The US is investigating the sales practices of the world's five largest semiconductor equipment makers over national security concerns, with Lam Research failing to disclose details of its China business within the grace period.
The House Select Committee on the Strategic Competition Between the US and the Chinese Communist Party has sent a letter to Lam Research CEO Timothy Archer, demanding relevant documents by February 21, 2025, warning that non-compliance could trigger enforcement actions.
On November 7, 2024, the committee ordered ASML, Lam Research, Applied Materials, KLA, and Tokyo Electron to disclose data on their China sales and operations from fiscal 2022 to the present, with a deadline of December 1, 2024. The request covers revenue from China, export license filings with the Commerce Department, equipment models and process nodes shipped annually, and details on the top 30 Chinese customers.
Lam Research initially said it couldn't meet the deadline, prompting an extension to December 19. However, the company missed that deadline as well and has yet to provide the requested information.
Committee Chairman John Moolenaar and Democratic Representative Raja Krishnamoorthi underscored concerns that China's semiconductor manufacturing equipment purchases now surpass those of the US, South Korea, and Taiwan combined—potentially boosting Beijing's military capabilities and threatening US and allied security. They reiterated their commitment to safeguarding America's leadership in artificial intelligence.
