Intel tested chipmaking tools this year from ACM Research, a U.S. company that makes semiconductor equipment. ACM has Chinese branches under U.S. restrictions. Sources say this test has raised security questions, especially since Washington is watching China’s tech supply chain more closely.
The equipment tested was a couple of wet etch tools used to process silicon wafers. Intel was considering them for its upcoming 14A process, its most advanced tech, coming in 2027. Reuters couldn’t confirm if Intel will use these tools. There’s no sign that Intel broke any U.S. rules.
ACM said they couldn’t talk about specific clients. They said their U.S. team sent tools from their Asian operations to American customers, including three machines sent to a major U.S. semiconductor manufacturer for testing.
Worries Grow About Tech Transfer and Supply Chain Problems
Some national security experts weren’t happy that Intel tested equipment from a company with restricted branches. This is partly because Intel gets funding from U.S. government subsidies for semiconductors. Critics worry that using tools linked to Chinese operations could mean losing intellectual property, supply chain interference, or U.S. toolmakers being pushed out of the market.
This comes at a tricky time. Even after China limited rare-earth mineral exports, President Donald Trump eased some chip export controls and recently let Nvidia sell high-end AI chips to China. Still, some politicians from both parties are trying to pass a law to stop U.S.-subsidized chipmakers from using semiconductor tools made in China.
Chris McGuire, a former National Security Council official and senior fellow at the Council on Foreign Relations, said Intel’s testing reveals significant gaps in U.S. tech protection policies. He thinks Chinese-linked tools could be used to mess with U.S. semiconductor production.
ACM Research Says They Have Good Safeguards
ACM says there’s no national security risk. They say their American operations are separate from their restricted Shanghai branch. U.S. customers are supported only by people in the U.S. The Chinese embassy in Washington called the concerns political and said the U.S. should stop overstretching the idea of national security.
ACM was started in 1998 by David Wang. They have big R&D and manufacturing facilities in Shanghai. Their clients in China include companies subject to U.S. trade restrictions, such as YMTC, CXMT, and SMIC. SMIC is responsible for 14% of ACM’s income.
ACM has been working to increase its presence in the U.S. In 2023, they opened a large facility in Hillsboro, Oregon, near Intel’s R&D and manufacturing campus. This hub is meant to help U.S. clients test tools locally. Kerrisdale Capital reports that the Oregon site is key to ACM’s work with Intel. They mentioned tool qualifications in 2023 and more deliveries in 2024. ACM says they aren’t a major supplier to large U.S. chipmakers.
Though not large, ACM is gaining traction globally. Gartner Research ranks them number 24 worldwide in semiconductor equipment. They also have 8% of the cleaning tools market.
A recent report from the House Select Committee on China noted that China is expanding its semiconductor equipment manufacturing. They’re worried that ACM tools have been approved for use inside a U.S.-based production line.
According to TechInsights Vice Chair Dan Hutcheson, Chinese tools, including those from ACM, are often 20% to 30% cheaper than those from Western companies like Applied Materials and Lam Research. This price difference pressures global competitors and tempts chip manufacturers to cut costs.
Intel’s Choice Could Shape U.S. Semiconductor Plans
Intel’s assessment of ACM equipment highlights the challenge U.S. leaders face. They need to increase chipmaking at home while addressing security risks posed by China’s fast-growing semiconductor industry. What Intel decides could change how American chipmakers handle costs, geopolitical risks, and new government rules going forward.
As the U.S. and China compete more in advanced tech, decisions made in corporate testing labs could play a bigger role in the global race for semiconductor dominance.
