ASML Photo: VCG

Dutch semiconductor equipment giant ASML has pushed back against a US Congress proposal seeking to further restrict its sales of deep ultraviolet (DUV) lithography machines to China, saying that such measures would do more harm than good and could speed up China’s drive to develop homegrown alternatives. 

Chinese experts said the remarks underscore the complex calculations facing the company as global semiconductor competition intensifies. On the one hand, Washington’s unilateral tightening of export controls could weigh on both supply and demand across the global chip supply chain. On the other hand, decoupling attempts are helping foster stronger domestic competitors in China, which could ultimately erode ASML’s position in the Chinese market.

On a call with reporters following the release of the ‌company's third-quarter results, ASML’s Chief Financial Officer Roger Dassen said the passage of the US MATCH Act would speed up China's domestic development of competing technology, Reuters reported on Wednesday.

During the earnings call, ASML’s Chief Executive Officer Christophe Fouquet also noted that demand for semiconductor manufacturing equipment in China remains strong, supported by domestic investment in chip production, with continued construction of wafer fabrication plants expected to support demand in 2027 and beyond. 

ASML expects China to account for about 20 percent of its total sales this year, according to financial results released on Wednesday. 

Xiang Ligang, director-general of the Zhongguancun Modern Information Consumer Application Industry Technology Alliance, told the Global Times on Thursday that ASML’s strong quarterly results were primarily supported by the ongoing expansion of advanced manufacturing capacity fueled by artificial intelligence demand, which has kept orders for high-end lithography equipment elevated.

The ASML’s stance reflects a strategic dilemma shaped by multiple external pressures, Ma Jihua, a veteran tech industry analyst, told the Global Times on Thursday. The company is currently navigating a complex balancing act in its China market strategy: while seeking to expand their presence in China, they must also respond to US policies and demands, he said.

The Dutch company faces growing competition from China’s semiconductor sector and related equipment manufacturers, which are accelerating efforts to develop and manufacture critical tools such as lithography machines domestically, Xiang said, adding that as China’s domestic lithography equipment industry gradually becomes more competitive between 2028 and 2030, the market landscape could undergo significant changes. 

According to Xiang, AI development is generating demand across computing centers, servers, robots, smart vehicles and other areas. Chinese chips are increasingly serving these markets, supported by their ability to meet diverse requirements and their competitive pricing.

Ma also pointed out that although US restrictions have, in the short term, limited the flow of some advanced equipment and processes into China, they have not stopped Chinese tech firms from continuing to advance in mature-node manufacturing, equipment replacement, and independent innovation.

Chinese semiconductor companies are also expected to post strong revenue growth. Citing data from industry information platform chinadatapay.com, the Securities Times reported that consensus forecasts put the combined 2026 revenue of 146 A-share-listed semiconductor companies at 1.24 trillion yuan, up more than 70 percent on a comparable basis. 

The strong performance of China's chip industry is also reflected in export data. China's integrated-circuit exports reached $256.75 billion in the first eight months of 2026, up 103.9 percent year-on-year, according to customs data cited by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products. The chamber also reported a 95.8 percent increase in average export unit value.