Report that Chinese state-owned enterprise has begun manufacturing DUV lithography equipment needed for semiconductor production

A Chinese state-owned firm is reportedly preparing to start making immersion DUV lithography tools for semiconductors.

Initial output is expected to be limited and aimed at domestic chipmakers such as SMIC and CXMT.

The report sent shares of ASML and related suppliers lower, including BESI, Soitec, and Infineon.

If China advances local production of advanced chipmaking equipment, it could intensify competition with ASML and reshape export controls and supply chains.