U.S. escalates chip war: Netherlands faces forced ASML export ban to China

The United States is preparing to force the Netherlands to ban ASML from selling virtually all chip-making equipment to China, marking a significant escalation in Washington's campaign to restrict Beijing's access to advanced semiconductor technology.

A bill currently before Congress—the Match Act—would compel U.S. allies to adopt American export controls on sensitive technologies. For ASML, the world's sole producer of extreme ultraviolet lithography machines used to manufacture cutting-edge chips, this means a complete halt to sales of its older deep ultraviolet (DUV) systems to Chinese customers. The company would also be barred from servicing machines already installed in China.

The Dutch government is already under pressure. Since 2023, Washington has successfully restricted ASML's exports of its most advanced EUV machines and newer DUV models to China. The Match Act would eliminate the remaining sales channel—older DUV equipment that ASML can currently ship.

If the Netherlands refuses compliance, the legislation authorizes U.S. sanctions. That's not an empty threat: ASML depends on American suppliers for critical components. Past U.S. threats to disrupt those supply chains have already convinced Dutch officials to tighten export rules.

Dutch diplomats are lobbying hard in Washington to kill the Match Act, according to NU.nl, but prospects look grim. The bill has bipartisan support and is on track to be folded into the annual defense authorization—legislation that almost always passes.

The timing matters. China has been racing to build domestic chip production capacity, and restricting access to ASML's equipment would significantly slow that effort. The machines are essential for producing the processors that power AI systems, supercomputers, and advanced military hardware—all areas where the U.S. sees China as a strategic competitor.

For ASML, the stakes are financial. China represented a substantial portion of the company's revenue before earlier restrictions took effect. A complete ban on DUV sales and maintenance would cut off one of the few remaining revenue streams from the Chinese market.

The Match Act represents a shift from indirect pressure to direct coercion. Rather than asking allies to align export policies voluntarily, Washington is preparing to mandate compliance and punish defiance. Whether that approach strengthens the coalition against Chinese tech advancement or fractures it by overriding sovereign decision-making remains to be seen.

What's clear: ASML, a Dutch company, is being used as a lever in a contest it didn't choose to enter. And the Netherlands is running out of room to maneuver.