The drop followed reports that China has begun scaling homegrown lithography systems, a development that could sharpen pressure on the Dutch chip-equipment maker in a strategically sensitive market.
ASML shares fell to their lowest level since June after China began mass producing homegrown immersion DUV machines. The move points to rising competitive and strategic pressure in lithography, the chipmaking process used to print circuit patterns onto semiconductors. For ASML, a key supplier of advanced semiconductor equipment, broader domestic production in China could matter because immersion DUV (deep ultraviolet chipmaking tools) sits in an important segment of the market below the most advanced extreme ultraviolet systems.