AMD falls 8%, Nvidia nearly 5% after report of Chinese EUV chip breakthrough

Major US semiconductor stocks fell on Monday after The Information reported that Chinese company Shanghai Yuliangsheng had begun mass-producing extreme ultraviolet lithography machines.

AMD shares fell as much as eight percent, while Nvidia dropped nearly five percent. Micron declined five percent and Intel fell 3.7 percent.

EUV lithography uses ultraviolet light to etch microscopic circuits onto silicon, enabling the production of highly advanced processors.

According to the report, the technology had previously been mastered only by Dutch company ASML.

If confirmed, Chinese production of EUV machines could reduce the country’s chipmakers’ dependence on ASML, which is subject to export restrictions outside the European Union.

It could also help China accelerate the development and production of advanced processors used in artificial intelligence.

Shanghai Yuliangsheng did not immediately respond to AFP. SiCarrier and Huawei, two companies with links to the group, also did not immediately respond.