SAN FRANCISCO, U.S. lawmakers are urging wider restrictions on the export of chipmaking equipment to China following a bipartisan investigation that revealed Chinese semiconductor manufacturers bought approximately $38 billion worth of advanced machinery last year.
The committee urged the United States and its allies to impose broader restrictions on the sale of chipmaking tools to China, rather than focusing solely on specific Chinese companies.
According to the report, Chinese firms legally purchased $38 billion worth of semiconductor manufacturing equipment from the world’s five leading suppliers a 66% jump from 2022 when many export controls were first introduced.
These purchases represented nearly 39% of total global sales for Applied Materials (AMAT.O), Lam Research (LRCX.O), KLA (KLAC.O), ASML (ASML.AS), and Tokyo Electron (8035.T).
These are the sales that have made China increasingly competitive in producing a wide range of semiconductors, with serious implications for human rights and democratic values worldwide, the report stated.
Both Democratic and Republican administrations in the United States have continued efforts to limit China’s ability to produce advanced microchips, which are essential for sectors such as artificial intelligence, Defense, and Military modernization. At the same time, the two global powers are competing to export high-end technologies including AI data Center to other countries.
Mark Dougherty, president of Tokyo Electron’s U.S. division, noted that the company’s sales to China have begun to decline in 2025, partly due to tighter export regulations. He also emphasized the need for greater coordination between the U.S. and Japanese governments, saying:
It’s clear that from the U.S. perspective, there’s an outcome that is still desired but has not yet been achieved.
ASML and KLA declined to comment on the findings, while Applied Materials and Lam Research did not respond to requests for comment.
The committee noted that the tool manufacturers fully cooperated in preparing the report and were briefed on its conclusions.
It identified three Chinese companies SwaySure Technology Shenzhen Pengxinxu Technology Integrated Circuits as posing significant security concerns. These firms, now key customers of global chip equipment suppliers, were previously flagged by the committee’s leaders, Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi , in a letter to the U.S. Commerce Department. The letter alleged their involvement in a covert network supporting Huawei Technologies leading U.S. officials to block exports to the companies in December.
The report further recommended that any expanded restrictions should also cover components and parts that could enable China to manufacture its own semiconductor production tools.
