Republican lawmakers assail Intel for testing Chinese linked chipmaking tools

Intel faced a wave of criticism from Republican lawmakers on Wednesday after disclosures that it evaluated chipmaking equipment this year from ACM Research Inc., a U.S. incorporated manufacturer based in Fremont, California that has deep ties to China and two overseas affiliates that had been sanctioned by the U.S. government, people familiar with the matter said. The episode has revived cross party anxiety in Washington about the presence of Chinese linked tools inside America’s semiconductor supply chain and accelerated efforts to tighten rules for recipients of federal chip funding.

Lawmakers and former officials said the tests represent a potential national security exposure for facilities financed by the CHIPS and Science Act, which committed roughly 39 billion dollars to spur domestic semiconductor manufacturing. Critics argue that equipment with Chinese ties could be exploited remotely or physically to disrupt production at the heart of U.S. technology infrastructure.

Chris McGuire, identified as a former White House National Security Council official and a senior fellow at the Council on Foreign Relations, said Intel’s testing of ACM tools “highlights egregious gaps in U.S. technology protection policies and should not be permitted.” He warned that “Chinese tools could easily be remotely or physically manipulated by Beijing to degrade or even halt U.S. chip production,” adding that U.S. companies “should play no part in helping China improve its chipmaking tools, which are the foundation of all advanced technology development.”

In response to the disclosures, a bipartisan group of lawmakers introduced a bill in the House that would bar recipients of CHIPS Act grants from purchasing Chinese linked chipmaking equipment for 10 years. The measure, sponsored by Representative Jay Obernolte and Representative Zoe Lofgren, would cover a broad range of machinery from complex lithography systems to machines that slice and dice silicon wafers. Senators Mark Kelly and Marsha Blackburn signaled plans for companion legislation in the Senate in December.

Supporters of the legislation said the restrictions are necessary to prevent subsidized U.S. fabs from becoming vectors for foreign influence or supply chain interference. Industry trade groups have urged clarity on definitions and enforcement, arguing that overbroad rules could impede legitimate procurement and slow the CHIPS Act’s goals of restoring manufacturing capacity.

The incident comes against a backdrop of accelerating competition in semiconductor toolmaking. Chinese toolmakers have been increasing their global market share, and a House Select Committee on China report in October concluded that Beijing has sought since at least 2015 to build a competitive domestic semiconductor industry. At the same time U.S. policy has shown mixed signals, with some recent easing in export controls for certain chips to China drawing scrutiny.

Key details remain unresolved. Public accounts do not specify which ACM affiliates were sanctioned, which exact tools Intel evaluated, or the full scope and timing of the tests beyond occurring this year. Intel and ACM Research have not publicly detailed the trials or the specific equipment involved. Oversight hearings and the proposed legislation are likely to force more disclosures, and administration officials who oversee export controls and CHIPS Act compliance will face renewed pressure to define rules that balance security with the law’s manufacturing goals.