BofA Downplays China's DUV Tool Production Report, Sees Only "Modest Threat" To ASML

ASML Holding NV shares in Amsterdam suffered their steepest decline in more than a year, breaking below the crucial 50-day moving average after The Information reported that a Chinese state-backed company had begun producing immersion deep-ultraviolet (DUV) lithography machines.

The Information did not cite the Shanghai-based company that plans to manufacture about five DUV machines this year and roughly 20 in 2027. The firm reportedly assembled teams from other Chinese chip-equipment firms, including Shanghai Yuliangsheng Technology.

ASML builds lithography machines that print transistor patterns onto silicon wafers. Its DUV machines are considered the workhorses of the semiconductor industry, producing highly advanced chips ranging from DRAM and NAND memory to logic and AI chips, as well as smartphone and automotive processors.

Only three weeks ago, we reported that China's leading memory-chip companies are quickly closing the technology gap with their South Korean chip-producing rivals faster than expected, raising concerns that expanding Chinese production could eventually spark a global memory glut.

First reported here on July 6

China CXMT Testing Production Line for Next-Gen Bonded DRAM, Closing Tech Gap With Korea "Far Faster Than Expected" READ MORE AT SOURCE »

Originally reported by ZeroHedge News

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