this post was submitted on 31 Jul 2026
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ASML shares plunge following reports of Chinese breakthrough in chip manufacturing. China has begun producing advanced chip manufacturing equipment, the very same that made ASML a major player (www.volkskrant.nl)
submitted 22 hours ago* (last edited 22 hours ago) by inari@piefed.zip to c/technology@lemmy.world
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[–] Buffalox@lemmy.world 71 points 21 hours ago* (last edited 21 hours ago) (3 children)

Due to Western export restrictions, ASML is only allowed to export some of these machines to China; the most modern equipment is subject to a complete blockade.

In the past quarter, 14 percent of the machines that ASML sold went to China.

Play stupid games and win stupid prizes.

Preventing one of your biggest customers (China) from getting the equipment they need forces them to make it themselves.
Now China can make their own DUV lithography machines of similar quality to the ones they can get from ASML.
And obviously it won't stop there, China will continue to improve, and probably in a few years compete with ASML on the high end EUV equipment too.

[–] tburkhol@slrpnk.net 17 points 16 hours ago

Politicians, and even corporate C-suite, often confuse "cheaper to buy from the incumbent" with "incumbent has impossible-to-replicate technology," completely ignoring that it's way easier to invent something the second time.

Technology might have been a barrier in 1960's China, but they're a peer nation today.

[–] inari@piefed.zip 46 points 21 hours ago (1 children)

That and the NVIDIA ban on China both backfired spectacularly

[–] Buffalox@lemmy.world 22 points 20 hours ago

Absolutely, although China can't match Nvidia yet, they can now make chips that are good enough for 90% of the tasks.
Nvidia can no longer sell their second rate products developed specially for China anymore either.

[–] blackbeans@lemmy.zip 24 points 20 hours ago (1 children)

Worth mentioning that this export restriction was only enforced because of continuous pressure from the US.

[–] Buffalox@lemmy.world 8 points 13 hours ago

maybe we shouldn't allow USA to decide European foreign policy? Just a thought.