US Proposes Export Restrictions on ASML to Limit Chinese Chipmaking

• The proposed law would block ASML from selling older DUV lithography equipment to China, expanding beyond existing restrictions that only cover the most advanced tools
• China represented 33% of ASML's total sales in 2025, though the company projects this will decline to 20% in 2026
• The legislation aims to ensure U.S.-allied companies face the same export restrictions as American firms, targeting China's reliance on imported chipmaking technologies it cannot manufacture independently

Summary: US Proposes Export Restrictions on ASML to Limit Chinese Chipmaking

A bipartisan group of U.S. lawmakers has introduced the MATCH Act to impose stricter export controls on chipmaking equipment to China, primarily targeting Dutch semiconductor equipment maker ASML and Chinese chip manufacturers.

Key Details:

The proposed legislation aims to block sales and servicing of immersion DUV (deep ultraviolet) lithography equipment to leading Chinese chipmakers including SMIC, Hua Hong, Huawei, CXMT, and YMTC. The bill seeks to prevent Chinese companies from obtaining critical chip manufacturing tools they cannot produce domestically while ensuring U.S.-allied nations face equivalent restrictions as American competitors.

Market Impact:

China represented ASML's largest market in 2025, accounting for 33% of total sales. The company projects this will decline to 20% in 2026. Current Dutch regulations already prevent ASML from selling its most advanced equipment to China, but the company continues selling older DUV systems to Chinese chipmakers and to South Korean and Taiwanese firms with Chinese operations—sales that would be prohibited under the new law.

ASML dominates the immersion DUV lithography market, competing with smaller Japanese rival Nikon. The company declined to comment on the proposed legislation.

Context:

This represents a Congressional-led initiative, differing from previous export restrictions implemented by Presidents Trump and Biden. The Netherlands' foreign ministry, which oversees export policy, declined to comment on draft foreign legislation.

The proposal underscores ongoing U.S. efforts to maintain technological leadership in artificial intelligence by restricting China's access to critical semiconductor manufacturing capabilities.