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

A bipartisan group of U.S. lawmakers is urging for a sales ban on chipmaking tools to China, specifically targeting ASML's Dutch exports of lithography machines crucial for advanced chip production. The group is calling for stricter restrictions on wafer fab equipment (WFE) exported to China, with exceptions only for tools that can be domestically manufactured in China. They are pushing for allied nations to implement similar export policies to ban sales of all advanced chipmaking tools to China. Lawmakers are concerned about Chinese companies reverse-engineering tools and subcomponents, potentially leading to the development of locally produced alternatives. The group emphasizes the need for tighter regulations on the servicing of WFE to limit the practical lifespan of installed equipment.