Ricketts, Kim to Introduce MATCH Act; Level the Global Playing Field for U.S. Tech

WASHINGTON, D.C. - Today, U.S. Senators Pete Ricketts (R-NE) and Andy Kim (D-NJ) announced that they will introduce the Multilateral Alignment of Technology Controls on Hardware (MATCH) Act. This bipartisan legislation modernizes U.S. export controls to ensure adversaries cannot buy "chokepoint" semiconductor manufacturing equipment (SME) technology from the United States or our partners that they cannot build themselves. Senators Jim Risch (R-ID) and Chuck Schumer (D-NY) co-sponsored this legislation. House companion legislation is led by Rep. Michael Baumgartner (R-WA-5).

By promoting harmonization of export controls among allies and closing servicing and entity-specific loopholes, the MATCH Act preserves the U.S. technological lead in the AI competition with China and eliminates the competitive disadvantage currently facing American firms.

"The ability to design and produce semiconductors lies at the heart of the technology competition with Communist China," said Senator Ricketts. "SME is an important dual-use technology. For too long, our export controls have been a patchwork of entity-based restrictions that Beijing easily bypasses using front companies. At the same time, U.S. restrictions on SME are stronger than those of our close allies and partners. This status quo puts American companies last. The MATCH Act strengthens our controls and creates a level playing field for U.S. companies."

"I'm leading this effort to keep the most advanced semiconductor manufacturing equipment out of the hands of China and other adversaries," said Senator Kim. "This bill not only strengthens our export controls regime but importantly reinforces using diplomacy to build a unified, effective approach alongside our allies and partners that safeguards these technologies and levels the competitive landscape. With this legislation, Congress can send a clear message to the world that our export controls are enduring and our bipartisan commitment to safeguarding America's competitive edge in innovation is strong. While continuing to control advanced chips is critical, we must also ensure that China does not gain the means to produce these technologies itself, and I look forward to working with my colleagues to address this challenge as part of a broader, multi-pronged effort."

"Idaho and America are at the leading edge of semiconductor innovation. It is vital we maintain this position by strengthening our export controls and closing loopholes that our adversaries exploit to obtain critical technologies like semiconductor manufacturing equipment," said Senator Risch. "The MATCH Act will prevent adversaries from undermining the U.S. semiconductor industry and threatening our national security."

"The United States should not be handing the Chinese Communist Party any access to technologies that fuel their military ambitions and jeopardize U.S. national security. As China works towards global domination of the chips industry, the MATCH Act would stop the flow of advanced semiconductor manufacturing equipment that China desperately needs to build up their own chip industry. If the U.S. is going to maintain a national security edge in AI, quantum computing, and other critical industries, and outcompete the CCP, the MATCH Act is a vital and necessary leap forward," said Senator Schumer.

"China has made it abundantly clear that it intends to dominate the technologies that underpin both our economy and our national defense," said Congressman Michael Baumgartner. "The United States cannot afford to leave open back doors that allow the Chinese Communist Party to acquire the tools it needs to leap ahead in semiconductor manufacturing. I introduced the MATCH Act to ensure that America and our allies move in lockstep to close these gaps, defend our technological edge, and safeguard the supply chains that power everything from our weapons systems to our critical infrastructure. This is about protecting American workers, American innovation, and American security for the long haul."

Key provisions of the MATCH Act include:

• Country-Wide Prohibition on "Chokepoint" Tools for Advanced Chipmaking: Prohibits the sale or servicing of the most essential chipmaking tools to any destination inside a country of concern, except U.S.- or allied-controlled chipmaking facilities.
• Tighter Restrictions on China's National Champions: Designates as covered facilities all chipmaking facilities run by ChangXin Memory Technologies (CXMT), Hua Hong, Huawei, Semiconductor Manufacturing International Corp (SMIC), and Yangtze Memory Technologies Corp (YMTC), including all subsidiaries and affiliates. Applies Entity-List-like restrictions on exports, servicing, and technical support to these facilities of all items subject to the Export Administration Regulations.
• Leverage for Diplomatic Negotiations: Prioritizes diplomacy with reasonable deadlines to achieve aligned multilateral controls. Includes a National Security Waiver if additional time is required.
• Creates a Level Playing Field: Chipmaking equipment supports China's military modernization. Currently U.S. unilateral controls are stricter than allied controls, resulting in allied companies backfilling U.S. tools. The MATCH Act ensures that controls will apply uniformly to U.S. and allied countries, in the interests of our collective national security. If allies cannot demonstrate progress within the 150-day deadline, the Act levels the playing field by implementing controls on foreign-produced items that use U.S. software, technology, or components.

BACKGROUND

The MATCH Act addresses two primary issues: Entity-Based Gaps, which allow adversaries to use front companies and subsidiaries to bypass restrictions, and Allied Asymmetry, where allies provide critical tools and servicing that U.S. firms are prohibited from selling.

