US pressures ASML over China's access to advanced chip-making tools
In brief
- Lutnick raised concerns with ASML executives about China's access to advanced chip-making tools
- ASML reaffirmed it has never shipped EUV systems to China and none operate there
- Netherlands aligned export controls with US to block EUV sales to China since 2019
- Proposed MATCH Act in 2026 would expand restrictions to deep ultraviolet lithography systems
- China reportedly stockpiling allowed DUV equipment ahead of tighter regulations
ASML's Denial and Global Monopoly
ASML is the world's sole manufacturer of extreme ultraviolet lithography machines. These tools are critical to producing the most advanced semiconductors. The company's statement was direct: it has never shipped EUV systems to China, and none are operating in the country.
The technology itself is formidable. EUV lithography machines use light with wavelengths of just 13.5 nanometers to etch circuit patterns onto silicon wafers, enabling production of the world's most advanced chips. This precision is why the tools command such strategic importance in the US-China tech competition.
Export Controls and Looming Restrictions
The Netherlands has already aligned its export control policies with the US, specifically preventing EUV tools from being sold to China since around 2019. This partnership reflects broader Western efforts to constrain China's semiconductor capabilities. The Biden administration rolled out sweeping export controls in 2022 aimed at curbing China's progress in artificial intelligence and high-end computing.
But the restrictions may soon expand. A proposed piece of legislation called the MATCH Act, expected in 2026, would expand restrictions beyond EUV to include deep ultraviolet lithography systems and their associated service mechanisms. This move carries real consequences for ASML's business model.
The DUV Pivot and Revenue Risk
Here's the tension: ASML has historically generated significant sales from DUV equipment shipped to Chinese customers. As EUV remains locked behind export controls, China has become a major buyer of the older, less advanced DUV systems. China has reportedly been stockpiling allowed DUV equipment in anticipation of tighter rules.
The Commerce Secretary's direct engagement signals a shift in tone. Rather than relying on export controls alone, the US is now applying diplomatic pressure on the companies themselves. This move underscores how contested semiconductor supply chains have become and hints at tougher enforcement ahead.
