US: Five semiconductor companies sold important technology to China

A report by the House Special Committee on US-China Strategic Competition released on October 7 said five major semiconductor equipment makers, including Europe's ASML, sold $38 billion worth of critical technology to China by 2024, including companies deemed a threat to US national security.

The commission found that China now accounts for 39% of the total revenue of the top five manufacturers of the highly complex, specialized machines needed to make computer chips.

The report mentioned US companies Applied Materials, KLA Corporation and Lam Research, but said ASML of the Netherlands and Tokyo Electron of Japan had significantly increased sales to restricted Chinese entities as the US imposed tighter controls on exports by its companies.

The investigation found that five Chinese companies restricted by the US for their military ties were among the top 30 customers of all five equipment makers in the 2022-2024 period.

These companies include Semiconductor Manufacturing International Corporation (SMIC), China's largest chipmaker, and Yangtze Memory Technology Company (YMTC).

The technologies provided by the five companies are crucial to China's efforts to boost its chip manufacturing industry amid US restrictions and as China looks to catch up in the race toward advanced AI technology.

The report said ASML would sell 70% of its advanced DUV lithography machines to China by 2024, up from 26% in 2022. These machines are crucial for manufacturing sophisticated semiconductors used in AI and military applications.

The report warned that China is making every effort to build a self-sufficient domestic semiconductor manufacturing industry, noting that the technology could be used for military projects that threaten the United States.

The committee recommended significantly expanding export controls to include all semiconductor manufacturing equipment capable of producing advanced chips destined for China, not just specific components or products.

The committee also called for better coordination of export controls between the US and other countries, particularly the Netherlands and Japan, and warned that the current system creates an “unlevel playing field” where foreign companies can sell equipment that US companies cannot./.

(TTXVN/Vietnam+)

Source: https://www.vietnamplus.vn/my-nam-cong-ty-ve-thiet-bi-ban-dan-da-ban-cong-nghe-quan-trong-cho-trung-quoc-post1068928.vnp