China’s DUV progress—reports that Shanghai has begun building home-grown immersion deep‑ultraviolet lithography machines—sent shockwaves through markets this week but, analysts say, does not amount to the biggest threat facing industry leader ASML. Shares of the Dutch company tumbled over 8% intraday in the United States before settling 5.8% lower, after accounts emerged of a state‑backed effort to produce immersion DUV systems.
## Market reaction and reported production plans
According to the reports, the state‑backed Shanghai entity could produce roughly five immersion DUV units this year
