A new U.S. legislative push threatens to sever China's access to critical chip-making machinery, directly targeting firms like ASML in a move lawmakers claim is essential to maintain American AI supremacy. The proposed MATCH Act, introduced by Congressmen Michael Baumgartner and John Moolenaar, aims to block Chinese companies from purchasing advanced semiconductor production equipment they cannot manufacture domestically, marking a significant escalation in the tech cold war by shifting the regulatory offensive from the White House to Capitol Hill.

Bill targets older machines and named Chinese firms

The bill takes direct aim at a specific type of chip-making machine called immersion DUV lithography. China buys most of these from ASML and, to a lesser extent, from its smaller Japanese competitor, Nikon.

Rules already bar ASML from selling its newest and most powerful EUV machines to China. But the MATCH Act would go further.

It would ban the sale and even the maintenance of older DUV machines to major Chinese chip companies.

The bill clearly designates SMIC, Hua Hong, Huawei, CXMT, YMTC, and associated companies as targets. If the legislation is approved, these businesses would receive exports, servicing, and technical assistance in the same manner that the United States presently treats businesses on its Entity List.

This would essentially compel ASML to violate current agreements and give up a significant portion of its business. With 33% of ASML’s total revenue in 2025, China was the company’s largest market.

This year, that percentage is already predicted to drop to about 20%.

One of the bill’s central goals is to make sure that American allies play by the same rules as U.S. companies. The proposal gives allied countries 150 days to show they are tightening their own controls.

If they fall short, the Department of Commerce would be directed to put the restrictions in place on its own. The bill also widens U.S. authority over goods made in other countries if they include American software, technology, or parts.

Senator Pete Ricketts spoke plainly about what the bill is trying to fix.

“For too long, our export controls have been a patchwork of entity-based restrictions that Beijing easily bypasses using front companies,” he said. “The MATCH Act strengthens our controls and creates a level playing field for U.S. companies.”

The Dutch government offered a careful response to the bill. A spokesperson from the Netherlands’ foreign ministry said it was “not our place to comment on draft legislation proposed by lawmakers from other countries.” ASML said nothing publicly on Friday.

Rare earth squeeze looms as China’s likely countermove

China could attempt to tighten its hold on rare earth elements, another piece of the technology puzzle, in response to Washington’s efforts to tighten regulations on chip equipment.

A top Chinese delegation had recently visited research facilities and manufacturers to advocate for closer cooperation between the mining, production, and commercial usage of these commodities, according to state-affiliated industry sources.

China could carefully control its rare earth business, as evidenced by the visit, which emphasized the need to ensure supply and maintain stable prices.

The concern for Western technology companies is not just about raw materials.

China already leads in the processing of rare earths and in manufacturing products like electric vehicle motors and industrial robots that depend on them.

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