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China starts domestic production of DUV lithography tools; ASML and chip equipment stocks slide

A Chinese state-owned company has been reported to begin producing immersion deep ultraviolet (DUV) lithography equipment, a key tool for semiconductor manufacturing, raising tension in the global chip equipment market. The company is said to plan supplies to Chinese chipmakers including SMIC and CXMT. Commercial deployment is expected to take time, with limited output targets. ASML shares fell about 7 percent and other related stocks also declined.