Posted on 07/27/2026 8:46:28 PM PDT by SeekAndFind
Semiconductor capital equipment stocks took a brutal U-turn on Monday.
Heading into the opening bell, the sector was riding a pre-market high. The optimism was fueled by easing geopolitical tensions in Iran and a blockbuster Wall Street Journal report revealing that Nvidia is in talks to guarantee a massive $250 billion in financing for an OpenAI data center project.
But that AI-driven euphoria evaporated instantly.
ASML erased early gains of over 2%—and dragged U.S. peers Applied Materials (AMAT), Lam Research (LRCX), and KLA Corp (KLAC) down with it—following a breaking report by The Information.
According to the report, a Shanghai-based, state-backed company has successfully started mass-producing homegrown immersion DUV (deep ultraviolet) lithography machines for the first time. The publication noted that this company assembled DUV development teams from other Chinese firms, including state-backed startup Shanghai Yuliangsheng Technology, to achieve the milestone.
This marks a critical leap in Beijing's push to build a localized chip supply chain and bypass Western technology.
The breakthrough arrives just as U.S. Congress advances the MATCH Act — bipartisan legislation aimed at blocking China from buying or servicing these exact DUV machines. If China can build them domestically, as The Information reports, the impending U.S. restrictions may lose their teeth entirely.
Here is the market logic driving the sell-off:
1. ASML: The Evaporation of a Cash Cow ASML is the undisputed global monopoly in advanced lithography. Because U.S. and Dutch export controls already banned ASML from selling its cutting-edge EUV (extreme ultraviolet) machines to China, Chinese chipmakers aggressively stockpiled ASML's older immersion DUV tools instead.
Those DUV sales became a massive revenue driver for ASML. If Chinese chipmakers can now buy viable DUV tools from domestic suppliers, ASML's largest remaining foothold in the region is fundamentally threatened.
(Excerpt) Read more at ca.finance.yahoo.com ...
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YAWN , ya right
China? A manufacturing process breakthrough?
NOPE.
China lies and steals. They rarely innovate.
F*** China.
Everything they have they stole from us.
I would buy the stocks of those companies amid this drop and reap their stocks surging when it turns out this report is a lie.
People losing their minds over a tempest in a teapot. They’re not doing anything massive or even new with this technology.
Atm this is really small scale stuff and not competitive at all at this point.
They may have the machine...but can they fabricate the phase shift masks that go with it,,,,just akn for a FRiend.
Take a CHICOM statement as a grain of salt. They wish the US no good.
Communists regimes rarely innovate as their system abhors freedom. They rely primarily on the theft of intellectual property and the corruption of the creators or regulators who sell the IP to them. My guess is that whatever the Chinese have “developed” is actually what was created elsewhere.
Why are we just hearing this in the West? I read about it over a month ago in Chinese and Asian news.
For a paltry $200k, Bill Clinton permitted his donor Bernie Schwartz to sell the Chinese MIRV technology. That act obviated a $4 trillion 40 year defense advantage bought by the US taxpayer. It’s why China quickly became a global threat.
🎯
Catching on to the manmade unintelligence bubble.
For a paltry $200k, Bill Clinton permitted his donor Bernie Schwartz to sell the Chinese MIRV technology.
—
No, it was the guidance system as I recall, not MIRV. The Chinese were permitted to recover a rocket that had the system.
But Bill Clinton gave them, for free, the miniaturized Klystron switch allowing them to make thermonuclear warheads small enough to fit on their ICBMs. It was a “good faith” gesture on Clinton’s part, showing his commitment to the Third Way [ a modern version of communism ], in the continuing exchange for campaign cash from China.
Seen this before, they will push this story till it come out that the Chinese company is lying and it will rocket back up.
That’s why I have mentioned many times in the past that we should never have taken China as a strategic trade partner. Let our secrets remain our secrets, don’t let China buy any land here ( that would have seemed to be a no-brainer)or have much of anything to do with them as long as they are a Communist country. Just seemed like common sense to me, but of course it is rather late now to do much about it. Anyone else agree?
POTUS seems to be ok with this as he is allowing 600k+ Chinese ‘students’ attend our universities...
The problem is not in our honest attempt to trade.
The problem is when people lie and steal.
All problems can be traced to lying and stealing, whether it was Clinton or the Chinese.
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