US lawmakers unveiled legislation that seeks to crack down on exports of chipmaking tools to China, especially from allies including the Netherlands and Japan, in a bipartisan effort to help Washington further constrain Beijing's technology ambitions.
The draft bill, introduced in the House on Thursday, would strengthen existing restrictions on semiconductor manufacturing equipment sales from firms like ASML Holding NV and Tokyo Electron Ltd. A companion version is expected to be released in the Senate later this month, according to people familiar with the matter.
The goal is to subject these companies to the same, tougher curbs their American rivals currently face. That includes banning their engineers from maintaining and repairing tools at certain facilities in China, which US persons are already barred from doing -- one of most animating issues of export control debates.
The bill would also introduce new controls that affect both foreign and US firms -- namely Applied Materials Inc., Lam Research Corp. and KLA Corp.
Tools from these companies, along with ASML and Tokyo Electron, are essential to make everything from Nvidia Corp.'s AI chips to simpler components that go into all types of electronics. For years, the US has worked with Japan and the Netherlands to stop China from getting the best gear, which has been a major chokepoint for the Asian country's AI chip production.
But China hawks in Washington have long thought the rules could be more effective. The bill -- dubbed the Multilateral Alignment of Technology Controls on Hardware, or MATCH, Act -- aims to "ensure that America and our allies move in lockstep to close these gaps, defend our technological edge, and safeguard the supply chains that power everything from our weapons systems to our critical infrastructure," Representative Michael Baumgartner, who's leading the House version, said in a statement.
Senator Pete Ricketts, who's spearheading the companion bill, added that the legislation would help create a "level playing field for US companies." NBC News reported earlier on the House measure's introduction.
Aligning existing measures across American and foreign firms is one matter. Beyond that, the legislation would also broaden the scope of technologies covered, which in some cases would tighten restrictions for US firms, too. Lawmakers largely leave the scope of that expansion to the Trump administration's discretion -- but there are some key chokepoints and companies that would be subject to mandatory control.
Among the most significant would be curbs on all of ASML's deep ultraviolet immersion lithography, or immersion DUV, machines. That would build on existing controls of the most-advanced extreme ultraviolet lithography, or EUV, machines -- which have never been permitted for export to China -- as well as some DUV measures imposed by the Netherlands.
The Hague currently requires ASML to seek licenses for its more advanced immersion DUV tools, but not all such products -- and only for certain end users rather than all potential buyers in China. That means the legislation would significantly curtail the Dutch company's access to its largest market.
ASML declined to comment. A Dutch Trade Ministry spokesperson said that "it is not our place to comment on draft legislation proposed by lawmakers from other countries."
Then there would be even tougher constraints for sales to specific Chinese companies -- including memory chip champion ChangXin Memory Technologies Inc. -- to essentially stop them from buying any American and allied production gear.
These measures go beyond controls imposed on China writ large. In some cases, Washington has already slapped more aggressive curbs on US companies' sales to the facilities in question, and the bill would force allies to match. But the provisions would also level up the measures faced by Lam, Applied Materials and KLA. Lam and Tokyo Electron declined to comment, while the other two companies didn't respond to requests for comment.
Finally, the MATCH Act calls for similarly comprehensive restrictions targeting the Asian country's own chip equipment sector, a fast-growing industry Beijing sees as vital for its technological future. Lawmakers didn't name specific companies. The biggest Chinese tool firms include Naura Technology Group Co. and Advanced Micro-Fabrication Equipment Inc.
- The MATCH Act...* Aims to strengthen curbs on US, allied chip tool sales to China
- * Blocks ASML and Tokyo Electron from servicing gear at restricted sites
- * Expands curbs to cover all of ASML's DUV immersion machines
- * Subjects specific Chinese firms, like CXMT, to tougher measures
- * Imposes fresh controls on China's own chip tool companies
The path forward is tricky. New chip equipment restrictions would be hugely provocative to China, and President Donald Trump is keen to maintain a trade truce between the world's two largest economies. That's a primary reason why Trump officials -- many of whom have themselves championed specific policies outlined in the bill, including in the White House's official AI action plan -- have struggled to execute those priorities, according to people familiar with internal administration dynamics.
The MATCH Act takes a diplomacy-first approach. It directs the administration to push allies to adopt their own tighter measures -- and if that fails after 150 days, with an option to extend the deadline once, the US would move forward on unilateral restrictions of technology made overseas. The idea is that the threat of curbs from Washington, viewed by some foreign leaders as a major diplomatic overreach, will compel Tokyo and The Hague to impose their own.
To be sure, the US has tried that before: President Joe Biden's administration made similar overtures to little avail. Trump's team did the same during their first few months, people familiar with the matter said, but never followed through on the threat. The Commerce Department's Bureau of Industry and Security, which oversees chip export controls, didn't respond to a request for comment.
Foreign officials have always been reluctant to hurt their own national champions. They've also faced overt pressure from China to reject US demands. And in interviews over the past year, some have questioned the Trump administration's seriousness about semiconductor equipment controls, citing the president's focus on tariffs, his desire to not provoke Beijing, and a decision to relax restrictions on sales of Nvidia's AI processors.
But while Trump's about-face on Nvidia's China sales has deeply divided his administration, even those who pushed for that change have expressed general support for curbs on manufacturing gear. Indeed,the logic behind allowing Nvidia to sell chips to China -- that it would stall the growth of Chinese AI chip champion Huawei Technologies Co. -- is, while controversial,similar to the motivation behind restricting sales of tools that Huawei needs to expand.
And there are signs of renewed interest in equipment curbs from Trump's team. A couple of senior officials visited ASML in the Netherlands in February, where they discussed export controls,according to people familiar with the matter. Lawmakers,meanwhile,are hoping that a strong show of congressional support will aid in ongoing diplomatic talks.
People backing the legislative effort also note that geopolitical dynamics could change as the bill winds its way through Congress over the coming months. If Trump's China detente ends,some said,that would create an opening for the type of aggressive actionthe bill outlines. While strained US-Europe relations and warming Europe-China ties could challenge talks with the Hague,others pointed out
A spokesperson for Japan's Ministry of International Trade and Industry didn't respond to a request for comment.