Citrini Analyst: China’s progress in DUV technology comes as no surprise; semiconductor equipment stocks like ASML have been oversold.

Citrini analyst Jukan said in a social media post that news of China’s progress in DUV (deep ultraviolet) lithography technology is not particularly surprising, as the market had already priced in relevant expectations. He noted that The Information’s related report only cited remarks made by a professor from a Chinese communications university at an internal meeting in June, without disclosing additional substantive details. Jukan argued that the sell-off of semiconductor equipment stocks, including those of Dutch giant ASML, triggered by the news is an overreaction. Earlier, The Information cited people familiar with the matter as saying that a company backed by Chinese state capital has begun mass-producing independently developed DUV lithography equipment, marking a key milestone in China’s semiconductor industry localization. The sources added that the company plans to produce around 5 domestic DUV lithography machines in 2026, and scale up to roughly 20 units in 2027. While this lags behind ASML’s delivery of 131 immersion DUV lithography systems last year, the mass production of domestic equipment is viewed by the market as a major breakthrough in China’s chip supply chain autonomy.