[News] U.S. Lawmakers Say China Bought Nearly $40B in Chipmaking Gear Despite Export Curbs

According to Reuters, citing a bipartisan investigation by U.S. lawmakers, loopholes in efforts by Washington and its allies to curb China’s chipmaking capabilities have allowed Beijing to purchase nearly $40 billion worth of advanced semiconductor equipment.

Reuters, citing an investigation by The Select Committee on the Strategic Competition between the United States and the Chinese Communist Party, said Chinese firms bought $38 billion in semiconductor manufacturing tools from the top five suppliers in 2024—up 66% from 2022, despite new export curbs introduced that year.

The report further revealed that China contributed nearly 39% of total revenue for Applied Materials, Lam Research, KLA, ASML, and Tokyo Electron. The Select Committee on the CCP noted in a press release that in 2024, China accounted for 44% of TEL’s sales, 42% for Lam Research, 41% for KLA, and 36% each for ASML and Applied Materials.

As Reuters notes, the investigation found that gaps and inconsistencies among export rules in the U.S., Japan, and the Netherlands allowed some non-U.S. suppliers to continue selling to Chinese firms barred by U.S. restrictions. To address these loopholes, the committee called for broader, coordinated bans on chipmaking tool exports to China, rather than narrow, company-specific measures.

The investigation also indicated that though U.S. export controls tightened, Dutch and Japanese suppliers expanded revenue from Chinese customers. The Select Committee on the CCP stated in its press release that China appears to be stockpiling lithography tools just below the sophistication threshold covered by existing restrictions.

In addition, according to the committee’s press release, the investigation further revealed that five entities identified by the U.S. government as national security threats are among the main clients of semiconductor equipment suppliers, including Huawei-affiliated companies.

Read more

• [News] China’s Naura Posts 8x SEMES Profit in 1H25, Shaking Korea’s Chip Equipment Sector
• [News] China Reportedly Tops Chip Startup Investments With USD 30 B, Capturing Over 50% Worldwide

(Photo credit: FREEPIK)