Recently, American chip giant Intel has found itself embroiled in a national security controversy, as reported by Reuters. According to the disclosure, Intel is testing equipment from a supplier to assess if these devices can be used for the company’s most advanced 14A chip manufacturing process. The supplier, with strong ties to the Chinese Communist Party and some units under U.S. sanctions, has led Republican lawmakers to accuse Intel of jeopardizing U.S. national security.
Intel is testing tools intended for the development of its current most sophisticated 14A chip manufacturing process, considered crucial in countering TSMC. However, ACM Research, based in California, operates mainly in Shanghai, and two of its subsidiaries were banned by the U.S. government last year for allegedly supporting the PLA in advancing chip technology.
While this technology testing is still in the evaluation stage, Republican lawmakers are expressing strong concerns. They believe such cooperation could result in the outflow of America’s most cutting-edge technological know-how and potentially allow China to insert “hardware and software vulnerabilities” into the core U.S. supply chain.
Senator Marsha Blackburn stated in a press release, “Testing China-associated tools for U.S. chip manufacturing is akin to opening the door for China to manipulate or compromise our most advanced semiconductor capabilities. Intel is putting American national and economic security at risk, which is highly reprehensible.”
Blackburn seized this opportunity to urge the passing of the CHIPS Equipment Quality and Security Act, which she and Mark Kelly initiated. The bill prohibits any enterprise receiving CHIPS Act subsidies from using China-related equipment in their government-supported expansion plans.
The act also calls for the establishment of strict hardware and software reviews to prevent “remote backdoor” threats to U.S. production line security.
Experts caution that during the testing process, Intel could unintentionally disclose sensitive process parameters to supplier engineers.
Chairman of the House China Commission, John Moolenaar, analyzed that Intel has received generous support from American taxpayers amounting to billions of dollars, and its corporate goals should align with national interests.
“If we subsidize Intel while allowing the introduction of Chinese equipment, it is the fastest way to erase America’s advantage in AI chip technology,” he said. “This is not just a business decision but a serious national security risk.”
As the Trump administration’s policies towards China continue to tighten and call for “keeping the supply chain clean,” Intel is facing unprecedented scrutiny.
Earlier this year, Reuters exclusively reported that Republican Senator Tom Cotton wrote to Intel’s Chairman expressing concerns about the relationship between the newly appointed CEO, Lip-Bu Tan, and Chinese companies, referencing a recent criminal case involving a company he previously served, Pactera Technology International.
With the accelerated push for the CHIPS Equipment Quality and Security Act, Intel may be compelled to completely eliminate all China-linked equipment suppliers before mass-producing 14A chips.