US reportedly pushing Netherlands to ban ASML chip equipment sales to China

The United States is reportedly preparing to pressure the Netherlands into prohibiting ASML from supplying nearly all chip manufacturing equipment to China. This potential escalation of US semiconductor restrictions aims to hinder China's progress in artificial intelligence and supercomputing, as well as its military technology development.

A proposed US law, the MATCH Act, could transform existing political pressure on allies into directly enforceable measures. The legislation seeks to compel US allies to synchronize their export policies for sensitive technologies with those of the United States. If enacted, the law could prevent ASML from selling older DUV equipment to China, and potentially even from servicing equipment already delivered.

Should the Netherlands refuse to comply with these restrictions, the US could impose sanctions. ASML's own production relies heavily on US suppliers, a vulnerability the US has previously leveraged to influence Dutch export controls. Dutch government officials are reportedly lobbying in Washington to prevent the MATCH Act's passage, but their chances appear slim, as the proposal has bipartisan support and is being considered for inclusion in the US defense budget, which typically passes Congress.

Notably, the MATCH Act could allow US companies to continue selling advanced chip etching equipment to China, while Dutch ASML's DUV equipment would face a sales ban. China has been observed using advanced etching technology in conjunction with DUV equipment to produce chips typically requiring EUV technology. While the US restricted sales of such etching equipment in 2024, it did not impose a comprehensive ban. The initial version of the MATCH Act included similar provisions for etching equipment, but these were later removed, leaving the ban on ASML's DUV equipment intact.