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3h ago

Lawmakers’ China Chip-Tool Probe Finds $38 Billion in 2024 Sales, Fuels Push for Broader Bans

The bipartisan finding highlights gaps across allied export rules, increasing pressure for tighter coordination.

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Flags of China and U.S. are displayed on a printed circuit board with semiconductor chips, in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration
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Overview

  • Chinese firms bought roughly $38 billion of semiconductor manufacturing equipment in 2024, equal to nearly 39% of combined sales at five leading toolmakers and up 66% from 2022.
  • Inconsistent restrictions across the United States, the Netherlands and Japan allowed non‑U.S. suppliers to sell equipment that U.S. firms could not, according to the House Select Committee report.
  • Lawmakers urged country‑wide controls on tool exports to China, expanded limits on components, and potential use of the Foreign Direct Product Rule if allies fail to align.
  • The investigation alleged no legal violations by Applied Materials, Lam Research, KLA, ASML or Tokyo Electron; a Tokyo Electron executive said China sales have begun to decline this year as rules tightened.
  • Shares of major toolmakers fell after the report and calls for tougher curbs, with ASML sliding as much as 7.1% and Tokyo Electron, Applied Materials, KLA and Lam Research also lower.