China's Successful DUV Mass Production and 3 Reasons for the Drop in Samsung and SK Hynix Stocks
Major domestic semiconductor stocks plummeted following news of China's successful mass production of its proprietary DUV lithography equipment. Coupled with concerns about slowing global IT demand, the debate over a semiconductor peak is reigniting.
China Succeeds in Mass Producing DUV Lithography Equipment, Shaking the Semiconductor Market
News that China has successfully mass-produced DUV (Deep Ultraviolet) lithography equipment using its own technology is sending shockwaves through the global semiconductor market. Consequently, as of July 28, 2026, major domestic semiconductor stocks such as Samsung Electronics and SK Hynix plummeted, causing the KOSPI to break below the 6,000 mark during intraday trading.
3 Key Factors Driving the Drop in Domestic Semiconductor Stocks
- Concerns over China's expanding share in legacy semiconductors: If China mass-produces legacy process semiconductors using its own DUV equipment, it could lead to global oversupply, worsening the profitability of domestic companies.
- Bad news coupled with slowing global IT demand: Amid widespread concerns about slowing global memory semiconductor demand, news of China's technological independence has fueled the debate over whether semiconductors have peaked, sharply freezing investor sentiment.
- Large-scale exodus of foreign capital: Along with the aftermath of the global tech stock correction, as geopolitical risks and concerns about intensifying competition are highlighted, foreign investors massively net-sold domestic semiconductor stocks, driving the index down.
Future Semiconductor Market Outlook and Investment Strategy
Experts predict that while the impact of China's DUV mass production on cutting-edge EUV processes will be limited for now, price competition in the low-to-mid-end semiconductor market is inevitable. Therefore, investors need to take a conservative approach, closely examining each company's competitiveness in advanced processes (such as HBM) and their ability to defend earnings.
Frequently Asked Questions (FAQ)
Q1. What is the difference between DUV and EUV equipment?
A. DUV (Deep Ultraviolet) is mainly used for manufacturing mature (legacy) process semiconductors, while EUV (Extreme Ultraviolet) is essential equipment for cutting-edge micro-processes of 7 nanometers or less. What China has succeeded in this time is DUV equipment.
Q2. When will Samsung Electronics and SK Hynix stocks rebound?
A. In the short term, volatility may continue due to concerns about oversupply from China and the global tech stock correction. However, a meaningful rebound can be expected when achievements in cutting-edge processes, such as AI semiconductor demand, become visible.