Is China entering the 'DeepSeek era' for lithography machines? News of domestic DUV mass production triggers sharp plunge in global chip stocks.

According to The Information, citing people familiar with the matter, a Chinese enterprise backed by state-owned capital has begun mass-producing domestically developed DUV (deep ultraviolet) lithography machines, marking a key breakthrough in China’s semiconductor industry localization and substitution efforts. The company plans to produce around 5 domestic DUV lithography machines in 2026, scaling up to roughly 20 units in 2027. While this lags behind Dutch lithography giant ASML, which delivered 131 immersion DUV lithography systems last year, the mass production of domestic equipment is viewed by the market as a major milestone in China’s chip supply chain autonomy. The first batch of domestic DUV equipment is scheduled to be delivered to domestic chipmakers including SMIC, Hua Hong Semiconductor, and memory chip manufacturer Changxin Storage. As a representative of China’s DRAM industry, Changxin Storage is expected to become a key application scenario for domestic advanced semiconductor equipment. In response to the news, the global semiconductor market has seen sharp fluctuations. U.S. memory chip stocks fell across the board: SanDisk dropped around 12.9%, Western Digital fell about 8.6%, Seagate Technology declined roughly 6.9%, Micron Technology fell around 6.6%, and SK Hynix dropped about 8.6%. Dutch firms ASML and Besi saw their shares plunge over 8% at one point, triggering automatic trading halts; German semiconductor company Infineon also declined. Market analysts note that if domestic DUV equipment can operate stably in production lines of firms like Changxin Storage, it could further reduce China’s reliance on overseas key chip manufacturing equipment and reshape the global semiconductor equipment competitive landscape. The market reaction indicates that the progress of domestic lithography machine mass production has become a key variable affecting the valuation of the global semiconductor industry chain.