Lawmakers Push for Broader Semiconductor Equipment Ban on China
U.S. lawmakers are advocating for an expanded ban on importing semiconductor manufacturing equipment to China. This follows a bipartisan investigation that found Chinese semiconductor companies had spent $38 billion on high-performance machinery last year.
A discrepancy in regulations among the United States, Japan, and the Netherlands allowed non-U.S. chip equipment manufacturers to sell items that American companies were barred from selling to certain Chinese firms. This information comes from a recent report by the U.S. House of Representatives Special Committee on China, which was released on Tuesday.
The committee has urged the U.S. and allied nations to implement a comprehensive ban on all chip manufacturing tool sales to China, rather than just targeting select Chinese manufacturers.
The $38 billion in purchases were made from five major semiconductor manufacturing equipment suppliers, marking a 66% increase since 2022 when numerous export restrictions were imposed. This figure represents nearly 39% of total sales from Applied Materials, Lam Research, KLA, ASML, and Tokyo Electron.
The report emphasized that these sales have bolstered China’s competitiveness in semiconductor manufacturing, which has broader implications for human rights and global democratic values.
Both Democrats and Republicans in the U.S. have sought to limit China’s capability to produce microchips, essential for fields like artificial intelligence and military advancements. The two nations are also competing to deliver advanced technologies, such as AI data centers, to other countries.
Mark Doherty, president of Tokyo Electron U.S., indicated that sales in the Chinese market are beginning to decline this year, partly due to the newly introduced regulations. He expressed hope for enhanced collaboration between the U.S. and Japan.
Doherty noted in an interview that, from a U.S. viewpoint, while some objectives have been set, expected results have not yet materialized.
ASML and KLA declined to comment, while Applied Materials and Lam Research did not respond to inquiries. The committee mentioned that the tool manufacturers assisted with the report and were informed of its conclusions.
Three Chinese firms that are important clients for these tool makers—SwaySure Technology Co, Shenzhen Pengxinxu Technology Co, and SiEn (Qingdao) Integrated Circuits Co—are particularly wary about security issues.
Last year, these companies were cautioned in a letter to the Commerce Department from Senator John Mourenner (R-Michigan) and committee member Raja Krishnamousi (D-Illinois), due to their connections to a covert network supporting Huawei Technology. As a result, U.S. authorities banned exports to them in December.
The report suggested that a more extensive ban should include stricter controls on the types of parts that China could utilize to produce its own semiconductor manufacturing tools.
Craig Singleton, a senior researcher at the Democracy Foundation, pointed out that China is attempting to overhaul its entire supply chain. He remarked, “What once was a niche tool field has now evolved into a fierce battleground.”
