A bipartisan group of U.S. lawmakers, led by Democratic Senator Elizabeth Warren and Republican Senator Tom Cotton, on Wednesday raised national security concerns about Intel testing chipmaking equipment produced by ACM Research, according to reports.
ACM Research, California-based producer of chipmaking equipment, has deep roots in China and two overseas units that were targeted by U.S. sanctions. Its customers include sanctioned Chinese companies such as YMTC and SMIC, sparking questions over whether ACM could pass sensitive information from Intel to Chinese customers, the lawmakers said.
“By operating in Intel’s facilities, ACM could gain exposure to cutting-edge chipmaking processes that may materially improve the quality and competitiveness of ACM and Chinese military companies,” the lawmakers said in a letter to Intel CEO Lip-Bu Tan dated Wednesday.
Intel and ACM Respond
Intel said in a statement that “ACM tools are not used in Intel’s semiconductor production processes,” adding that the company fully complies with U.S. laws and regulations and engages regularly with the U.S. government on security matters.
The company previously said it could not comment on “specific customer engagements,” but said it has disclosed the shipment of three tools to a “major U.S.-based semiconductor manufacturer,” which are being tested and some have met performance standards.
ACM previously said that it does not pose a national security threat, noting that its U.S. operations are “bifurcated and isolated” from the sanctioned Shanghai-based unit, adding that U.S. customers are supported directly by U.S. personnel, with robust safeguards to protect customer trade secrets.
Bipartisan Scrutiny of China Ties
The letter, also signed by Democrats Elissa Slotkin and Andy Kim as well as Republicans Jim Banks and Pete Ricketts, is a sign of bipartisan concern about China’s growing role in U.S. semiconductor manufacturing.
The House Selection Committee on China said in October it has “reviewed with concern reports that ACM Research … has sold (semiconductor manufacturing equipment) to a semiconductor manufacturer with U.S. operations that also formally certified ACM Research’s tools for use in its production line.”
The lawmakers on Wednesday also noted that Intel, which fended off calls for its CEO’s resignation from President Donald Trump in August over his alleged ties to China, faces unique responsibilities, since the U.S. government now owns a stake in it.
(With inputs from Reuters)
