US Lawmakers Propose Blocking DUV Chip Equipment Exports to Chinese Semiconductor Firms

A bipartisan group of U.S. senators has introduced legislation that would ban the export of advanced deep ultraviolet (DUV) lithography and etching equipment to Chinese semiconductor companies. The proposed restrictions would target firms including Huawei, SMIC, YMTC, and CXMT. The legislation, if enacted, would apply to mature-node chipmaking tools manufactured by companies like ASML in the Netherlands and Tokyo Electron in Japan. The restrictions would expand current U.S. controls that have focused primarily on extreme ultraviolet (EUV) equipment and advanced node production. The senators argue that the targeted companies have ties to China's military and that unrestricted access to DUV equipment has allowed Chinese chipmakers to build out significant manufacturing capacity despite existing U.S. restrictions. Currently, China leads worldwide chipmaking capacity in mature nodes. The proposed ban would limit Chinese firms' ability to expand production using equipment from U.S. allies, marking an escalation in semiconductor trade restrictions. The bill would require the Commerce Department to deny export licenses for covered equipment shipments to designated Chinese entities. It represents the most significant proposed expansion of semiconductor export controls since the Biden administration implemented its restrictions in 2022.