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US lawmakers express concern about Intel's testing tools from a China-linked firm

As reported first by.

ACM Research is a California-based producer of chipmaking equipment that has deep roots in China and two overseas units which were sanctioned by the U.S. ACM Research's customers include Chinese companies sanctioned by the U.S. such as YMTC, SMIC and YMTC. This raises questions about whether ACM can pass sensitive Intel information to Chinese clients.

The lawmakers wrote to Intel CEO Lip Bu Tan on Wednesday that "by operating in Intel's facility, ACM can gain exposure to cutting edge chipmaking processes which may materially improve quality and competitiveness for?ACM as well as Chinese military companies."

Intel stated in a statement that "ACM Tools are not used in Intel’s semiconductor production processes." The company also said that it fully complies to U.S. laws, regulations and works regularly with the U.S. Government on security issues.

ACM didn't immediately respond to the request for comment on this story.

The company had previously said that it couldn't comment on "specific engagements" with customers, but it revealed the shipment of three tools to a major U.S. semiconductor manufacturer. These are currently being tested and many have already met performance standards.

ACM has previously stated that it does pose a threat to national security, noting that the U.S. unit sanctioned in Shanghai is "bifurcated" and "isolated" from its U.S. operation. It also added that U.S. clients are directly supported by U.S. personnel with robust safeguards protecting customer trade secrets.

The Chinese Embassy at Washington has not responded to a comment request immediately.

The letter is also signed by Democrats Elissa slotkin and Andy Kim, as well as Republicans Jim Banks, Pete Ricketts. It shows a bipartisan concern over China's increasing role in the?U.S. The semiconductor industry.

The House Selection Committee on China stated in October that it had "reviewed reports with concern?that ACM Research...?has sold (semiconductor production equipment) to a U.S. semiconductor manufacturer who also formally certified ACM Research tools for use on its production line."

On?Wednesday, the lawmakers noted that Intel faces special responsibilities because of its U.S. Government stake. Intel had resisted calls from President Donald Trump for his CEO to resign in August due to his alleged ties with China.

They wrote: "This raises important questions about Intel’s fiduciary responsibilities and?approach towards safeguarding the public interests, including how?the company benefits American taxpayers and economic interests,"

They added that "Intel’s involvement with Chinese companies on the blacklist calls into question if taxpayer dollars are subsidizing activity which could directly threaten U.S. National Security and leadership in semiconductor manufacture." (Reporting and editing by Diane Craft, Thomas Derpinghaus and Alexandra Alper)

(source: Reuters)