Micron slides in US trading
Shares of Micron Technology fell about 5% during the July 27 US trading session as a wave of selling hit semiconductor and AI-linked stocks, according to multiple July 28 reports. The sell-off was triggered by reports that a Shanghai-based enterprise has begun mass-producing immersion deep ultraviolet (DUV) lithography machines, a category historically dominated by ASML and a small group of foreign suppliers. A separate July 28 report cited a smaller 2.25% close-to-close decline for Micron, with the variation likely reflecting different measurement windows rather than a contradiction in direction.
The Philadelphia Semiconductor Index gave up early gains to fall sharply. US equipment makers Applied Materials, Lam Research and KLA Corp were dragged down alongside ASML, which dropped more than 7%. AMD fell roughly 7%, and Nvidia, a key buyer of SK Hynix high-bandwidth memory chips, also dropped about 5%.
Asian markets and supply-chain reaction
The sell-off spread into Asia on July 28. Singapore-listed suppliers to Applied Materials led the declines, with Frencken falling as much as 9.6%, UMS as much as 8.9%, AEM as much as 9.6% and CSE Global as much as 5.4%. The drops came as Japan-based lithography equipment makers Nikon and Canon also fell sharply on the China DUV news.
In South Korea, the KOSPI triggered a sell sidecar after a more than 5% plunge on July 28, with Samsung Electronics down 6.89% and SK Hynix down 8.53%. A Korean market report attributed part of the weakness to declines in US semiconductor shares such as Micron amid uncertainty from China. Foreign investors net sold roughly 330 billion won while retail investors net bought about 457 billion won, absorbing supply.
China DUV breakthrough raises competitive pressure on memory makers
The development underscores China's push toward semiconductor self-sufficiency despite years of US-led export restrictions, a Connecticut-based tech industry observer told China Daily. The outlet noted that Chinese memory chipmakers CXMT and YMTC are increasing competitive pressure on US companies such as Micron and SanDisk. CXMT's Shanghai trading debut on July 27 saw its shares surge 466%, briefly making it the most valuable company in China.
Industry watchers said Chinese firms had built up substantial stockpiles of older-generation DUV tools before the tightest controls took hold. One Wall Street tech-sector trader said the emergence of a domestically produced DUV alternative marks a further step toward closing the gap between China and the US.
Policy backdrop and broader market context
The breakthrough comes as the US Congress advances the MATCH Act, bipartisan legislation introduced in April aimed at banning the sale and servicing of DUV immersion lithography machines to Chinese chipmakers. Since 2019, the United States and its allies have sought to constrain China's semiconductor industry by cutting off access to extreme ultraviolet lithography machines, which only ASML produces.
The chip rout coincided with a Wall Street Journal report that Nvidia could provide about US$250 billion as a financial backstop for an OpenAI data-centre project, raising investor concerns about circular financing arrangements. Morningstar senior equity analyst Brian Colello said he is keeping his US$280 target price on Nvidia, citing continued strong AI capital expenditures.
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