[News] U.S. Reportedly Considers Softening Proposed China Chip Tool Bill, but Still Includes Curbs on ASML DUV

U.S. lawmakers recently proposed the “MATCH Act,” a bill aimed at tightening restrictions on key chip equipment sales to China, though it is now reportedly being scaled back and shifting toward more targeted controls. According to Reuters, sources say the revised version has been softened but still introduces a nationwide restriction on ASML’s deep ultraviolet (DUV) immersion lithography systems.

The House Foreign Affairs Committee is set to vote on the bill next Wednesday, alongside more than a dozen others related to AI, semiconductors, and export controls. As the report notes, this vote represents one step in the process toward potentially becoming law.

As the report indicates, many of the restrictions included in the bill’s early April version have been removed, including nationwide curbs on cryogenic etch tools used in chipmaking, which are produced by Lam Research and Japan’s Tokyo Electron.

However, the report also notes that the more targeted bill still prohibits foreign firms from selling to China’s leading memory makers and SMIC for facilities that Washington has barred from using U.S. tools.

Beyond sales restrictions, the revised bill also requires licenses to service equipment in covered facilities, a contentious provision for foreign firms, although applications will no longer be automatically denied.

Pushback Grows From Industry and Allies

As Reuters notes, the early April version of the bill unsettled the industry both in the U.S. and abroad, with one expert describing it as a “runaway train” that sought not only to force allies to align with U.S. controls, but also to impose broad countrywide and company-specific restrictions. Manufacturers say such measures would curb exports and weigh on sales.

The previously proposed MATCH Act has also faced pushback at the government level. According to NL Times, Dutch King Willem-Alexander, Queen Máxima, and Prime Minister Jetten attended a White House dinner hosted by President Donald Trump on Monday. The prime minister said it is important that the U.S. hear not only ASML’s perspective on what is favorable or unfavorable for the company, but also the government’s view of the situation.

Proposed U.S. Bill May Restrict ASML’s DUV Sales to China

ASML has never been permitted to sell EUV machines to China, but it has long supplied lower-end deep ultraviolet (DUV) lithography systems. According to CNBC, that may now change. The bipartisan bill would halt ASML’s DUV sales to Chinese chipmakers, further pressuring its already declining revenue from the region. ASML‘s system sales to China accounted for 19% of total revenue in the first quarter, down from 36% in the December quarter.

Read more

• [News] China Reportedly Sees Record 2025 Chip Tool Imports from Singapore, Malaysia; U.S. Hit Lowest Since 2017
• [News] ASML Raises 2026 Sales Outlook to €36B–€40B on Memory, Logic Demand; South Korea Share Hits 45%

(Photo credit: ASML)