US lawmakers call for broader bans on chipmaking tool sales to China

Core Insights - U.S. lawmakers are advocating for broader bans on chipmaking equipment sales to China following a bipartisan investigation revealing that Chinese chipmakers purchased $38 billion worth of sophisticated equipment in the previous year, marking a 66% increase from 2022 [1][3]. Group 1: Legislative Actions and Investigations - The U.S. House of Representatives Select Committee on China reported inconsistencies in export rules among the U.S., Japan, and the Netherlands, allowing non-U.S. manufacturers to sell to certain Chinese firms that U.S. companies cannot [2]. - The committee is pushing for comprehensive bans on chipmaking tool sales to China, rather than targeting specific Chinese companies [2]. Group 2: Market Dynamics and Sales Data - The $38 billion in equipment purchases accounted for nearly 39% of the total sales from major suppliers such as Applied Materials, Lam Research, KLA, ASML, and Tokyo Electron [3]. - Sales to China have started to decline in 2023 due to new regulations, indicating a shift in market dynamics [6]. Group 3: Security Concerns - Three Chinese firms, SwaySure Technology Co, Shenzhen Pengxinxu Technology Co, and SiEn (Qingdao) Integrated Circuits Co, have been identified as major customers of U.S. toolmakers and are considered security risks [7]. - These firms were previously flagged for alleged connections to a network supporting Huawei Technologies, leading to export restrictions imposed by U.S. officials [8].