Europe pushes back on us chip war legislation targeting asml and china

At a glance:

• Netherlands opposes US MATCH Act that would restrict Chinese access to Western semiconductor equipment
• ASML, the world's only lithography machine maker, derives 19% of net system sales from China
• Legislation would extend restrictions beyond EUV tools to include deep ultraviolet immersion machines

Dutch Trade Minister Sjoerd Sjoerdsma made a rare visit to Washington this week to voice strong opposition to the MATCH Act, a bill that would bar Chinese chipmakers from accessing Western semiconductor equipment. The legislation, if passed, would significantly impact ASML Holding, the Netherlands' most valuable company and the sole global manufacturer of the sophisticated lithography machines essential for producing cutting-edge AI chips.

Speaking to Bloomberg after meetings with Commerce Secretary Howard Lutnick and congressional members, Sjoerdsma emphasized the high stakes for his country. "It's exceptional that I'm coming here to broadly outline our concerns to Congress," he said. "The stakes for the Netherlands may be very high." This diplomatic intervention underscores the complex international tensions surrounding semiconductor supply chains and the growing fragmentation of the global tech ecosystem.

ASML's unique position in the semiconductor industry makes it a critical player in the ongoing geopolitical struggle over chip technology. Based in Veldhoven, the company operates as a key supplier to the world's largest semiconductor manufacturers, including those in Taiwan, South Korea, and the United States. China represents ASML's second-largest customer, accounting for 19% of the company's net system sales, highlighting the economic implications of restrictive export controls.

The MATCH Act, introduced in April 2026, would expand upon existing restrictions that currently prevent ASML from shipping its most advanced extreme ultraviolet (EUV) lithography tools to China. However, the bill goes further by proposing to cut off Chinese access to deep ultraviolet (DUV) immersion machines as well. According to ASML CEO Christophe Fouquet, who spoke to TechCrunch in May, Chinese customers can currently purchase older-generation DUV tools—machines that are approximately a decade old. The MATCH Act would now relegate these machines as off-limits, effectively creating a complete technological barrier between Chinese semiconductor manufacturers and Western equipment suppliers.

Current export controls already restrict China's access to ASML's newest EUV lithography systems, which are necessary for manufacturing the most advanced semiconductor nodes below 10 nanometers. These machines represent the cutting edge of photolithography technology, enabling the production of AI accelerators, high-performance computing chips, and other advanced semiconductors. The existing restrictions have already forced Chinese chip designers to rely on older manufacturing processes, limiting their ability to compete in the global AI race.

The proposed expansion to include DUV immersion tools would represent a significant escalation in semiconductor export controls. These machines, while older technology, remain capable of producing chips at 14 nanometer and 16 nanometer nodes, which are still widely used in various consumer electronics, automotive applications, and mainstream computing tasks. By cutting off access to even these older systems, the legislation could severely constrain China's broader semiconductor industry development.

Congressional approval for the MATCH Act remains uncertain, as the bill has not yet faced a full vote in either the House of Representatives or the Senate. Bloomberg reports suggest that the legislation would likely need to be incorporated into a larger legislative package to advance through the complex congressional process. The uncertainty reflects broader debates within the US government about balancing national security concerns with economic interests and international alliances.

The diplomatic tension highlights the challenges facing Western allies as they navigate competing pressures between supporting US security objectives and protecting their own economic interests. The Netherlands, as home to ASML, finds itself at the center of this geopolitical chess match, where a single company's fortunes are intertwined with international relations and technology policy decisions that span continents.

Industry analysts suggest that the semiconductor supply chain tensions could accelerate efforts by various countries to develop domestic chip manufacturing capabilities or diversify their supplier bases. Meanwhile, Chinese semiconductor companies continue to invest heavily in alternative technologies and partnerships, seeking to reduce their dependence on Western equipment suppliers while advancing their own lithography capabilities.

Observers are now watching for potential compromises or modifications to the MATCH Act as it moves through the legislative process. The outcome could set important precedents for future technology export controls and international cooperation on semiconductor policy, with implications extending far beyond the immediate dispute over ASML's customer relationships.