Due to Western export restrictions, ASML is only allowed to export some of these machines to China; the most modern equipment is subject to a complete blockade.

In the past quarter, 14 percent of the machines that ASML sold went to China.

Play stupid games and win stupid prizes.

Preventing one of your biggest customers (China) from getting the equipment they need forces them to make it themselves.
Now China can make their own DUV lithography machines of similar quality to the ones they can get from ASML.
And obviously it won't stop there, China will continue to improve, and probably in a few years compete with ASML on the high end EUV equipment too.

Of course if China manages to spin major fab capacity of bleeding edge nodes off of this in the next few years they'll have no use for US chips.

Couple that with the fabs being built in the US currently and Taiwan is losing a lot of strategic leverage...

The Dutch government forced China to make these machines themselves by enforcing the embargo demanded by the US.
Now, China does exactly that. Then they scale up until they have strategic overproduction. Then the surplus gets thrown on the global market for cheap. Then ASML dies.
Goal: Prevent China from getting the tech.
Actual effect: The west becomes dependent on China for the tech.

Yay! Lower prices and an accelerated pop of the data center AI.

ASML "plunged" right along with the entire tech sector.......

ASML is a victim of US sanctions and Dutch/EU spinelessness. China would never had bothered to pursue lithography as serious as it did if US wasn't continuously trying to stop China on every technological front. The Europeans let US do it in the hope and under the promise that China would never succeed.

Some of it translated

If China manages to produce the DUV machines itself, it could cost ASML billions of euros in the long run. In the last quarter, 14 % of the machines ASML sold went to China. The Veldhoven‑based manufacturer expects to earn 20 % of its revenue from China this year. If the revenue forecast, recently revised up from €43 billion to €45 billion for this year, materialises, that would correspond to roughly €9 billion.

Further testing

For now ASML does not seem to have to worry. Chinese technology is not yet as advanced and reliable as that of the Dutch company. Before mass production can start in China, the machines still need to be tested. This year China is reportedly starting production of five machines; a year later that number is expected to rise to twenty.

Although ASML appears to retain its lead for the moment, investors were spooked on Monday. The ASML share ended 8.5 % lower, the lowest level since early June. Dutch rivals Besi and ASM also fell sharply, losing almost 10 % and more than 7 % of their value respectively.

If the sheer incompetence would stay consistent, US companies would start to buy chinese vcards and maybe even their inventory of underpowered nvidias. The American way is to play bait and switch without even baiting. It is to poke own eyes out to win at poker.

At this point I’ve accepted that the USA has ceded(purposefully?) its top spot on the world stage to China.

After the plunge, it's still +30% YTD, big deal

Go China! You can do it! Make shit affordable again.

People act like these series of events have pushed humanity forward. We are seeing the US, EU, and China all try to do as well as they were during the era of freer trade. Unfortunately for both China and the US the primary reasons for them pushing for this less then world is mostly desire to have their respective state dominate more people's then they can now.

Hell yeah! To hell with that chip monopoly. National security my ass!