific licenses and approvals are needed before it can export its most advanced extreme ultraviolet systems, or EUVs, certain DUV immersion systems, and some other products, according to its annual report.

A Chinese version of DUV machines could be a setback for ASML, which earlier this month lifted its annual sales guidance for the second time and said it planned to boost output of its semiconductor-making machines by 30% in 2027 and another 30% in 2028 to meet growing demand for chips.

The race to build out AI infrastructure ushered in a scramble for the sophisticated chips needed to power data centers, with ASML reaping the benefits as chip makers need more of its machines to satisfy demand.

Shares of ASML, Europe's most valuable listed company, are up nearly 55% since January and have more than doubled over the past 12 months, riding a wave of investor fervor around AI that pushed global semiconductor stocks to new highs despite bouts of volatility in recent weeks as some investors worry that valuations and AI spending might be too high.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

July 27, 2026 12:01 ET (16:01 GMT)