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AMSTERDAM, Netherlands – China’s move to develop a homegrown immersion deep ultraviolet (DUV) lithography machine is increasing pressure on Dutch chip equipment maker ASML, which has recently become Europe’s most valuable listed company after a sharp share price rise. Reuters reported that Shanghai Aishengna Electronic Technology Group, a little-known Chinese state-owned firm, is leading an effort to mass produce advanced DUV tools, which are key to modern semiconductor manufacturing and an essential part of the chipmaking supply chain. The initiative, first disclosed by tech news site The Information, coincides with U.S.-led export controls that already bar ASML from selling its most advanced extreme ultraviolet (EUV) systems and top-end immersion DUV machines to Chinese customers, tightening restrictions on one of ASML’s largest markets. AMSTERDAM, Netherlands – ASML, which dominates the global market for both DUV and cutting-edge EUV lithography tools used to print circuitry on artificial intelligence and other high-performance chips, saw its shares fall about 10% in two days after reports on China’s DUV push, wiping more than €60 billion off its market value. JPMorgan analysts said planned Chinese production of five immersion DUV tools this year and 20 in 2027 remains far below ASML’s 131 shipments of comparable systems in 2025, suggesting limited medium-term impact but rising long-term risk to China-related revenue. ASML expects around 20% of its 2026 sales, or roughly €9 billion, to come from China, even as some analysts warn that a credible Chinese rival in DUV could challenge its market grip and as U.S. lawmakers debate further curbs that could block remaining exports of immersion DUV tools to Chinese chipmakers.

Prepared by Christopher Adams and reviewed by editorial team.