U.S. politicians from both parties just teamed up to crack down on China’s tech industry. On Thursday night, they revealed a new draft law called the MATCH Act. This plan aims to stop China from getting the high-tech tools it needs to build advanced computer chips. If it passes, it will significantly change how some of the world’s biggest tech companies do business.
The law focuses on a specific technology called “immersion DUV lithography.” This is a fancy way of describing the machines that carve tiny circuits onto silicon wafers. Right now, China cannot make these machines on its own. They rely heavily on a Dutch company called ASML and a Japanese firm named Nikon. The U.S. wants to cut off that supply chain completely.
This isn’t just about selling new machines; it’s also about fixing the ones China already has. The MATCH Act would ban companies from servicing or repairing equipment for top Chinese firms like Huawei and SMIC. Without these repairs, China’s existing chip factories could eventually grind to a halt as their expensive machines wear out over time.
In the past, Presidents Trump and Biden used their own executive powers to restrict exports. This time, Congress is taking the lead to make sure the rules stay permanent. They also want to ensure that companies in allied countries, like the Netherlands and Japan, face the same strict limitations as American rivals. This prevents foreign companies from swooping in to take the business U.S. firms have lost.
ASML is in a particularly tough spot. China was their biggest market in 2025, accounting for 33% of their total sales. While they already stopped sending their most advanced “EUV” tools, they still sell older “DUV” lines to Chinese factories. This new law would kill that business entirely, likely costing the company billions in lost revenue over the next few years.
So far, ASML has declined to comment on the proposal. The Dutch government is also staying quiet, noting that it isn’t their place to talk about draft laws from another country. However, the Netherlands oversees these trade policies, and they will eventually have to decide whether to side with the U.S. or protect their own tech giant’s profits.
The ultimate goal of the MATCH Act is to keep the U.S. ahead in the artificial intelligence race. By making it impossible for China to build the best chips, the U.S. hopes to maintain its military and economic edge. As the draft moves through Congress, the global tech industry is bracing for a massive shift in how the world builds and buys semiconductors.
