Chip stocks slide as China advances domestic lithography, memory production

Tech Hardware & Electrical Equipment Written by: Angela Harmantas 12:15 Mon 27 Jul 2026 --> Edited by: Emily Jarvie Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government. She earned a Bachelor of... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. ASML Holding NV ( NASDAQ:ASML XETRA:ASME ) View Price & Profile Chip stocks slide as China advances domestic lithography, memory production Published: 12:15 27 Jul 2026 EDT Shares of major chipmakers fell sharply on Monday after reports that a state-backed Chinese firm has begun mass-producing domestic deep ultraviolet (DUV) lithography machines. ASML Holding NV (NASDAQ:ASML, XETRA:ASME) dropped more than 7% as China's progress in domestic DUV production threatens the Dutch company's sales of older-generation tools in the region. Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) also fell 7.3% and Micron Technology Inc (NASDAQ:MU) was down nearly 5% by midday. China has been unable to obtain extreme ultraviolet (EUV) lithography machines from ASML, the sole global manufacturer, after export controls blocked access starting in 2019. But Chinese firms stockpiled a large fleet of older DUV machines before restrictions tightened, and companies including SMIC and Huawei have used multi-patterning techniques on those tools to produce near-frontier chips. The export control regime was designed to keep China several years behind at the leading edge. DUV multi-patterning is slower, lower-yield and more expensive than EUV production, but it is proving sufficient for near-frontier chips, unsettling policymakers and investors who had assumed China faced tighter constraints. China's domestic lithography advances bypass Western supply chains entirely, hitting equipment makers hardest. The declines also reflect broader valuation concerns, as high expectations tied to AI infrastructure spending have left sector rallies vulnerable to profit-taking amid shifting macroeconomic conditions. Continue reading