[News] U.S. May Push Near-Total ASML China Ban on DUV Sales and Servicing Amid China Domestic Lithography Push

Washington’s chip equipment restrictions could extend deeper into ASML’s remaining DUV business in China. According to Dutch news outlet NU.nl, the U.S. is preparing to pressure the Netherlands to impose a near-total ban on ASML’s chipmaking equipment sales to China. Under the proposed Multilateral Alignment of Technology Controls on Hardware (MATCH) Act, U.S. allies could be required to align their export controls on sensitive technologies with those of the U.S., potentially extending restrictions to older ASML equipment still sold to China and servicing of machines already delivered. The Netherlands could face U.S. sanctions if it does not comply.

The report notes that Dutch officials are lobbying heavily in Washington to block the MATCH Act, though their chances of success appear limited. The proposal has bipartisan support and is on track to be included in the U.S. defense budget, which is rarely rejected.

The bipartisan push behind the MATCH Act dates back to its introduction earlier this year. Reuters noted that the bill was introduced in the U.S. House of Representatives on April 2, aiming to close gaps in restrictions on chipmaking equipment sales to China and align U.S. controls with those of allies including Japan and the Netherlands.

China remains a significant market for ASML despite its declining share of system sales. According to ASML’s latest results, China accounted for 14% of the company’s net system sales by shipment location in Q2 2026, down from 19% in the first quarter. With EUV exports to China already restricted, ASML’s remaining system sales to the country are largely centered on older-generation DUV equipment.

China Accelerates Domestic DUV Push, but ASML Gap Remains

The potential tightening of ASML restrictions comes as China accelerates efforts to develop domestic tools. Reuters reported in late July that state-backed Shanghai Aishengna Electronic Technology Group is leading China’s production of domestically developed immersion DUV lithography machines after incorporating teams from local lithography players including Yuliangsheng and Shanghai Micro Electronics Equipment (SMEE).

The Information, which first reported the production effort, notes that the program targets around five DUV systems in 2026 and roughly 20 in 2027. The first systems are expected to be delivered this year to major Chinese chipmakers including SMIC, Hua Hong Semiconductor, and CXMT.

Despite the progress, China’s domestic DUV production remains limited relative to local demand. Hong Kong China News Agency notes that China imported 95 DUV systems in 2025 alone, far exceeding the initial output planned under its emerging domestic production program.

Read more

• [News] China Reportedly Mass-Produces Immersion DUV Tools; SMIC, Hua Hong, CXMT Deliveries Expected This Year
• [News] U.S. Proposes to Tighten China Chip Tool Exports; Targets DUV to Slow SMIC and Peers’ Advanced Node Push

(Photo credit: ASML)