Warren, Cotton Press Intel on its Reported Use of Chipmaking Tools Produced by Chinese State-Backed Company

Warren, Cotton Press Intel on its Reported Use of Chipmaking Tools Produced by Chinese State-Backed Company

"Given extensive national security restrictions on ACM subsidiaries, Intel's relationship with ACM is concerning."

"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."

Text of Letter (PDF)

Washington, D.C. - Today, U.S. Senators Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, and Tom Cotton (R-Ark.), led a bipartisan group of their Senate colleagues in sending a letter to Intel CEO Lip-Bu Tan raising serious national security concerns about reports that Intel tested semiconductor manufacturing tools produced by ACM Research, a Chinese state-backed company whose affiliates have been placed on the Department of Commerce Entity List.

Other signers of the letter include Senators Pete Ricketts (R-Neb.), Andy Kim (D-N.J.), Jim Banks (R-Ind.), and Elissa Slotkin (D-Mich.).

"Given extensive national security restrictions on ACM subsidiaries, Intel's relationship with ACM is concerning," wrote the Senators.

In December 2024, the Commerce Department blacklisted ACM Research Shanghai and ACM Research Korea for their role in the development or production of integrated circuits for military end use. Despite these restrictions, recent reporting indicates Intel tested two ACM-produced "wet-etch" tools for potential use in its most advanced chipmaking processes.

"Wet etch tools are a critical piece of semiconductor manufacturing equipment, essential to creating precise circuit patterns. ACM works directly with… [sanctioned companies that] have been identified by the U.S. government as linked to the People's Liberation Army (PLA) and China's defense industrial base," the Senators emphasized. "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 these Chinese military companies. Intel's actions risk providing an avenue to overcome U.S. national security restrictions on these companies, granting them access to proprietary process insights that could be repurposed to advance China's domestic semiconductor industry."

They continued: "Intel and AMC's reported relationship is also concerning given enormous taxpayer investment in Intel… As it stands, the U.S. taxpayer currently owns approximately 10 percent of Intel and is the company's biggest stakeholder. 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. 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."

The Senators requested detailed information about Intel's reported testing of ACM equipment, including what due diligence was conducted, whether Intel sought guidance from the Bureau of Industry and Security (BIS), and what safeguards are in place to prevent the transfer of sensitive process knowledge. They also asked for written confirmation that Intel would commit to refraining from testing or using equipment from manufacturers with Entity-Listed affiliates without prior authorization from BIS by March 20, 2026.

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