ASML faces potential U.S. restrictions on chip equipment service in China

ASML Holding faces increasing regulatory pressure as U.S. lawmakers propose stricter controls on semiconductor technology exports to China. John Moolenaar, chairman of the House China Committee, is pushing for the passage of the MATCH Act by the end of the year. This legislation aims to restrict not only the sale of new chip-making equipment but also the maintenance, service, and technical support for existing machinery already located at Chinese facilities.

The proposed act could impact international companies like ASML if their equipment utilizes American technology, components, or patents. While ASML is already restricted from exporting its most advanced EUV machines and certain DUV systems to China, the new measure could target service and software updates essential for keeping installed systems operational. Specific Chinese entities mentioned in relation to these potential restrictions include Huawei, SMIC, Hua Hong, CXMT, and YMTC.

Separately, financial trends show varying trajectories for semiconductor giants. ASML has demonstrated consistent revenue growth, recently establishing a collaboration with Taiwan Semiconductor Manufacturing for large-format photomasks. Meanwhile, Qualcomm has seen modest revenue fluctuations, recently renewing a global patent license agreement with Apple through 2027 and establishing a computing infrastructure collaboration with Amazon.