U.S. Lawmakers Urge Tougher Curbs on Chipmaking Gear Exports to China
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A U.S. congressional committee said Dutch, Japanese and American suppliers have fueled China’s semiconductor rise and called for broader export restrictions.
A U.S. congressional committee has recommended a comprehensive tightening of export controls on semiconductor manufacturing equipment to China, citing national security concerns over Beijing’s rapid buildup of its chip industry.
Top global equipment suppliers — including ASML Holding NV, Tokyo Electron Ltd. (TEL), and Applied Materials Inc., KLA Corp. and Lam Research Corp. — have driven China's semiconductor manufacturing growth, the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party said in a report on Oct. 7. In 2024, the Chinese market accounted for as much as 44% of TEL’s revenue, and 36% for both ASML and Applied Materials, the report found.
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- A U.S. congressional committee recommended stricter export controls on semiconductor equipment to China, citing national security concerns and rapid Chinese industry growth.
- In 2024, China bought $38 billion of chipmaking products from five top global suppliers, making up 44% of TEL’s revenue and 36% for ASML and Applied Materials; domestic equipment’s market share in China reached 21% in Q2 2025.
- Chinese firms are increasing use of domestic equipment—up to 40% in new lines—though lag in advanced technologies like lithography.
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Who’s Who
- ASML Holding NV
- ASML, a Dutch company, is a top global supplier of semiconductor manufacturing equipment. In 2024, China accounted for 36% of ASML's revenue. The company's sales of deep ultraviolet (DUV) lithography systems to China, particularly the NXT:1980i model, nearly tripled between 2023 and 2024, enabling Chinese fabs like SMIC to produce advanced chips.
- Tokyo Electron Ltd.
- Tokyo Electron Ltd. (TEL) is a global equipment supplier in the semiconductor industry. In 2024, the Chinese market accounted for 44% of TEL's revenue. The company, alongside other global suppliers, has significantly contributed to China's semiconductor manufacturing growth.
- Applied Materials Inc.
- Applied Materials Inc. is a major global semiconductor equipment supplier. In 2024, 36% of its revenue came from the Chinese market. A U.S. congressional committee noted that the company's sales, along with other top suppliers, have significantly contributed to China's semiconductor manufacturing growth. The committee recommended tightening export controls on such equipment to China due to national security concerns.
- KLA Corp.
- KLA Corp., or "科磊" in Chinese, is a global supplier of semiconductor manufacturing equipment. In 2024, it was among the top five companies that significantly contributed to China's semiconductor manufacturing growth. The company, along with others, sold $38 billion worth of products and services to China, a 66% increase from 2022.
- Lam Research Corp.
- Lam Research Corp. is one of the top global semiconductor manufacturing equipment suppliers. A U.S congressional committee's report noted that 45% of the revenue from five equipment makers, including Lam Research, from mainland China between 2022 and 2024 came from restricted Chinese entities. Lam Research did not respond to inquiries about adjusting its China strategy.
- Semiconductor Manufacturing International Corp.
- Semiconductor Manufacturing International Corp. (SMIC) is a Shanghai-listed Chinese chipmaker. A U.S. congressional committee report noted that sales from top global equipment suppliers enabled SMIC's production capabilities, including for advanced chips like 7-nanometer products, partially due to ASML's deep ultraviolet (DUV) lithography systems. SMIC is actively promoting domestic substitutes for semiconductor manufacturing equipment.
- Huawei Technologies Co. Ltd.
- Huawei Technologies Co. Ltd. is a Chinese entity whose affiliates have benefited from sales of semiconductor manufacturing equipment from global suppliers. These sales have contributed to the production capabilities of Chinese chipmakers, despite increased U.S. export controls aimed at restricting China's access to advanced chipmaking tools.
- Yangtze Memory Technologies Corp.
- Yangtze Memory Technologies Corp. (长江存储科技有限责任公司) is a leading Chinese memory chip manufacturer. The company is actively promoting the use of domestic substitutes for semiconductor equipment in response to US export controls, a strategy that involves quickly testing prototypes for production lines.
- ChangXin Memory Technologies Inc.
- ChangXin Memory Technologies Inc. is a Chinese chipmaker. Along with other leading manufacturers like SMIC and Yangtze Memory Technologies Corp., ChangXin Memory Technologies Inc. is actively promoting and utilizing domestic substitutes for semiconductor manufacturing equipment.
- Huatai Securities Co. Ltd.
- Huatai Securities Co. Ltd. is mentioned in the article in the context of a report they published. This report indicates that the domestic equipment market share on the Chinese mainland reached 21% in the second quarter of 2025, a 6 percentage point increase year-on-year, and is projected to hit 23% for the full year.
- Naura Technology Group Co.Ltd.
- Naura Technology Group Co. Ltd. (北方华创科技集团股份有限公司) is a Shenzhen-listed company that exemplifies China's progress in domestic semiconductor equipment. It broke into the top 10 global semiconductor equipment suppliers in 2023 and ranked seventh in the first half of 2025, with revenues around $2.2 billion.
- Minsheng Securities
- Minsheng Securities has identified a weakness in China's domestic semiconductor industry, noting its significant lag in key areas such as lithography, ion implantation, and metrology tools, despite breakthroughs in other areas like cleaning, etching, and deposition tools.
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