ASML Holding (ASML) shares were down about 7% around midday Monday, after The Information reported that Chinese state-backed company has started manufacturing certain chipmaking equipment that could impact ASML's market position.

Sources told The Information that the Chinese company is manufacturing immersion deep ultraviolet, or DUV, lithography machines. Mass production of the equipment could replace similar products from ASML, the news outlet said.

According to the report, initial targets are for five DUV machines this year and then reach 20 units by 2027.

ASML Holding did not immediately respond to MT Newswires' request for a comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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