ASML has warned that a proposed U.S. law restricting sales of deep-ultraviolet lithography equipment to China could produce the opposite of its intended effect by accelerating Beijing’s efforts to build domestic alternatives. Chief Financial Officer Roger Dassen said the company opposes the proposed Match Act and argued that tighter restrictions could strengthen China’s motivation to develop competing chipmaking tools.
The warning came after ASML’s third-quarter earnings call, as Washington continues to debate how aggressively it should limit China’s access to semiconductor manufacturing technology.
What the Match Act would target
The proposed legislation would further restrict the sale of advanced DUV lithography systems to China. These machines are less advanced than ASML’s extreme-ultraviolet systems but remain essential for producing a wide range of semiconductors.
China still relies heavily on foreign chipmaking equipment, particularly in lithography, making ASML a central company in the global technology-control debate.
ASML says restrictions could accelerate substitution
Dassen argued that cutting China off from more equipment would create a stronger incentive for Chinese firms to invest in domestic alternatives. In his view, that could ultimately reduce the long-term market position of Western suppliers.
The argument reflects a broader tension in export-control policy: restrictions can slow access to technology in the short term while also encouraging local replacement efforts.
China has already increased semiconductor investment
Beijing has spent heavily on domestic chip production, equipment and materials in response to U.S. controls. Chinese companies have made progress in several areas, although advanced lithography remains one of the hardest technologies to replicate.
ASML’s concern is that broader restrictions could concentrate even more capital and political support on closing that gap.
ASML occupies a unique position
The Dutch company is the world’s dominant supplier of advanced lithography machines. Its EUV systems are effectively indispensable for manufacturing the most advanced logic chips.
That technological importance gives ASML enormous commercial value but also places it at the center of geopolitical pressure from the United States, China and European governments.
Washington sees chip tools as a security issue
U.S. policymakers argue that limiting China’s access to advanced semiconductor technology is necessary because high-performance chips can support military systems, artificial intelligence and surveillance.
Export controls have therefore expanded from individual chips to the machines and software used to manufacture them.
Europe has its own economic interests
ASML is headquartered in the Netherlands, and restrictions on its exports affect European revenue and industrial policy. Dutch authorities have already imposed controls on some equipment under pressure from Washington.
The debate now involves how far European governments should align with U.S. policy when their own companies bear much of the commercial cost.
China remains a major market
Despite restrictions, China continues to buy large volumes of semiconductor equipment for mature-node production. Those chips are used in cars, industrial systems, appliances and other mass-market products.
Further restrictions could therefore affect not only advanced AI chips but also the broader global electronics supply chain.
The risk of market fragmentation is growing
If China develops a fully domestic chip-equipment ecosystem, the global semiconductor industry could split into competing technology blocs. Western suppliers would lose access to a large market, while Chinese firms might become stronger competitors in developing economies.
That outcome would reduce the efficiency created by decades of global specialization.
ASML is balancing politics and shareholders
The company must comply with export rules while also protecting its long-term commercial interests. Its public opposition to the Match Act signals concern that policy is moving beyond targeted security restrictions toward broader economic separation.
Dassen said he remained optimistic that lawmakers would ultimately take a more measured approach.
The debate will continue after U.S. elections
The Match Act is expected to remain part of the U.S. policy debate after the midterm elections. Semiconductor controls have broad bipartisan support, but the scope and economic consequences remain contested.
ASML’s warning captures the central dilemma: restricting technology can slow a competitor, but if the restrictions are too broad, they may also create the incentive and market conditions for that competitor to become more self-sufficient.
Sources
- ASML management comments following third-quarter results
- Reuters, October 14, 2026
Another concern for ASML is the service business tied to machines already installed in China. Even if new equipment sales are restricted, maintenance, spare parts and software updates can remain economically important. Broader controls could therefore affect recurring revenue as well as new-system shipments.
