# ASML shares drop 6.5% on China's DUV lithography production report Domestic production capability threatens ASML's market share in China. - **Source:** [The Next Web](https://brifing.si/source/afe24b20-b275-4c19-b9a6-8bb3c8babae7) - **Published:** 2026-07-27 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/2896fd16-f18b-4805-b128-0bde1efa9cb0 ## ASML stock decline ASML shares fell 6.5% after reports emerged of a Chinese company mass-producing DUV lithography machines. This development was interpreted as an unintended consequence of export controls. ## Erosion in Chinese market China's contribution to ASML's net system sales dropped from 19% to 14% quarter-over-quarter. Both export restrictions and Chinese chipmakers' alternative sourcing efforts contributed to this decline. ## Technological independence move China's domestic production of DUV lithography machines could undermine Western technology control strategies. These systems are critical for chips used in automotive and AI applications. ## Continued US pressure The MATCH Act would force the Netherlands and Japan to align DUV restrictions with US rules within 150 days. However, China's domestic production may reduce the impact of this pressure. ## EUV vs DUV difference While China cannot produce ASML's advanced EUV systems, DUV machines enable production of chips sufficient for most electronics. This won't close the technology gap but could shift commercial balances. ## Market dynamics reshaped ASML's stock reaction shows investors reassessing China revenue risks. Pricing now reflects not just regulatory threats but also domestic substitution risks. ## Sources covering this story - https://thenextweb.com/news/asml-slides-china-duv-lithography-tool-production — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._