Senators Question Intel’s Use of Chinese-Linked Chipmaking Equipment

A bipartisan group of senators led by Elizabeth Warren and Tom Cotton is raising national security concerns about Intel testing semiconductor manufacturing equipment from ACM Research, a company with significant Chinese connections. The lawmakers worry that ACM could share sensitive Intel technology with sanctioned Chinese firms.

WASHINGTON – Senators from both parties are expressing national security worries about Intel Corporation’s decision to test semiconductor manufacturing equipment produced by a company with strong ties to China.

Democratic Senator Elizabeth Warren and Republican Tom Cotton spearheaded the bipartisan effort Wednesday, sending concerns to Intel regarding ACM Research, a chipmaking equipment manufacturer based in Fremont, California.

ACM Research maintains substantial Chinese operations and has two international divisions that face U.S. sanctions. The company serves sanctioned Chinese firms including YMTC, CXMT and SMIC, raising fears that sensitive Intel information could be transferred to Chinese clients, according to the senators.

In their Wednesday letter to Intel CEO Lip-Bu Tan, the lawmakers stated: “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.”

Intel responded by clarifying that “ACM tools are not used in Intel’s semiconductor production processes,” emphasizing the company’s full compliance with U.S. laws and regular communication with government officials on security issues.

ACM Research did not provide immediate comment on the matter.

The company had previously stated it cannot discuss “specific customer engagements,” but confirmed that “ACMR’s U.S. team has sold and delivered multiple tools from our Asian operations to domestic customers.” ACM also disclosed shipping three tools to a “major U.S.-based semiconductor manufacturer” for testing purposes, with some meeting performance requirements.

The letter included signatures from Democrats Elissa Slotkin and Andy Kim, along with Republicans Jim Banks and Pete Ricketts, demonstrating cross-party anxiety about China’s expanding influence in American semiconductor production.

The House Selection Committee on China previously expressed concern in October about ACM Research selling semiconductor manufacturing equipment to a U.S. semiconductor company that certified ACM’s tools for production use.

The senators also highlighted Intel’s special obligations given the federal government’s ownership stake in the company, particularly following CEO Lip-Bu Tan’s challenges with former President Trump over alleged Chinese connections.

“This raises important questions about Intel’s fiduciary responsibility and approach to safeguarding the public interest, including how the company benefits American economic interests and taxpayers,” the lawmakers wrote.

They added: “Intel’s entanglements with blacklisted Chinese companies calls into question whether taxpayer dollars are subsidizing activities that could directly threaten U.S. national security and leadership in semiconductor manufacturing.”