Advanced Micro Devices Inc (NASDAQ:AMD) shares plunged on Wednesday as chip stocks felt pressure following reports of a huge breakthrough in China's semiconductor ambitions and uncertainty around Oracle's significant data center financing plans.
What Happened: Reuters reports that Chinese scientists have developed a prototype extreme ultraviolet lithography machine inside a secure lab in Shenzhen. Finished earlier this year and now undergoing tests, the effort was said to be led by former engineers from Dutch chip‑equipment maker ASML who reverse‑engineered its EUV technology.
Despite significant technical hurdles, particularly in replicating the precision optical systems supplied by Western firms, the government has set its sights on producing chips with the prototype by 2028, while experts suggest 2030 is more achievable.
The project represents the culmination of a six‑year national push for semiconductor independence, a key priority for President Xi Jinping. Huawei is coordinating the effort across companies and research institutes, with insiders comparing it to a "Manhattan Project" for chips.
ASML’s CEO Christophe Fouquet previously said China would need “many, many years” to master EUV technology, but the existence of this prototype suggests progress may be faster than expected. One source familiar with the project said “China wants the United States 100% kicked out of its supply chains.”
Meanwhile, Oracle's talks indicate an equity deal to finance its $10 billion Michigan data center reportedly no longer include key partner Blue Owl Capital. The project was said to have less favorable lease and debt terms compared to other deals.
The development comes amid Oracle’s growing concern over its increasing debt and heavy AI spending. Sources noted the company has yet to secure a replacement partner to back the facility.
AMD Price Action: Advanced Micro Devices shares were down 5.17% at $198.35 at the time of publication on Wednesday, according to Benzinga Pro.
Read Next:
Image: Piotr Swat/Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
