Micron Technology, the largest U.S. memory-chip manufacturer, has been a prominent advocate for new congressional legislation that would broaden export restrictions on equipment used by Chinese rivals to produce memory chips, according to individuals familiar with the matter.
The U.S. House of Representatives Foreign Affairs Committee is scheduled to vote on the so-called MATCH Act, a bill intended to tighten the existing regulatory framework governing chipmaking tools. The legislation seeks to plug perceived loopholes in current export curbs and to exert pressure on non-U.S. suppliers that sell equipment to Chinese chip fabs so they would adhere to restrictions similar to those applied to American vendors such as Lam Research and Applied Materials.
Under the draft legislation, the scope of covered facilities would include plants operated by China’s ChangXin Memory Technologies (CXMT), Yangtze Memory Technologies (YMTC), and Semiconductor Manufacturing International Corp (SMIC), along with technologies deemed critical across the country.
People familiar with Micron’s outreach say the company has argued to lawmakers that Washington must act more forcefully to limit China’s progress in the memory market. They say Micron has portrayed increased U.S. measures as necessary to prevent China from gaining dominant positions in memory manufacturing similar to its influence in other sectors, and has framed the issue as one related to national security.
Micron did not provide comment in response to requests. Representatives from CXMT, YMTC and SMIC likewise did not respond to requests for comment, according to the people familiar with the outreach.
Global memory production remains led by South Korean firms Samsung Electronics and SK Hynix, with Micron ranking as the third-largest producer and serving as the only significant U.S.-based supplier. Despite existing U.S. Commerce Department curbs, YMTC and CXMT have been expanding their capabilities. YMTC has been subject to a restricted trade list since 2022, while advanced CXMT facilities have been affected by U.S. export limitations.
As currently written, the MATCH Act would extend restrictions to additional categories of equipment destined for China, including deep ultraviolet (DUV) immersion systems - a market segment dominated by the Netherlands-based ASML. The bill would also create statutory guidance for imposing restrictions if diplomatic avenues fail and would mandate that foreign firms, including ASML, obtain licenses to service covered equipment at specified facilities.
Sources said Micron engaged with lawmakers during the drafting of the measure. About a month ago, Micron CEO Sanjay Mehrotra participated in a closed-door roundtable with members of the House Foreign Affairs Committee. He also held a separate roundtable last month with Republican members of the Senate Banking Committee, the sources added.
Micron, headquartered in Boise, Idaho, is constructing a large-scale facility in New York. Other industry participants are also lobbying on the bill, one source said, identifying Tokyo Electron and U.S. toolmakers Lam Research, Applied Materials and KLA as stakeholders that have seen sales affected by export controls.
In a related development this month, the Commerce Department released images showing ASML CEO Christophe Fouquet meeting with U.S. Commerce Secretary Howard Lutnick. The MATCH Act is one of several export-control-related bills the House Foreign Affairs Committee plans to vote on; others address Commerce Department licensing processes, interagency coordination, the Entity List, enforcement and penalties.
A staffer for the House Foreign Affairs Committee described the package of measures as the most significant legislative effort in this area since the Export Control Reform Act of 2018. Kate Koren, who left the Commerce Department’s Bureau of Industry and Security (BIS) earlier this year and now works at the Center for Strategic and International Studies, said leadership at the bureau has not been performing effectively.
"It seems there’s a pretty strong bipartisan consensus that BIS has not really been functioning as it should be over the past year," Koren said, reflecting concerns cited by people familiar with the situation. Reuters has reported previously that the bureau experienced internal turmoil and delayed new restrictions during a period of detente with China linked to trade discussions, the people said.
A BIS spokesperson did not immediately respond to requests for comment, the individuals added.
Should the MATCH Act and other measures clear committee votes, they would still face additional steps before becoming law. A companion bill exists in the Senate and the measures could ultimately be folded into the National Defense Authorization Act as an amendment, according to the people familiar with the legislative process.
Key Points
- Micron is actively pressing Congress to broaden export restrictions on chipmaking equipment supplied to Chinese memory producers, emphasizing national-security concerns and competition in the memory market.
- The MATCH Act would expand controls to additional equipment categories, require servicing licenses for foreign vendors at covered Chinese facilities, and target CXMT, YMTC and SMIC operations.
- The proposal affects multiple sectors including semiconductor manufacturing, equipment suppliers, and national-security-related trade controls, with foreign toolmakers and U.S. vendors both engaged in lobbying.
Risks and Uncertainties
- Legislative uncertainty - The MATCH Act and related bills must pass committee stages, potentially move through the Senate and be signed into law; committee approval is only one step in a longer process, which creates uncertainty for industry stakeholders.
- Commercial impact on equipment vendors - Companies such as ASML, Tokyo Electron, Lam Research, Applied Materials and KLA may face sales and servicing limitations if restrictions expand, affecting revenues in the semiconductor equipment sector.
- Effectiveness of enforcement - Concerns about the Bureau of Industry and Security’s execution of export controls have been raised, introducing uncertainty about how consistently and effectively any new restrictions would be enforced.
Summary
Micron has been a central proponent of congressional action to close perceived gaps in U.S. export controls on semiconductor manufacturing equipment bound for Chinese memory producers. The MATCH Act, scheduled for a House Foreign Affairs Committee vote, would broaden restrictions, require service licenses for foreign vendors at designated facilities and target specific Chinese memory and chipmaking firms. Micron’s engagement with lawmakers has included closed-door discussions by its CEO, and other industry participants are lobbying both for and against various elements of the bill. Even if approved by committee, the measures would face further legislative hurdles before becoming law.