A proposed law seeks tighter restrictions on semiconductor manufacturing equipment, highlighting chipmaking tools as the critical chokepoint in global chip production.
A new draft law in the United States is proposing expanded restrictions on the export of semiconductor manufacturing equipment to China, placing chipmaking tools at the centre of global supply-chain controls.
The proposed Match Act aims to limit access to specialised fabrication equipment that Chinese semiconductor companies still rely on from international suppliers. Rather than focusing on finished chips, the legislation targets manufacturing technologies considered essential for advanced semiconductor production.
One of the key technologies under scrutiny is immersion deep ultraviolet (DUV) lithography, widely used to create chip circuitry. This segment is dominated by Dutch equipment maker ASML, with Japan’s Nikon serving as a smaller competitor.
The proposal would expand existing controls by restricting not only new equipment sales but also maintenance, upgrades, and servicing of certain systems supplied to Chinese semiconductor manufacturers. Companies expected to be affected include SMIC, Hua Hong Semiconductor, Huawei, ChangXin Memory Technologies, and Yangtze Memory Technologies.
Current export rules already prevent the shipment of the most advanced lithography tools, but older-generation DUV machines continue to be sold and supported in China. The new legislation seeks to close this gap by extending restrictions to equipment still widely used in commercial chip manufacturing.
The potential impact extends beyond Chinese chipmakers to global equipment suppliers. China accounted for roughly one-third of ASML’s revenue in 2025, making any tightening of equipment exports significant for industry sales dynamics.
Overall, the proposal highlights how semiconductor manufacturing equipment, rather than finished chips, has become the critical control point in the global semiconductor ecosystem. By focusing on fabrication tools, policymakers are targeting the technologies that ultimately determine long-term chip production capability.