The MATCH Act directs the Secretary of Commerce to identify all "chokepoint" equipment, such as DUV immersion photolithography machines, that adversaries cannot produce indigenously. It prohibits the sale or servicing of this technology to any destination within a country of concern. It also designates all facilities run by CXMT, Hua Hong, Huawei, SMIC, and YMTC as covered facilities, cutting off all foreign exports, servicing, and technical support.

SME are dual-use tools that support China's military modernization. The MATCH Act ensures that controls will apply uniformly to U.S. and allied countries, in the interests of our collective national security. If allies cannot demonstrate progress within the 150-day deadline, the Act directs the Department of Commerce to implement controls unilaterally. It expands U.S. jurisdiction over foreign-produced items that use U.S. software, technology, or components by applying the "Foreign Direct Product Rule."

ENDORSEMENTS

"America and its allies have a massive lead over China in advanced AI chip production, but keeping that edge requires that we and our friends be on the same page. Allied export controls on semiconductor manufacturing equipment suffer from meaningful gaps that China continues to exploit. We must ensure our allies align their export controls with American standards - through diplomacy if possible, but unilaterally if necessary. The stakes are too high to wait." - Chris Griswold, Policy Director, American Compass

"For years, gaps in semiconductor equipment controls have undermined America's most effective technology denial strategy. Although the United States has acted to restrict chokepoint tools, our allies don't always follow suit - and China continues to exploit the difference." - Ryan Fedasiuk, Fellow, China and Technology, American Enterprise Institute

"A strategy that aligns the U.S. and its allies in stopping the flow of advanced semiconductor manufacturing equipment to our adversaries is key to protecting U.S. technological advantages. When foreign suppliers of advanced chipmaking tools are not subject to the same rules as U.S. firms, it undermines the objectives of U.S. export controls. Closing gaps in the export control regime by partnering with our allies first and imposing extraterritorial controls second is a prudent strategy that advances U.S. national security." - Jacob Feldgoise, Senior Data Research Analyst, Center for Security and Emerging Technology (CSET)

"The MATCH Act is critical to protecting U.S. and allied dominance in advanced chipmaking, which is the foundation of our leadership over China in AI. Advanced chips are the lifeblood of AI and are one of the few things that China struggles to manufacture, as it cannot make these chips without U.S. and allied equipment. However, China is exploiting loopholes and asymmetries in U.S. and allied export controls on chipmaking equipment and components to purchase hundreds of billions of dollars' worth of advanced tools; chipmaking equipment is the largest export from the Netherlands to China, the second largest from Japan, and the third largest from the United States. The MATCH Act would close many of these loopholes and turn off the tap, which is among the most important steps we can take to preserve long-term U.S. allied leadership in semiconductor production, toolmaking, and AI." - Chris McGuire, Senior Fellow for China and Emerging Technologies, Council on Foreign Relations

"FDD Action supports the MATCH Act, which focuses on strengthening and aligning export controls on semiconductor manufacturing equipment. These tools are essential to protecting U.S. technological leadership and national security. By closing gaps and reinforcing coordination with allies, this bill helps prevent critical technologies from being diverted in ways that could undermine U.S. national security." - Alexandria Paolozzi Moore, Senior Director of Government Affairs, FDD Action

"For too long, the United States has borne the economic and political costs of semiconductor export controls while leaving room for foreign suppliers to free ride, backfill, or slow-roll their alignment. The MATCH Act creates a simple rule: either our allies match our controls on the most important tools and components for advanced semiconductors, or the United States closes the loopholes itself. That is how you turn a theoretical chokepoint into a real one, securing our AI supply-chain and technology leadership for years to come." - Samuel Hammond, Chief Economist, Foundation for American Innovation

"The Institute for Progress endorses the MATCH Act. Export controls on chipmaking tools have been critical to maintaining the U.S. lead in AI computing power, which itself underpins American superiority in AI capabilities. But gaps in these controls risk undermining these advantages. By strengthening chipmaking tool controls, the MATCH Act would better preserve U.S. AI leadership over the long term." - Institute for Progress

"Preserving and enhancing export controls on semiconductor manufacturing are one of the most important things that America can do to win the AI race against China. The MATCH Act is an important tool to help ensure American dominance in this area and to hold our allies' feet to the fire in holding the line on export controls on the most advanced technology humanity has produced." - Dmitri Alperovitch, Chairman, Silverado Policy Accelerator

"Export controls on chipmaking tools are the foundation of America's technology competition strategy with China. They are directly responsible for U.S. leadership in emerging technologies such as AI and quantum computing and defense technologies of the future. The MATCH Act would decisively close gaps in the controls that risk undermining their effectiveness in the long term, thus giving America an enduring lead in the technologies that will reshape the security landscape." - Saif M. Khan, former Director for Technology and National Security, National Security Council

Text of the MATCH Act discussion draft is available here.