Sources familiar with the matter revealed that U.S. tech giant Intel has tested chip production equipment from semiconductor equipment vendor ACM Research this year. Given the company's strong roots in China and the fact that two of its overseas subsidiaries are under U.S. sanctions, the move has raised national security concerns.

According to a Reuters report, two subsidiaries of California-based ACM Research, located in Shanghai and South Korea, were placed on the U.S. government's list of entities barred from receiving American technology last year, on suspicion of assisting the Chinese government in diverting commercial technologies for military purposes and producing advanced chips or chip manufacturing equipment. ACM has denied these allegations.

The two wet etch tools that Intel obtained and tested from ACM are primarily used to remove impurities from the surface of silicon wafers. Intel is evaluating whether the equipment can be applied in its most advanced chip manufacturing process, known as 14A, which is expected to enter use in 2027.

Reuters was unable to confirm whether Intel has decided to adopt ACM's equipment, and there is no evidence indicating that Intel has violated relevant U.S. regulations.
In a statement sent to Reuters, Intel did not directly respond to questions about whether it has tested the relevant equipment for the 14A chip manufacturing process. It only stated that it does not use ACM equipment in its semiconductor production processes and complies with all applicable U.S. laws and regulations.

U.S. hawks on China argue that Intel’s consideration of using equipment manufactured by a company with sanctioned subsidiaries in its cutting-edge production lines poses significant national security risks. They warned that this could allow Intel’s sensitive technologies to be transferred to China, ultimately leading to trusted Western equipment suppliers being replaced by China-linked enterprises, and even creating potential risks of sabotage by Beijing.

"Tools made in China are highly vulnerable to remote or physical manipulation by Beijing, which could degrade or even disrupt U.S. chip production," said McGuire, a former White House National Security Council official who is now a senior fellow at the Council on Foreign Relations. "U.S. companies should not be involved in helping China improve its chip manufacturing equipment, which underpins the development of all cutting-edge technologies."

Sources familiar with the matter revealed that U.S. tech giant Intel has tested chip production equipment from semiconductor equipment vendor ACM Research this year. Given the company's strong roots in China and the fact that two of its overseas subsidiaries are under U.S. sanctions, the move has raised national security concerns.

According to a Reuters report, two subsidiaries of California-based ACM Research, located in Shanghai and South Korea, were placed on the U.S. government's list of entities barred from receiving American technology last year, on suspicion of assisting the Chinese government in diverting commercial technologies for military purposes and producing advanced chips or chip manufacturing equipment. ACM has denied these allegations.

The two wet etch tools that Intel obtained and tested from ACM are primarily used to remove impurities from the surface of silicon wafers. Intel is evaluating whether the equipment can be applied in its most advanced chip manufacturing process, known as 14A, which is expected to enter use in 2027.

Reuters was unable to confirm whether Intel has decided to adopt ACM's equipment, and there is no evidence indicating that Intel has violated relevant U.S. regulations.
In a statement sent to Reuters, Intel did not directly respond to questions about whether it has tested the relevant equipment for the 14A chip manufacturing process. It only stated that it does not use ACM equipment in its semiconductor production processes and complies with all applicable U.S. laws and regulations.

U.S. hawks on China argue that Intel’s consideration of using equipment manufactured by a company with sanctioned subsidiaries in its cutting-edge production lines poses significant national security risks. They warned that this could allow Intel’s sensitive technologies to be transferred to China, ultimately leading to trusted Western equipment suppliers being replaced by China-linked enterprises, and even creating potential risks of sabotage by Beijing.

"Tools made in China are highly vulnerable to remote or physical manipulation by Beijing, which could degrade or even disrupt U.S. chip production," said McGuire, a former White House National Security Council official who is now a senior fellow at the Council on Foreign Relations. "U.S. companies should not be involved in helping China improve its chip manufacturing equipment, which underpins the development of all cutting-edge technologies."