U.S lawmakers demand sales ban on chipmaking tools to China — bipartisan group targets ASML's Dutch exports of lithography machines used to create advanced chips

Source: Tom’s Hardware

Image credit: TSMC

Background

A group of U.S. lawmakers this week sent a letter to the U.S. State and Commerce Departments calling for reinforced restrictions on wafer fab equipment (WFE) exported to China. The proposal seeks to restrict the sale of virtually all chipmaking tools to the People’s Republic of China (PRC), except for those that can be manufactured domestically in China. The lawmakers also urge the United States to work with allied nations to implement similar export policies, effectively banning sales of all advanced chipmaking tools to the PRC.

Lawmakers’ Concerns

Incomplete Existing Controls

• Current controls limit certain foreign‑produced “chokepoint tools” (e.g., advanced lithography systems by ASML and sophisticated etching and deposition tools by Tokyo Electron) only when destined for specific Chinese entities, rather than applying broad country‑level restrictions.

Enforcement Difficulties

• Once equipment enters China, verification visits require approval from Chinese authorities, which can take weeks or months and are conducted under supervision.
• This makes it hard to ensure that Chinese companies such as SMIC do not continue developing process technologies using advanced tools, or that entities funded by Huawei or the Chinese government cannot reverse‑engineer these machines.

Reverse Engineering & Spare Parts

• Chinese firms retain access to subcomponents of chipmaking equipment, enabling them to repair existing tools and reverse‑engineer parts.
• Without tighter export controls on spare parts, China could eventually replace foreign equipment with locally developed alternatives.

Servicing of WFE

• Current rules allow certain restricted advanced systems to be serviced as long as they are installed at an approved buyer.
• Limiting servicing could reduce the practical lifespan of already installed equipment, further curbing China’s capabilities.

Requests to the Administration

“We urge the Administration to press allies to implement countrywide controls on key chokepoint semiconductor manufacturing equipment and subcomponents: that is, all equipment and subcomponents that China cannot produce indigenously. This engagement should include clear and reasonable deadlines, after which the United States should be prepared to act to close remaining gaps itself if necessary, including by prohibiting the use of U.S.-origin components in the production of chokepoint tools destined to China.”

• The letter calls for a briefing within the next month on the Administration’s strategy for securing allied cooperation on countrywide controls and the timeline for achieving this goal.
• Lawmakers state they are ready to work on a bipartisan basis to ensure the export‑control regime and supporting alliances are adequate for the challenge.