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China's Chip Tech Copies ASML: Is the Crown Shaken?
28 Jul
Summary
- Shanghai firm builds machines similar to ASML's DUV lithography tools.
- Copycat kit lacks the technical advancement of ASML's original.
- ASML's market value dropped €55 bln due to investor fears.
A Shanghai-based company has initiated mass production of deep-ultraviolet lithography (DUV) machines, which bear similarities to the cutting-edge technology developed by ASML. This news led to a significant drop in ASML's market valuation, with its stock losing €55 billion and fueling investor apprehension about its leading position.
Despite the emergence of these comparable machines, the Chinese-made equipment is reportedly not as technically advanced as ASML's sophisticated DUV tools. The global demand for chips remains robust, a factor that is expected to bolster ASML's market standing.
ASML's shares experienced a notable decline, falling nearly 11% from their previous opening price. However, with the current booming chip demand, ASML's dominant role in producing critical chipmaking machinery appears to be safeguarded for the foreseeable future.
