EUROPE RESISTS US CHIP EXPORT CURBS ON CHINA

The friction between Washington and Europe over semiconductor export restrictions has intensified as the U.S. pursues stricter controls on chip technology sales to China. At the core of the dispute is the scope of proposed restrictions. The U.S. MATCH Act would prohibit the sale of deep ultraviolet (DUV) lithography tools to China—machines that are roughly a decade old and represent older-generation technology. ASML, Europe's dominant chipmaking equipment manufacturer, has publicly questioned the logic of these controls. CEO Christophe Fouquet told TechCrunch in May that China can already access DUV tools through existing channels. Restricting decades-old equipment, he suggested, amounts to closing a barn door long after the horses have escaped. Europe's resistance reflects legitimate business concerns. ASML and other European chipmakers view extreme export controls as economically damaging without meaningfully hindering China's capabilities. Older-generation equipment remains widely available and functional, making unilateral U.S. restrictions appear ineffective while harming European manufacturers' revenues and competitiveness. The dispute underscores a fundamental divide in how Washington and Europe approach China's technological development. The U.S. strategy emphasizes maximum restrictions on all chip technology to prevent Chinese advancement. Europe, meanwhile, argues that overly broad controls lack strategic value and create unnecessary economic pain. Beyond business arguments, Europe is concerned about the precedent. Expanding export controls to increasingly outdated technology could invite retaliatory measures and splinter the global semiconductor supply chain further. As the U.S. continues tightening chip restrictions through various measures, European leaders face pressure to either align with American policy or develop independent strategies. The outcome will likely shape the structure of global semiconductor markets for years to come.