[News] U.S. Proposes to Tighten China Chip Tool Exports; Targets DUV to Slow SMIC and Peers’ Advanced Node Push

The U.S. is reportedly advancing a bill to further tighten China’s access to chipmaking equipment. According to South China Morning Post, U.S. lawmakers have proposed the Multilateral Alignment of Technology Controls in Hardware (MATCH) Act, which aims to close “critical gaps” in existing restrictions by requiring allied countries to align with U.S. export curbs on semiconductor tools to China within 150 days.

If enacted, South China Morning Post notes the measure would prohibit exports of essential semiconductor manufacturing equipment, including deep ultraviolet DUV immersion lithography systems and cryogenic etching tools.

China’s leading chipmakers, including SMIC and Hua Hong, still rely on ASML’s DUV tools to produce less-advanced chips, CNBC notes. There is no domestic alternative to ASML’s EUV systems, and globally, substitutes for DUV lithography machines remain limited.

Meanwhile, as noted by Tom’s Hardware, the proposed MATCH Act would shift export controls from a fab-based framework to a hybrid model incorporating company- and affiliation-based criteria. As a result, companies such as SMIC would be unable to purchase advanced tools for trailing-node fabs and redirect them to facilities capable of 7nm-class production.

Strategic Targeting and Industry Impact in China

Notably, as highlighted by Chinese outlet ICSmart, the U.S. appears to be targeting two core equipment categories—lithography and etching—critical to key stages of chip manufacturing. Immersion DUV is essential for the transition from mature to advanced nodes, while cryogenic etching underpins high-aspect-ratio processes such as 3D NAND and advanced packaging. Restricting both simultaneously signals a clear intent: to slow China’s move toward advanced nodes while curbing memory capacity expansion.

ICSmart also notes that the MATCH Act would restrict maintenance and technical support, meaning the continued operation of existing equipment could be affected—making the impact more severe than a ban on new tool sales alone. According to ICSmart, if passed, the MATCH Act would pose near-term challenges for China’s semiconductor industry, including tighter access to advanced equipment and uncertainty over maintaining installed tools. Over the longer term, it may further reinforce China’s push for greater self-sufficiency across its semiconductor supply chain.

Impact on Equipment Suppliers and ASML Exposure

South China Morning Post notes that the proposal has increased uncertainty for leading global equipment suppliers. Once implemented, ASML’s lithography systems and Tokyo Electron’s etching equipment would fall under U.S. export controls. China’s share of ASML’s global sales declined to 33% in 2025, down from 41% a year earlier. The report adds that this figure is expected to drop to around 20% in 2026, as restrictions curb shipments of advanced systems and demand for other models moderates after an earlier surge.

The impact on ASML could be substantial. As CNBC reports, citing analysts, the legislation would affect older lithography tools that account for roughly 10%–15% of total sales. Within that segment, China represents about 50%, implying a potential hit of around 5%.

Read more

• [News] “China’s ASML” by 2030? SMIC, Naura and Other Chip Leaders Call for National Effort
• [News] China Reportedly Builds EUV Prototype Using Older ASML Components, Eyes 2028 Chipmaking

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