This article first appeared on GuruFocus.
U.S. lawmakers are once again tightening their focus on China’s chip ambitions. A new bipartisan report revealed that Chinese semiconductor firms bought $38 billion worth of advanced chipmaking equipment over the past year despite multiple rounds of export restrictions meant to slow their progress. The findings have sparked fresh calls in Washington to close loopholes and expand limits on what China can buy.
The House Select Committee on China found that inconsistent rules between the U.S., Japan, and the Netherlands allowed non-U.S. equipment makers to keep selling high-end tools to Chinese firms that American companies couldn’t. Those sales coming from global chip equipment giants Applied Materials (NASDAQ:AMAT), Lam Research (NASDAQ:LRCX), KLA (NASDAQ:KLAC), ASML (NASDAQ:ASML), and Tokyo Electron (TOELY) jumped 66% from 2022 and made up nearly 39% of their total revenue.
These are the sales that gave China’s semiconductor fabs, including Huawei and SMIC, the production capacity and sophistication they now possess, the report said, warning that China’s growing chip strength could have profound implications for democratic values.
The push for tougher rules comes as Beijing doubles down on its domestic chip drive. Huawei is reportedly planning to double production of its 910C AI chip by 2026, as local giants like Alibaba (NYSE:BABA) and DeepSeek race to develop homegrown AI systems amid dwindling access to Nvidia (NASDAQ:NVDA) chips.
Disclaimer: This news has been automatically collected from the source link above. Our website does not create, edit, or publish the content. All information, statements, and opinions expressed belong solely to the original publisher. We are not responsible or liable for the accuracy, reliability, or completeness of any news, nor for any statements, views, or claims made in the content. All rights remain with the respective source.