Core Viewpoint - Semiconductor equipment stocks, including ASML Holdings, KLA, and Lam Research, experienced significant declines due to fears of a tariff-induced recession and increasing trade tensions with China [1][4][6] Group 1: Market Reactions - ASML Holdings, KLA, and Lam Research saw their shares drop by 6.71%, 4.63%, and 6.58% respectively, reflecting a broader sell-off in semiconductor stocks [1] - The market is reacting negatively to comments from President Trump regarding potential recessions linked to tariffs, which has impacted economically sensitive stocks, particularly in the tech sector [4][6] Group 2: Trade Tensions and China - Tariffs on China complicate the semiconductor market as China is a major buyer of chips and is investing heavily in domestic semiconductor production [2][7] - China's development of alternatives to extreme ultraviolet (EUV) technology poses a threat to ASML, which currently holds a monopoly in this area [3][11] Group 3: Technological Developments - China has reportedly increased its use of domestic chipmaking tools to 13.6% last year, indicating progress in its semiconductor capabilities [10] - The introduction of laser-induced discharge plasma (LDP) technology in China could signal advancements in producing leading-edge semiconductors, although it remains uncertain if it can match EUV technology [11][14] Group 4: Historical Context and Future Outlook - Historical trends show that semiconductor stocks have previously rebounded after similar sell-offs during trade wars, suggesting potential long-term buying opportunities [13][16] - Despite current market conditions, megatrends such as cloud computing, remote work, and AI are expected to support growth in chip and semiconductor equipment stocks moving forward [15][16]