The draft law, titled the MATCH Act, was introduced on Thursday as part of efforts to maintain US leadership in artificial intelligence and advanced technology sectors.
The proposal has two key objectives. It seeks to block Chinese firms from acquiring advanced chipmaking equipment that they are unable to produce domestically, and to ensure that companies in US-allied countries are subject to the same export restrictions as American firms, preventing them from gaining an advantage in the Chinese market.
The move builds on previous restrictions imposed under administrations of Joe Biden and Donald Trump, but reflects a shift in strategy by lawmakers to directly target China’s reliance on foreign technology.
A central focus of the proposed law is immersion Deep Ultraviolet lithography, a crucial technology used in the production of advanced semiconductor circuits. The legislation aims to restrict the sale of such equipment to major Chinese chipmakers, including SMIC, Hua Hong, Huawei, YMTC, and CXMT.
The sector is currently dominated by Dutch company ASML, with Japan’s Nikon as a key competitor.
While existing rules already prevent ASML from exporting its most advanced tools to China, the company has continued to sell older DUV systems. The proposed law would close that gap by banning such sales as well.
China remains a major market for ASML, accounting for around 33 percent of its global sales in 2025.
