Intel has tested advanced chipmaking tools this year from ACM Research, a California-based firm with R&D and manufacturing units in China and South Korea, sources familiar with the matter said, sparking concern among U.S. lawmakers and national security experts. The tools, known as wet etch equipment, were evaluated for use in Intel’s 14A process, a cutting-edge manufacturing line scheduled for launch in 2027.
ACM’s overseas units were sanctioned last year by the U.S. for alleged ties to China’s military-backed chip programs. While ACM denies wrongdoing, the decision to test these tools has drawn criticism from China hawks who warn of potential technology transfers to Beijing and risks of sabotage or intellectual property leaks. Former White House official Chris McGuire said the move “highlights egregious gaps in U.S. technology protection policies” and should be prohibited, noting that Chinese-made equipment could be manipulated to disrupt U.S. chip production.
ACM said its U.S. operations are separate from the sanctioned units and operate under robust safeguards. The company confirmed shipments of three tools to a major U.S. chipmaker, which are undergoing testing, but declined to comment on whether Intel plans to integrate them into production. ACM has long-standing ties to China, including sales to sanctioned manufacturers such as YMTC and CXMT, and its Shanghai R&D facility forms the core of its global development operations.
Intel’s evaluation coincides with growing pressure on U.S. chipmakers that receive government subsidies to avoid using equipment from China-linked firms. Analysts note that ACM’s tools are 20% to 30% cheaper than competitors, creating competitive pressures while intensifying security concerns. The developments underscore China’s ongoing push to expand its presence in the global semiconductor market, a strategy that U.S. policymakers continue to monitor closely.
