A bipartisan group of U.S. lawmakers has raised national security concerns over reports that Intel is testing semiconductor manufacturing tools developed by ACM Research, a company with strong ties to China. The concerns were outlined in a letter sent Wednesday to Intel CEO Lip-Bu Tan by lawmakers led by Democratic Senator Elizabeth Warren and Republican Senator Tom Cotton.
ACM Research, a California-based manufacturer of semiconductor equipment, maintains significant operational links to China, and two of its overseas subsidiaries have previously been targeted by U.S. sanctions. The company also counts Chinese firms such as YMTC and SMIC among its customers, both of which have been subject to U.S. restrictions. Lawmakers warned that ACM’s presence within Intel facilities could potentially expose sensitive chipmaking processes to entities connected with China.
In the letter, the lawmakers wrote that “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.” They expressed concern that such exposure could enable technology transfer or indirectly support China’s semiconductor and defense industries.
Intel responded in a statement emphasizing that ACM’s equipment is not part of its actual chip production lines. The company said that “ACM tools are not used in Intel’s semiconductor production processes,” and added that it fully complies with U.S. laws and regulatory requirements while maintaining regular communication with the U.S. government regarding security issues.
ACM Research did not immediately respond to requests for comment regarding the lawmakers’ concerns. However, the company has previously said it cannot discuss specific customer relationships. It has acknowledged shipping three pieces of equipment to a major U.S.-based semiconductor manufacturer for testing, noting that some of the tools have met required performance standards.
ACM has also denied posing any national security risk. The company has previously stated that its U.S. operations are “bifurcated and isolated” from its sanctioned Shanghai-based entity. It added that American customers are served directly by U.S.-based staff and that measures are in place to safeguard customer trade secrets.
The Chinese Embassy in Washington also did not immediately respond to requests for comment on the issue.
The letter was also signed by Democratic lawmakers Elissa Slotkin and Andy Kim, along with Republicans Jim Banks and Pete Ricketts. Their concerns highlight growing bipartisan scrutiny of China’s involvement in global semiconductor supply chains and potential security implications for U.S. technology infrastructure.
Concerns about ACM Research had already surfaced in October, when the U.S. House Select Committee on China said it had reviewed reports indicating that the company supplied semiconductor manufacturing equipment to a firm with U.S. operations that had also certified ACM tools for use in its production process.
Lawmakers also pointed out that Intel now carries additional responsibility because the U.S. government holds a financial stake in the company. They said this raises questions about Intel’s obligations to safeguard national interests and ensure that taxpayer-backed resources are not indirectly benefiting foreign competitors.
“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,” the lawmakers wrote. They further added that Intel’s connections with blacklisted Chinese firms raise concerns about whether government-backed funding could potentially support activities that threaten U.S. leadership in semiconductor manufacturing.
