U.S. Congress Seeks Details on Semiconductor Sales to China

By Alexandra Alper and David Shepardson

WASHINGTON (Reuters) – Hardliners in Congress are urging major semiconductor equipment manufacturers – KLA, LAM, Applied Materials, Tokyo Electron, and ASML – to disclose their sales figures to China.

Republican John Moolenaar and Democrat Raja Krishnamoorthi sent letters to these companies on Thursday, as mentioned in a press release on Friday. This inquiry comes amidst mounting resistance to new U.S. regulations that aim to restrict shipments of semiconductor tools to China.

> "We understand that some manufacturers believe we should limit the expansion of…future unilateral U.S. controls, due to perceived impacts on the competitiveness of this sector," the lawmakers stated. "However, enhanced export controls simply are not mutually exclusive with a robust and thriving industry," they added.

U.S. firms KLA, LAM, Applied Materials, along with Tokyo Electron and ASML from Japan and the Netherlands, have not promptly responded to comment requests.

The letters reflect growing opposition, even from within the Democratic Party, to the Biden administration's delayed export regulations intended to restrict China's access to toolmaking equipment.

Washington is concerned that advancements in Chinese chip manufacturing capabilities, bolstered by the sales of U.S., Dutch, and Japanese machinery, are enhancing the modernization of China's military.

However, the U.S. has faced challenges in securing support from allies Japan and the Netherlands for another round of restrictions, raising fears within the U.S. industry that American companies may suffer unfairly as a result.

In an August letter, California Democrats warned that additional export controls "could send longstanding U.S. companies into a death spiral," as U.S. allies have not imposed comparable restrictions on their own companies selling to China.