US House proposes expanding restrictions on Chinese chip equipment to thwart CCP ambition.

On Thursday, US lawmakers officially introduced a bipartisan bill called the “MATCH Act” aimed at strengthening restrictions on the export of advanced semiconductor manufacturing equipment to China, in order to curb the Chinese Communist Party’s technological ambitions.

The bill, led by Michael Baumgartner, not only focuses on cutting-edge technology, but also expands the scope of control to include mature processing equipment and post-sales maintenance services, explicitly targeting five Chinese chip giants such as SMIC and Huawei, calling for stricter sanctions to be imposed.

Chairman John Moolenaar of the Committee on China Affairs, along with Democratic representatives Jared Golden and John Mannion, are also co-sponsors of the bill.

Subsequently, the Senate will have a corresponding version of the bill introduced by Republican Senator Pete Ricketts and Democratic Senator Andy Kim.

One of the core objectives of this bill is to expand the scope of control from advanced extreme ultraviolet (EUV) lithography machines to immersion deep ultraviolet (DUV) lithography machines and related etching tools.

The bill stipulates a ban on exporting key chip manufacturing tools to “concerned countries” such as China, Russia, North Korea, Iran, and Cuba, including DUV lithography machines and cryogenic etch tools. These tools are currently seen as critical for the CCP to break through AI restrictions and achieve “quantity over quality” in chip production.

Baumgartner emphasized, “The US cannot leave a backdoor open for the CCP to acquire the equipment necessary for a leap in semiconductor manufacturing.”

According to data compiled by the Washington-based think tank, the Silverado Policy Accelerator, China’s import of chip manufacturing equipment skyrocketed to $51.1 billion last year. Experts warn that China is using large-scale production of advanced chips to fill the gap in computing power due to the inability to acquire top AI chips.

Sarah Stewart, the CEO of Silverado Policy Accelerator, also supports the bill, stating, “Allowing them to use slightly lesser technology on a mass scale would cause as much damage as directly providing them with the most advanced manufacturing technology.”

The bill specifically names five Chinese state-backed enterprises, including CXMT, Hua Hong, Huawei, SMIC, and YMTC.

The bill requires these companies, as well as all their subsidiaries and affiliated entities, to be treated as controlled facilities, prohibiting any US-controlled products, maintenance services, or technical support from flowing in.

Senator Ricketts pointed out that existing controls are mostly piecemeal physical restrictions, allowing Beijing to easily bypass them through “front companies,” and the new bill aims to end this situation.

Lawmakers expressed concerns about the dominance of China in mature process chips. A statement pointed out that these Chinese chips are widely embedded in US weapon systems, intelligence platforms, and critical infrastructure.

By preventing China from acquiring cutting-edge equipment, it will help limit China’s production capabilities in mature chips.

Senator Chuck Schumer emphasized that as China seeks to dominate the global chip industry, stopping the supply of key equipment is a necessary means to maintain the US advantage in future industries such as AI and quantum computing.

“The US should not allow China to acquire any technology that would enhance its military ambitions and threaten US national security,” said Schumer. “If the US aims to maintain national security advantages in artificial intelligence, quantum computing, and other essential industries and outcompete China, then the ‘MATCH Act’ will be a crucial and necessary step.”

The “MATCH Act” has garnered signatures from numerous heavyweight members of Congress in both the House and the Senate, and has also earned endorsements from several authoritative think tanks.

Chris McGuire, a senior researcher at the Council on Foreign Relations (CFR), stated that chip manufacturing equipment is currently the most difficult area for China to independently develop and is a crucial bargaining chip for the US and its allies.

“The ‘MATCH Act’ is crucial for protecting the US and its allies’ dominant position in advanced chip production, which is the base of our leadership over China in the field of AI,” said McGuire.

Chris Griswold, Director of Policy at the American Compass think tank, also remarked, “The US and its allies have a significant lead over China in advanced AI chip production, but maintaining that lead requires us to stand united with our partners.”

He added, “There are clear loopholes in the export controls of semiconductor manufacturing equipment by allies, which China continues to exploit. We must ensure that ally’s export controls align with US standards.”