US targets China chip sector with new export curbs on ASML

A cross-party group of US politicians have proposed a law to target China's chip sector by imposing further restrictions on exports of chip manufacturing equipment to Beijing.

The draft MATCH Act, introduced late Thursday, is a strategic move to protect American dominance in the competitive landscape of artificial intelligence.

The draft serves two major purposes. First it will prevent Chinese firms from acquiring advanced chipmaking equipment that they cannot make domestically.

Second, the law will also ensure that companies in US-allied nations must be subjected to the same export curbs as American firms. The move will thwart international competitors from gaining an unfair advantage in the Chinese market.

Previously, the US under the administration of Joe Biden and Donald Trump also slammed China with several rounds of export restrictions.

But the recent round of restrictions comes from the lawmakers. According to lawmakers, they are shifting their strategy to target China’s dependence on foreign technology, specifically focusing on immersion Deep Ultraviolet (DUV) lithographs which is a critical component for printing advanced chip circuitry.

Hence, the proposed law will restrict the sale of such equipment to Chinese chipmakers, such as SMIC, Hua Hong, Huawei, YMTC, and CXMT.

This specific sector is currently dominated by the Dutch giant ASML, with Japan’s Nikon serving as its primary competitor.

The existing rules still restrict ASML from sending its advanced tools to China. But it sells older DUV lines to China. However, the recent law will prohibit that.

ASML’s 33 percent of sales come from China, making the country its largest market in 2025.