China’s New Chip Machines Shock Asian Markets

Asian stocks fell sharply on Tuesday after reports emerged that China can now manufacture DUV lithography machines. These machines are essential for producing advanced computer chips. The news rattled investors in AI hardware companies, which had relied on selling the “picks and shovels”—the specialized equipment—for chipmaking. The sell-off signals a potential shift in the global supply chain, as China’s new capability threatens to reduce demand for foreign-made lithography tools.