US Proposes Ban on DUV Lithography Machine Exports to China, Affecting YMTC, CXMT, and Three Other Chinese Firms

Recently, a bipartisan group of U.S. senators jointly proposed the "MATCH Act", aiming to escalate export controls on China's semiconductor industry. The bill introduces a near-complete ban on the export of advanced wafer fabrication equipment (WFE) to five of China's core semiconductor companies, including Huawei, SMIC, YMTC, CXMT, and Hua Hong. The restrictions cover key equipment including DUV lithography machines and etchers. This new proposal does not add new categories of controlled items; rather, it fundamentally changes the licensing and approval logic for equipment exports. In addition, the bill closes loopholes that allowed procurement through intermediary channels, extending controls to cover the entire lifecycle of equipment—including transactions, use, re-export, and maintenance—thereby disqualifying the affected entities from purchasing or maintaining such equipment. The bill also introduces a 75% threshold calibration mechanism: if domestic supply of a particular type of equipment in China meets 75% of market demand, the U.S. will lift corresponding restrictions, maintaining limitations only in areas where it retains strategic initiative. If the bill is formally enacted, Chinese chip companies will lose the ability to procure certain advanced equipment for mature process production lines and repurpose it for advanced process R&D and volume production. The ultimate impact of the bill will depend on the legislative process in Congress.