Leader Schumer And Senators Kim, Ricketts, Risch Introduce MATCH Act to Level the Global Playing Field for U.S. Tech

Washington, D.C. - Senate Democratic Leader Chuck Schumer (D-NY) and U.S. Senators Andy Kim (D-NJ), Ranking Member of the Subcommittee on National Security and International Trade and Finance on the Senate Committee on Banking, Housing and Urban Affairs, Pete Ricketts (R-NE), and Jim Risch (R-ID) introduced the Multilateral Alignment of Technology Controls on Hardware (MATCH) Act. This bipartisan legislation would modernize 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.

"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 Leader Schumer.

"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."

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 levels the playing field for American firms.

Key provisions of the MATCH Act include:

1.Country-Wide Prohibition on "Chokepoint" SME: Prohibits the sale of the most essential SME to any destination inside a country of concern. This includes, at a minimum, Deep Ultraviolet (DUV) immersion lithography and cryogenic etch tools for advanced and legacy chips.

2.Tighter Restrictions on China's National Champions: Designates as covered facilities all fabs 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.

3.Leverage for Diplomatic Negotiations: Underscores the prioritization of a diplomatic approach to achieving aligned multilateral controls by reinforcing diplomatic negotiations with reasonable deadlines. Includes a National Security Waiver if additional time is required.

4.Leveling the Playing Field: SME is a critical dual-use component that supports 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. It expands U.S. jurisdiction over foreign-produced items that use U.S. software, technology, or components (applying the "Foreign Direct Product Rule").

The MATCH Act addresses two primary issues: Entity-Based Gaps, which allow adversaries to use front companies and subsidiaries to bypass restrictions, and multilateral gaps, where differences in controls have allowed adversaries to procure critical tools and servicing from allied firms 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 is 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."

"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)

"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

"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

"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

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