WASHINGTON, March 5, 2026, 18:03 EST
- Intel faced questions from U.S. senators about its use of chipmaking equipment from ACM Research, as lawmakers raised national security issues.
- Intel said its semiconductor production doesn’t use ACM tools.
- Intel is feeling the squeeze while it considers opening its 18A manufacturing process to external clients.
Intel Corporation is facing scrutiny from a bipartisan group of U.S. lawmakers after it tested ACM Research’s chipmaking tools, with the lawmakers cautioning that such activity risks leaking sensitive manufacturing expertise.
The letter injects fresh political risk into Intel’s situation, coming as Washington cracks down harder on tech suppliers with China ties—right when the U.S. is also pushing Intel to ramp up chipmaking at home. “ACM could gain exposure to cutting-edge chipmaking processes,” the lawmakers warned. In response, Intel countered that “ACM tools are not used in Intel’s semiconductor production processes.” Reuters
Intel faces tough timing. The chipmaker is making its case to customers that its U.S. plants can provide a secure domestic option for advanced semiconductors, all while leaning on government support as it pours money into new manufacturing capacity.
Democratic Senator Elizabeth Warren and Republican Senator Tom Cotton, along with other lawmakers, flagged ACM’s connections to China in their letter, warning that the company’s operations inside Intel facilities might end up aiding competitors tied to the Chinese military.
ACM’s customer roster features blacklisted Chinese chipmakers Yangtze Memory Technologies Co (YMTC) and Semiconductor Manufacturing International Corp (SMIC), the analysts flagged. They also pointed out that two of ACM’s offshore subsidiaries have landed on U.S. sanctions lists.
Intel says it follows U.S. laws and regulations, adding that it regularly coordinates with the U.S. government on security issues.
Reuters didn’t get an immediate response from ACM. Previously, the company cited its policy against discussing “specific customer engagements,” though it did say three tools had shipped to a “major U.S.-based semiconductor manufacturer” for testing—some of which, it said, hit performance targets.
Intel’s manufacturing ambitions remain front and center for investors. Speaking Wednesday at the Morgan Stanley technology conference, CFO David Zinsner noted that CEO Lip-Bu Tan is now weighing whether to open up Intel’s 18A process to outside customers—a notable change from last year, when Tan’s preference was to reserve external foundry efforts for 14A. “He’s now starting to recognize that this is actually a good node to offer to external customers as well,” Zinsner said. Reuters
Intel calls its leading-edge manufacturing nodes “18A” and “14A.” Zinsner weighed in as the company tries to boost “yield”—the share of usable chips per silicon wafer. Reuters previously reported just a fraction of 18A chips had reached shippable quality, a yield shortfall that’s been squeezing margins.
Leadership changes are underway at Intel as Tan drives efforts to overhaul the company. Earlier this week, Intel announced that board chair Frank Yeary plans to step down following the annual shareholder meeting in May, with Craig Barratt, a current board member, set to become independent chair. “I want to thank Frank for his commitment to Intel and his strong leadership as chair,” Tan said. Intel Corporation
Some investors aren’t shrugging off the board shake-up. “I think his departure was long overdue,” said Seaport Securities analyst Jay Goldberg. He pointed out: “Intel has made a lot of bad decisions” during Yeary’s stint on the board. The company ruled U.S. chip manufacturing for decades, but after about 2010, it stumbled, falling behind Taiwan Semiconductor Manufacturing Co. Reuters
Still, pressure out of Washington isn’t going away. If lawmakers crack down on suppliers or tighten rules on who gets into Intel’s facilities, landing big outside manufacturing contracts turns into a tougher sell. Intel also faces the ongoing challenge: showing that its latest manufacturing processes actually scale and turn a profit.
Intel hasn’t clarified if testing of the ACM tools will stop. Lawmakers, in their letter, pressed the company for details on how it safeguards sensitive data and how it assesses national security risks connected to suppliers with ties to China.
