How could Shanghai Yuliangsheng’s DUV lithography breakthrough affect US stocks?

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It sent major US semiconductor stocks lower, with AMD, Nvidia, Micron and Intel all falling on Wall Street.

Several major US chipmakers dropped after a report said Shanghai Yuliangsheng is making immersion deep ultraviolet, or DUV, lithography machines. AMD fell as much as 8 per cent, Nvidia nearly 5 per cent, Micron 5 per cent and Intel 3.7 per cent. The move came as traders reacted to the possibility that China could reduce its dependence on ASML and speed up its chip industry.
AMD saw the sharpest decline among the listed chip stocks
AMD fell as much as 8 per cent during the session. That was the biggest drop named in the market reaction tied to the report.
Nvidia, Micron and Intel also sold off
Nvidia slipped nearly 5 per cent, Micron fell 5 per cent and Intel dropped 3.7 per cent. The declines showed that the sell-off was not limited to one company, but spread across several major US semiconductor names.
The market reaction was linked to concerns about China’s chip progress
The report said DUV machine production could help China speed up processor development and production. It could also narrow the gap with advanced US players, which appeared to weigh on investor sentiment toward US chip stocks.
The breakthrough was tied to China reducing reliance on ASML
Producing DUV machines would allow China to free itself from dependence on ASML, which faces export restrictions outside the European Union. That possibility was the immediate backdrop for the drop in US semiconductor shares.

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How could Shanghai Yuliangsheng’s DUV lithography breakthrough affect US stocks?

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