According to two sources familiar with the matter, Intel tested two ACM wet-etch tools this year for potential use in its forthcoming 14A manufacturing process, slated for an initial rollout in 2027. Wet-etch systems are crucial for removing layers of material from silicon wafers during advanced chip fabrication.
Reuters could not confirm whether Intel plans to integrate ACM tools into the 14A node. The news agency also found no evidence of any regulatory violations. ACM acknowledged that it had shipped several tools from its Asian operations to U.S. customers — including one “major U.S.-based semiconductor manufacturer” — some of which have passed performance tests.
National Security Concerns Rise
The tests nonetheless sparked immediate criticism from national-security analysts, in part because two ACM subsidiaries — in Shanghai and South Korea — were placed under U.S. sanctions last year for allegedly supporting China’s military-linked technology ambitions. ACM denies those allegations and says its U.S. business is strictly separated from sanctioned operations, with safeguards in place to protect customer intellectual property.
But China-focused policy hawks remain unconvinced. They argue that any foothold for Chinese-linked toolmakers inside the U.S. semiconductor ecosystem increases risks of technology transfer, espionage, or operational sabotage.
Chris McGuire, a former adviser on the White House National Security Council, said Intel’s testing underscores “egregious gaps in U.S. technology protection policies,” adding that Chinese-origin tools “could easily be manipulated by Beijing” to disrupt American chip production.
A Politically Sensitive Moment
The debate comes at a time when the U.S. government — now a partial investor in Intel through federal semiconductor subsidies — is grappling with how hard to lean on China-related export controls. Facing pressure from Beijing’s retaliatory measures on rare-earth minerals, President Donald Trump has recently softened his stance on chip-export restrictions and this week approved Nvidia’s sale of certain advanced AI chips to China.
Still, bipartisan frustration is rising in Congress. Lawmakers recently revived legislation that would ban any U.S.-subsidised chip manufacturer from using Chinese equipment in its expansion plans — a measure directly relevant to Intel’s ongoing investments.
Intel’s Proximity to ACM’s U.S. Expansion
While ACM is headquartered in California, much of its R&D is conducted in Shanghai, and it counts major Chinese chipmakers — including sanctioned firms such as YMTC, CXMT, and SMIC — among its customers. SMIC alone accounts for 14% of ACM's total sales.
Despite its deep roots in China, ACM has been expanding aggressively in the United States. In 2023 it opened a new facility in Hillsboro, Oregon, just a mile from Intel’s primary R&D and early-manufacturing hub. U.S. hedge fund Kerrisdale Capital has argued that the Oregon site is designed to support ACM’s deepening engagement with Intel, citing tool qualifications and deliveries completed between late 2023 and mid-2024.
ACM disputes any suggestion that it is becoming a significant supplier to U.S. chipmakers.
China’s Growing Presence in Global Chip Equipment
Although ACM ranks 24th globally in semiconductor equipment and holds only 8% of the wafer-cleaning market, analysts say Chinese vendors are gaining ground. A U.S. House committee report last year warned that Beijing has been cultivating domestic semiconductor-tool capacity since at least 2015, long before Washington imposed broad export controls. Chinese tools, typically 20%–30% cheaper than competitors such as Applied Materials and Lam Research, are now beginning to pressure global pricing.
For Intel, the stakes are high. The company is racing to regain technological leadership, and integrating multiple tool suppliers — including lower-cost challengers — is a standard part of early-node testing. But as geopolitical pressure intensifies, even preliminary tool evaluations can become political flashpoints.
With billions of dollars in U.S. subsidies tied to strict scrutiny of China-related supply-chain exposure, the controversy around Intel’s ACM tests may be only the beginning of a much larger fight over how — and with whom — America builds its most advanced chips.