ASML falls as Chinese consortium begins domestic DUV lithography deliveries

Wajeeh Khan Mon, July 27, 2026 at 1:33 PM PDT 2 min read

• ASML
• 0981.HK

ASML Holding (ASML) stock ended lower on July 27 following reports that a state-backed Chinese consortium involving Huawei and SiCarrier has reportedly begun producing domestic immersion deep ultraviolet (DUV) lithography machines.

The group plans to deliver five DUV systems in 2026 to local chipmakers, including SMIC. As investors reacted to rising Chinese competition, ASML fell through its 50-day moving average (MA), signaling that bearish momentum could persist in the near term.

ASML shares have been in a sharp downtrend amid a broader selloff in artificial intelligence (AI) hardware stocks this month, currently down nearly 17% from their recent high.

Source: www.barchart.com

Significance of Chinese Competition for ASML Stock

Rising domestic competition is bearish for ASML stock primarily because China remains a major market for the semiconductor equipment giant.

• Chinese sales make up roughly 20% of ASML's overall revenue, making the consortium a notable threat to its mid-tier system orders.
• While the target of five systems in 2026 is modest compared to ASML's massive global output, the news signals that Western sanctions are accelerating Beijing's self-reliance timeline.
• Proposed U.S. export legislation, such as the MATCH Act, threatens further regulatory crackdowns on DUV technology shipments.

This double-barreled pressure — rising local competition coupled with tightening trade bans — threatens to erode ASML's long-term addressable market in China sooner than Wall Street anticipated, dampening short-term valuation multiples.

Should You Buy the Dip in ASML Shares Today?

Despite the headline noise, ASML retains a monopoly over extreme ultraviolet (EUV) lithography, the essential technology required for manufacturing cutting-edge sub-3nm semiconductors.

• Domestic Chinese DUV systems remain years away from matching ASML's yield, reliability, and advanced High-NA EUV capabilities.
• Commercial chipmakers will still require months, if not years, of rigorous testing before Beijing's machines achieve high-volume manufacturing standards.

Investors should also note that ASML has recently raised its full-year total net sales forecast to at least €43 billion, reinforcing that the firm's long-term growth engine remains intact and backed by global AI infrastructure demand outside China.

What's the Consensus Rating on ASML Holding?

Wall Street remains bullish on ASML shares for the next 12 months.

• The consensus rating on ASML is "Strong Buy."
• The mean price target of approximately $2,350 indicates potential upside of more than 40% from current levels.

Source: www.barchart.com

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com.