A bipartisan group of US lawmakers has introduced legislation aimed at further restricting China's access to advanced semiconductor manufacturing equipment. The proposed Multilateral Alignment of Technology Controls on Hardware (MATCH) Act specifically targets deep-ultraviolet (DUV) immersion lithography systems, along with related parts and maintenance services, supplied by companies such as ASML in the Netherlands and Tokyo Electron in Japan.
The bill seeks to coordinate export controls with US allies and partners, imposing a blanket ban on the sale and servicing of critical chipmaking tools to countries of concern unless the facilities are controlled by the US or its allies. It names several Chinese semiconductor firms, including ChangXin Memory Technologies (CXMT), Hua Hong, Huawei Technologies, Semiconductor Manufacturing International Corp (SMIC), and Yangtze Memory Technologies Corp (YMTC), and would restrict exports, servicing, and technical support to these entities and their affiliates.
Key Provisions and Diplomatic Push
The MATCH Act includes a diplomatic track requiring the US to reach agreements with allies within 150 days, with national security waivers available if more time is needed. If allied countries fail to match US restrictions within a defined period, the act would extend controls to foreign-made equipment that uses US technology, ensuring a level playing field.
The legislation explicitly targets all DUV immersion lithography systems, through-silicon via (TSV) deposition and etch tools, cryogenic etch equipment, and cobalt deposition equipment. TSV and cryogenic etching allow engineers to drill deep vertical pathways through silicon wafers to stack layers, while cobalt deposition provides high-performance metal wiring to connect those layers into a single processor.
The act would also prevent allied firms, primarily in the Netherlands and Japan, from providing engineering services to maintain or upgrade existing machines already operating in China. This matters because Chinese chipmakers still rely on older tools such as ASML's NXT:1980i, which can be shipped and serviced. SMIC has used such equipment, alongside multiple-patterning techniques, to produce 7-nanometer chips for Huawei despite US sanctions.
Geopolitical and Commercial Implications
The impact extends beyond technology into commercial and geopolitical areas. If SMIC's 7nm output is constrained, Huawei's ability to supply domestic AI chips may weaken as Beijing urges firms to prioritize its products over US alternatives such as Nvidia's H200. The measures also add uncertainty ahead of a planned meeting between US President Donald Trump and Chinese President Xi Jinping on May 14-15, potentially complicating wider trade and strategic talks. This comes amid broader tensions, as seen in the Hormuz blockade raising stakes ahead of the Trump-Xi summit.
Chinese media and commentators have said the MATCH Act, if passed, would deal a significant blow to China's semiconductor ambitions while underscoring the urgency of building domestic alternatives. A Henan-based columnist writing under the pen name "Wu Mou" noted: "Overseas supply channels for key semiconductor equipment will be further cut off, and even maintenance and servicing could be restricted. The biggest impact will be on Chinese chipmakers that depend on imported equipment to keep their production lines running."
"The MATCH Act is clearly aimed at keeping China's chip industry limited to older manufacturing processes of 14 nanometers (nm) and above," he added. "Processes at 14nm and below still depend on imported lithography systems, and cutting off suppliers such as ASML and Tokyo Electron will inevitably disrupt China's semiconductor manufacturing plans." He warned that tighter curbs would force Chinese firms to pay higher prices for foreign chips, potentially slowing domestic industrial development and leading to job losses in less competitive segments.
The potential expansion of US chip export controls reinforces a long-held view in China's technology community, often associated with Chinese Academy of Engineering academician Ni Guangnan, that core technologies cannot be bought overseas and must be developed domestically. This aligns with broader trends in global economic institutions reassessing state-led growth models as China's influence grows.
Technological Decoupling Deepens
In June 2023, ASML said it would require export licenses from the Dutch government for shipments of its most advanced DUV immersion systems, including the NXT:2000i and newer models. By January 1, 2024, the Dutch authorities had revoked licenses for the NXT:2050i and NXT:2100i systems. The Dutch company did not clarify the status of the NXT:2000i. If that system were also restricted, the most advanced DUV immersion tools available to China would be the older NXT:1980 series, which can produce 14-16nm chips in a single exposure and achieve 7-10nm through multiple-patterning techniques.
Zhang Guobin, chief executive of Eetrend.com, commented: "The US is moving from a 'neck-choking' approach on a few advanced technologies to what amounts to a full body lock on China's semiconductor industry." The MATCH Act would require approval from both chambers of Congress and the president's signature to become law. US Senator Jim Risch said the act would prevent adversaries from undermining the US semiconductor industry and threatening national security, while Senator Andrew Kim emphasized that beyond restricting advanced chips, Washington must ensure China cannot develop the capability to produce such technologies itself.
