Overview

• Chinese firms bought about $38 billion of semiconductor equipment last year, a 66% jump from 2022 and roughly 39% of sales for five leading toolmakers, the House committee found.
• Inconsistent rules across the United States, Japan and the Netherlands enabled non‑U.S. suppliers to sell gear that American companies could not, with ASML’s deep‑ultraviolet systems cited as a key example.
• The committee urged an allied‑wide ban on semiconductor manufacturing tools for China, proposed using the Foreign Direct Product Rule if partners do not align, and recommended curbs on components China could use to build its own tools.
• U.S. regulators previously barred exports to SwaySure Technology, Shenzhen Pengxinxu Technology and SiEn (Qingdao) after security concerns were raised, and the Commerce Department expanded controls to cover entities 50% or more owned by listed firms.
• Tokyo Electron’s U.S. chief said industry sales to China have begun to decline this year partly due to new regulations, as toolmakers cooperated with the investigation focused on AI and military security risks.