The House Select Committee on China is urging stricter regulations for firms that produce semiconductor manufacturing equipment, expressing worries that these companies are enhancing China’s chip-making capabilities.
A new report released Tuesday revealed that last year, Chinese firms invested $38 billion in semiconductor manufacturing tools from five leading companies in the U.S. and its allied nations: ASML, Tokyo Electron, Applied Materials, KLA, and Lam Research.
This figure accounts for a substantial 39% of the total revenue from these sales, according to the report.
“They’re expanding their interests at the expense of America’s national security,” stated House China Committee Chairman John Moolener (R-Mich.). “We cannot let our greatest adversary gain access to this vital equipment—or we risk losing the technological arms race.”
The committee’s report advocates for a “dramatic” increase in bans and licensing requirements for chip-making equipment across the nation, arguing that current company-specific export controls are falling short.
Moreover, lawmakers are pushing for enhanced collaboration between the U.S. and its allies regarding export regulations. The report highlighted that non-American manufacturers like ASML and Tokyo Electron are subject to fewer limitations compared to their U.S. counterparts.
The report also mentioned that the U.S. might broaden the usage of the Foreign Direct Product Rule, which applies export controls to foreign goods utilizing U.S. technology, to curb sales in allied countries.
“Selling the Chinese Communist Party the chips necessary for military modernization and human rights abuses is illogical,” remarked Rep. Raja Krishnamoorthi (D-Ill.), the committee’s ranking member, in a statement.
“But allowing them to purchase the machinery and tools to create those chips is even more senseless,” he added.
This report arrives amid ongoing discussions in Washington regarding strategies to outpace China in the realm of artificial intelligence (AI), with chips being a focal point of this dialogue.
This summer, the Trump administration encountered criticism from both sides when it permitted Nvidia and AMD to restart sales of certain advanced chips to China. Subsequently, the chipmaker committed to donating at least 15% of the revenue from these transactions to the U.S. government.
