The MATCH Act would bar ASML from selling DUV lithography systems to China and would also ban maintenance and servicing on DUV machines already delivered thereCITE:E3. The bipartisan bill is currently under review in the US CongressCITE:E3, and if the Netherlands refuses to enforce it, the United States has said it will impose sanctionsCITE:E3CITE:E7.
This marks a shift from earlier US policy. Washington first restricted the sale of advanced etching equipment to China in 2024, but that restriction stopped short of a comprehensive export banCITE:E10. The original draft of the MATCH Act also contained a broad ban on US companies selling advanced etching equipment to China, but that provision was deleted from the final version — while the ASML-specific DUV ban was kept in placeCITE:E5CITE:E10.
The Dutch government has already banned ASML from exporting EUV lithography systems to China and has restricted sales of some more advanced older-generation DUV equipmentCITE:E2CITE:E8. As a result, ASML has not shipped any EUV equipment to China since 2019CITE:E2. Both restrictions were adopted under pressure from the United StatesCITE:E2CITE:E8. The US government is now preparing to press the Dutch government further, seeking a ban on almost all chipmaking equipment sales to China, including DUV machinesCITE:E1.
The US government has used ASML's dependence on the US supply chain as leverage, threatening to cut off supply as a way to push the Dutch government toward compromiseCITE:E4. At the same time, the US Congress is advancing the MATCH Act specifically to force the Netherlands to fully align with US sensitive-technology export controlsCITE:E7. Under the bill, ASML could be banned from selling older DUV equipment to China and from servicing machines already delivered, and the US could sanction the Netherlands if it does not complyCITE:E3CITE:E7.
Dutch government officials are actively lobbying in Washington to stop the MATCH Act, but their chances of success appear lowCITE:E9. Both the Republican and Democratic parties support the bill, and it is currently moving toward inclusion in the US defense budget billCITE:E9 — a vehicle that, according to the evidence, almost always passes CongressCITE:E9.
Shanghai Yuliangsheng Technology began limited production of immersion DUV lithography machines in July 2026CITE:E6. The company expects to deliver five systems by the end of the year, with a target of producing around 20 units by 2027CITE:E6. Its customer list already includes SMIC (中芯國際), CXMT (長鑫存儲), and Hua Hong Semiconductor (華虹半導體)CITE:E6.
| Milestone | Figure | Source |
|---|---|---|
| ASML EUV shipments to China since | 0 (none since 2019) | CITE:E2 |
| US etching-equipment restriction on China begins | 2024 | CITE:E10 |
| Shanghai Yuliangsheng starts limited DUV production | July 2026 | CITE:E6 |
| Shanghai Yuliangsheng systems to be delivered by year end | 5 | CITE:E6 |
| Shanghai Yuliangsheng production target by 2027 | ~20 units | CITE:E6 |
Taken together, the evidence shows a widening gap between what the MATCH Act removes and what it keeps: the broad ban on US companies' etching-tool sales to China was deleted from the final text, while the ASML-specific DUV sales and maintenance ban was retainedCITE:E5CITE:E10. That gap is opening in parallel with a Dutch lobbying effort in Washington that, by the evidence available, is unlikely to succeed given bipartisan support for the bill and its path through the defense budget processCITE:E9. Meanwhile, China's domestic DUV production — zero to limited output in 2026, with a ~20-unit target for 2027 — is advancing at the same time the restrictions on ASML are being tightenedCITE:E6.
The MATCH Act would bar ASML from selling DUV lithography systems to China and would also ban maintenance and servicing on DUV machines already delivered thereC…
The Dutch government has already banned ASML from exporting EUV lithography systems to China and has restricted sales of some more advanced older-generation DUV…
The US government has used ASML's dependence on the US supply chain as leverage, threatening to cut off supply as a way to push the Dutch government toward comp…
Dutch government officials are actively lobbying in Washington to stop the MATCH Act, but their chances of success appear lowCITE:E9.
The clearest signal here is the MATCH Act's dual retreat-and-escalate structure: negotiators deleted the broad ban on US companies' etching-tool sales to China while keeping ASML's DUV and maintenance ban intact — a policy asymmetry that isolates one non-US supplier rather than closing the tool category itself. That gap matters because it hands China's toolmakers time and market space: Shanghai Yuliangsheng Technology has already moved from nothing to limited production of immersion DUV systems, with SMIC, CXMT, and Hua Hong Semiconductor on its customer list. The figure worth tracking is whether the roughly 20-unit target for 2027 actually ships — measured against zero EUV shipments to China since 2019, that output level is the real gauge of how much runway the current restriction gap is buying Chinese toolmakers before the MATCH Act, if it clears the defense budget vehicle, closes the maintenance loophole as well.
Japan's Ministry of Economy, Trade and Industry plans to request an additional ¥150 billion (~NT$30 billion) for Rapidus in next year's budget. If approved, it would be the government's third capital injection, lifting cumulative state capital in the company to ¥400 billion, while total government support is projected to reach roughly ¥3 trillion by March 2028.
NVIDIA reports fiscal Q2 earnings on August 26, with analysts projecting record revenue of $92 billion, above the $78 billion initial-year estimate. After 14 straight quarters of beating forecasts, analysts say NVIDIA needs 95% profit growth and $51.5 billion in net income to clear the bar again, while options price a 5.3% post-earnings swing and its shares have fallen after each of the last four reports.
NVIDIA has told its largest customers that AI server prices will rise by more than 15% on Grace Blackwell and Vera Rubin systems shipping early next year, as memory suppliers led by Samsung, SK Hynix and Micron struggle to keep pace with demand and NVIDIA opts to pass rising memory costs to customers rather than absorb them within its roughly 75% non-GAAP gross margin.