Jul. 27 at 8:53 PM
Lam Research shares fell sharply after The Information reported that a state-backed Shanghai company has begun mass production of domestically developed immersion DUV lithography machines, a technology previously dominated by Western suppliers. The systems are expected to be delivered this year to major Chinese chipmakers, including SMIC, Hua Hong Semiconductor, and ChangXin Memory Technologies, marking a significant step in China's push for semiconductor self-sufficiency.
The news weighed heavily on Lam Research, which generates roughly 34%-35% of its revenue from China, raising concerns that Chinese chipmakers could increasingly rely on local equipment suppliers. The stock was already facing pressure from elevated valuations, ongoing uncertainty around U.S. export controls, and recent insider selling.
The selloff spread across the semiconductor equipment sector, with ASML, Applied Materials, and KLA also declining.
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