Intel may once again find itself at the center of geopolitical and national security concerns, as reports suggest the US chipmaker tested semiconductor manufacturing tools linked to a company with sanctioned China-based units. According to Reuters, Intel evaluated chipmaking equipment in 2025 from ACM Research, a US-based supplier whose overseas subsidiaries have previously been targeted by US sanctions.
The tools in question are wet-etch systems, critical for removing material from silicon wafers during semiconductor production. Sources cited by Reuters say Intel assessed these tools for compatibility with its highly anticipated 14A manufacturing process, expected to launch in 2027. The 14A node is widely seen as a make-or-break initiative for Intel’s ambitions in the global foundry business.
Concerns arise because two ACM Research units in Shanghai and South Korea were restricted in 2024 from accessing US technology, following allegations that they supported China’s military-linked technology development. ACM has strongly denied these claims, and Reuters reported no evidence that Intel violated US regulations.
However, the situation is sensitive. Intel is now partially owned by the US government, and its potential use of tools associated with sanctioned entities in advanced fabs has triggered national security questions. The matter is further complicated by the fact that Walden International—founded and chaired by Intel CEO Lip Bu Tan invested in ACM Research in 2019.
ACM Research stated it cannot comment on specific customer engagements but confirmed it has delivered multiple tools from its Asian operations to US customers. The company also said three tools were shipped to a major US semiconductor manufacturer, with some already passing performance tests. ACM maintains that its US operations are fully separated from sanctioned units and pose no national security risk.
As Intel navigates technological, commercial, and political pressures, its decisions around the 14A process could significantly shape its future in the global semiconductor industry.
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