US lawmakers raise concerns over Intel’s testing of tools made by Chinese-linked firm

By Alexandra Alper

WASHINGTON, March 4 (Reuters) – A bipartisan group of U.S. lawmakers led by Democratic Senator Elizabeth Warren and Republican Tom Cotton on Wednesday raised national security concerns over Intel’s testing of chipmaking tools made by ACM Research, as first reported by Reuters.

ACM Research , a Fremont, 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, CXMT 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 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 U.S. government on security matters.

ACM did not immediately respond to a request for comment for this story.

The company previously said it could not comment on “specific customer engagements,” but can confirm that “ACMR’s U.S. team has sold and delivered multiple tools from our Asian operations to domestic customers.” It also 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.

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.

“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,” they wrote.

“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,” they added.

(Reporting by Alexandra Alper; editing by Diane Craft)