Intel has recently tested chipmaking equipment from ACM Research as it reviews options for its future manufacturing plans. The company evaluated wet etch tools for possible use in its advanced 14A chip process, which is scheduled to begin production in 2027. The testing has drawn attention because ACM Research has units in China and South Korea that are under United States sanctions.
ACM Research is a California based firm, but its Shanghai and South Korea units were added to a United States export blacklist in December 2024. The move followed concerns that these units could support China’s military and advanced chip development efforts. ACM has denied these allegations and said its United States operations are separate from its sanctioned entities. Intel has not confirmed whether it will ultimately use ACM equipment in its production lines.
The situation has raised questions among policymakers about national security and export controls. A key issue is whether ACM’s United States unit can legally supply tools to Intel without approval from the Bureau of Industry and Security. Current Entity List rules apply to foreign entities owned 50 percent or more by listed parties. However, guidance on how these rules apply to affiliated companies remains unclear. If regulators decide licenses are required, Intel could face delays and may need to qualify alternative suppliers for its 14A process.
If ACM tools are restricted, other wet cleaning and wafer processing equipment makers could benefit. Companies from Japan and the United States that meet sanction compliant standards may gain share at fabs in the United States and Europe. Single wafer cleaning accounted for a 33.2% revenue share in 2024, while the Asia Pacific region held 72.5% of the overall market. Suppliers with strong contamination control data for sub 10 nm processes and systems such as cryogenic CO2 cleaning, which is growing at a 12.2% CAGR, are likely to be well positioned as qualification decisions approach.
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