China has begun manufacturing domestically developed immersion deep ultraviolet lithography machines, a key chipmaking tool long dominated by Dutch supplier ASML, according to a report from US technology website The Information.

The deep ultraviolet (DUV) machines are expected to be delivered this year to leading mainland chipmakers, including Semiconductor Manufacturing International Corp, Hua Hong Semiconductor and ChangXin Memory Technologies, the report said on Monday, citing insiders.

ASML declined to comment. Its shares slipped more than seven percent, putting the stock on track for its worst day since June 8.

The report also weighed on the shares of companies exposed to the global chip equipment supply chain. BE Semiconductor Industries tumbled about 8.5 percent, Soitec fell five percent, while Infineon Technologies dropped nearly three percent. (Reuters)


Edited by Aaron Tam