Overview

• A bipartisan House Select Committee report says Chinese firms purchased about $38 billion of chipmaking equipment in 2024, up 66% from 2022 and equaling nearly 39% of combined sales at Applied Materials, Lam Research, KLA, ASML and Tokyo Electron.
• The sales were lawful and mostly involved older or non‑advanced tools that remain permitted under current U.S., Dutch and Japanese export regimes.
• Investigators cite uneven rules and enforcement among allies that allowed non‑U.S. suppliers to sell equipment barred to U.S. companies at certain Chinese customers.
• The committee urges country‑wide controls that cover all PRC buyers and related components, and it recommends invoking the Foreign Direct Product Rule if partners do not align.
• The report’s release follows a recent BIS step to extend restrictions to firms 50% owned by listed entities, while Tokyo Electron’s U.S. chief says China sales are beginning to decline this year as coordination tightens.