U.S. Chip Stocks Slide After Report Claims China Has Achieved EUV Lithography Breakthrough
Several major U.S. semiconductor stocks fell sharply on Wall Street Monday following a report claiming a Chinese company has made a significant technological breakthrough that could accelerate the country’s semiconductor industry.
According to The Information, Chinese firm Shanghai Yuliangsheng has reportedly begun mass production of extreme ultraviolet (EUV) lithography machines—a technology previously mastered only by Dutch semiconductor equipment manufacturer ASML.
EUV lithography uses extreme ultraviolet light to etch microscopic circuits onto silicon wafers, enabling manufacturers to produce advanced chips with tens of billions of transistors on a processor the size of a fingernail.
If confirmed, the development could significantly reduce China’s reliance on ASML, whose advanced chipmaking equipment has been subject to export restrictions imposed by Western governments.
The report suggests the breakthrough could help China’s semiconductor industry accelerate the production of advanced processors, narrowing the technology gap with leading U.S. chipmakers and strengthening the capabilities of Chinese artificial intelligence companies.
Neither Shanghai Yuliangsheng, SiCarrier, nor Huawei immediately responded to requests for comment on the report.
Investors reacted swiftly to the news, with semiconductor shares posting broad declines. AMD fell by as much as 8%, Nvidia dropped nearly 5%, Micron Technology lost around 5%, and Intel declined approximately 3.7% during Monday’s trading session.
The reported breakthrough has not yet been independently confirmed, but it has raised fresh questions about the pace of China’s efforts to build a self-sufficient, advanced semiconductor industry despite ongoing export controls.
