ASML Plunges on the Stock Market: The Price of China Starting to Make Its Own Lithography

ASML shares fell sharply after reports that a state-backed Chinese company is mass-producing immersion deep ultraviolet (DUV) lithography tools.

The selloff also hit other Western chip-equipment makers, including Applied Materials, Lam Research, and KLA.

Investors are increasingly worried that China may reduce its reliance on ASML by building out its own chip-making machinery.

Even so, ASML is still maintaining solid revenue and shipment guidance for 2026.