Reports that Intel is testing semiconductor manufacturing equipment from companies subject to export controls closely tied to China have led experts to criticize the move, saying it 'highlights serious flaws in technology protection policies.'

Reuters reported that semiconductor giant Intel is testing semiconductor manufacturing equipment from a tool manufacturer that is subject to US export controls.

Exclusive: Intel has tested chipmaking tools from firm with sanctioned China unit, sources say | Reuters
https://www.reuters.com/world/china/intel-has-tested-chipmaking-tools-firm-with-sanctioned-china-unit-sources-say-2025-12-12/

Intel tests chipmaking tools from sanctioned China-focused tool maker, report claims — move could raise political and national security concerns, firm was backed by CEO Lip-Bu Tan's investment firm | Tom's Hardware
https://www.tomshardware.com/tech-industry/semiconductors/intel-tests-chipmaking-tools-from-sanctioned-china-focused-tool-maker-report-claims-move-could-raise-political-and-national-security-concerns-firm-was-backed-by-ceo-lip-bu-tans-investment-firm

ACM Research, a semiconductor manufacturing equipment manufacturer based in Fremont, California, USA, conducts most of its business in China. ACM Research's main customer is SK Hynix , a South Korean semiconductor vendor, and supplies them with wafer cleaning equipment.

ACM Research also has strong ties with the Chinese government, and in December 2024, the US government placed ACM Research's Shanghai and South Korea divisions under export controls for alleged involvement in the Chinese government's 'military use of commercial semiconductor technology' and 'manufacturing advanced semiconductors and semiconductor manufacturing equipment.' ACM Research claims that it has no involvement with the Chinese government.

Reuters reports that Intel has acquired semiconductor manufacturing equipment from ACM Research's Shanghai and South Korea divisions. The equipment, a wet etching tool used to remove unwanted parts from silicon wafers, the material used in semiconductors, is expected to be suitable for Intel's cutting-edge chip manufacturing process, 14A. The first semiconductors manufactured using Intel's 14A process are scheduled to appear in 2027.

Intel announces 14A process overview, improving performance per watt by 15-20% compared to 18A - GIGAZINE

Reuters reported that it could not confirm whether Intel had decided to add ACM Research's wet etching tools to 14A, nor could it find any evidence that Intel violated U.S. regulations. Intel responded to the Reuters report by issuing a statement saying, 'ACM Research's wet etching tools are not used in our semiconductor manufacturing processes and we comply with all applicable U.S. laws and regulations.'

ACM Research said it could not comment on 'specific customer transactions,' but acknowledged that 'ACM Research's US team has sold several tools developed in Asia to US customers.' ACM Research also announced that it has shipped three semiconductor manufacturing equipment to a major US semiconductor manufacturer, which is currently undergoing testing, and that some of the equipment has already been confirmed to meet performance standards.

In response to this report, China hawks have pointed out that 'the fact that Intel, which is partly owned by the U.S. government , is considering incorporating tools made by a company with a division subject to export controls into its cutting-edge manufacturing lines raises serious national security concerns.'

Following the Chinese government's expansion of export restrictions on rare earth minerals , President Donald Trump has largely rolled back his tough policies on semiconductor exports to China, allowing Nvidia to sell its cutting-edge AI chips in China.

US Department of Commerce approves export of NVIDIA H200 chips to China - GIGAZINE

However, concerns are growing among US lawmakers about the current situation in which Chinese semiconductor manufacturing equipment manufacturers are expanding into the global market. A bill has been introduced that would ban semiconductor manufacturers receiving hundreds of billions of yen in subsidies from the US government from using Chinese-made semiconductor manufacturing equipment by December 2025. Chris Maguire, who served on the National Security Council under President Joe Biden, told Reuters, 'Intel's adoption of ACM Research's wet etching tools highlights serious flaws in US technology protection policy and should not be tolerated.'