MATCH Act Threatens Applied Materials’ Chinese Sales with DUV Ban, Service Freeze
U.S. legislators introduced the MATCH Act, banning sales of immersion DUV lithography and cryogenic etch tools to China and enforcing service bans on five named entities, including SMIC and Huawei. The bill’s FDPR clause obligates allied export controls within 150 days, threatening Applied Materials’ Chinese sales and maintenance revenue.
1. MATCH Act Provisions
The MATCH Act establishes an absolute ban on immersion deep ultraviolet lithography and cryogenic etch tools to China, eliminating all licensing pathways. It also invokes the Foreign Direct Product Rule, requiring the Netherlands and Japan to align export controls with U.S. standards within 150 days.
2. Service and Personnel Restrictions
Five Chinese firms—SMIC, CXMT, YMTC, Hua Hong and Huawei—are designated as Covered Facilities, subject to a servicing ban, a prohibition on U.S. engineers providing global support, and blanket license denials with no case-by-case exceptions.
3. Implications for Applied Materials
Applied Materials faces potential revenue loss as its Chinese tool sales and maintenance contracts come under the ban. The legislation could drive Chinese fabs toward domestic lithography development, risking lower yields and further reducing demand for U.S. equipment providers.