Fresh scrutiny has emerged around Intel’s supply chain after sources said the company tested chipmaking tools this year from a supplier with strong links to China and units under United States sanctions.
According to 2 sources with direct knowledge, Intel evaluated equipment from ACM Research, a Fremont based chipmaking tool company, for potential use in its most advanced manufacturing process known as 14A. This process is planned for an initial rollout in 2027. The tools in question were wet etch tools, which are used to remove material from silicon wafers during semiconductor production.
ACM Research has 2 overseas units, based in Shanghai and South Korea, that were barred last year from receiving United States technology over claims they supported China’s military linked technology development. ACM has denied these allegations. There is no evidence that Intel violated any United States regulations, and it is not clear whether the company plans to adopt the tools for production.
Intel said in a statement to a news agency that ACM’s tools “are not used in our semiconductor production process, and we comply with all applicable U.S. laws and regulations.” The company declined to comment on whether the tools were tested for the 14A process.
ACM said it could not comment on “specific customer engagements” but confirmed that its United States team has sold and delivered multiple tools from its Asian operations to domestic customers. It also disclosed shipments of 3 tools to a “major U.S.-based semiconductor manufacturer,” some of which met performance standards.
The testing has raised concern among national security experts, who warned of risks such as technology transfer, reduced reliance on Western suppliers, and possible sabotage. “Chinese tools could easily be remotely or physically manipulated by Beijing to degrade or even halt U.S. chip production,” said Chris McGuire, a former National Security Council official, adding that United States companies should not aid China’s chipmaking progress.
ACM said it does not pose a security threat, stating that its United States operations are isolated from its sanctioned Shanghai unit and that customer trade secrets are protected. The Chinese embassy in Washington said, “Normal trade and economic cooperation between companies should not be politicized.”
Founded in 1998, ACM Research is led by CEO David Wang, who owns over 57% of voting shares. While headquartered in California, most of its research and development takes place in China. The company also supplies equipment to sanctioned Chinese chipmakers including YMTC, CXMT, and SMIC, which accounts for 14% of its sales.
ACM ranks 24th globally in semiconductor equipment, with an 8% share in cleaning tools. Its products are estimated to be 20% to 30% cheaper than those of major rivals, adding to competitive pressure across the industry.
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