Overview
- Chinese firms bought about $38 billion of semiconductor manufacturing equipment in 2024, up 66% from 2022 and nearly 39% of sales at Applied Materials, Lam Research, KLA, ASML and Tokyo Electron.
- Lawmakers say inconsistent export regimes allowed non‑U.S. toolmakers to sell equipment to Chinese firms that U.S. companies were restricted from supplying.
- The report urges country‑wide export bans, tighter allied coordination and controls on tool components, and proposes using the Foreign Direct Product Rule if partners do not align, with any new actions decided by the executive branch.
- Three Chinese buyers—SwaySure, Shenzhen Pengxinxu and SiEn (Qingdao)—were identified as security concerns, and U.S. officials barred exports to them in December 2024.
- Shares of major toolmakers fell after the findings were released, while the companies emphasized their sales complied with the law and an industry executive said China revenues have begun to decline in 2025.