Intel Corp. (NASDAQ:INTC) has tested chipmaking tools this year from ACM Research Inc. (NASDAQ:ACMR), a U.S.-based equipment maker with deep ties to China and two overseas units previously targeted by U.S. sanctions.



The U.S. barred two of ACM Research’s units in Shanghai and South Korea from receiving Washington technology for alleged links to China’s military chip efforts, which ACM Research denies.



Intel tested wet etch tools, used to remove material from silicon wafers, for potential use in its cutting-edge 14A chip production.



Also Read: Did Intel Poach Taiwan Semiconductor Know-How? CEO Calls Rumors’ Speculation’



The chipmaking process is scheduled for a 2027 launch, Reuters reported on Friday, citing sources familiar with the matter.



China hawks warn that Intel’s evaluation of tools from a supplier tied to sanctioned entities raises national security red flags, the Reuters report noted. Concerns include the leakage of sensitive chipmaking expertise, erosion of Western supply chains, and the risk of hostile interference.



Benzinga has reached out to Intel investor relations for their take on the report and is awaiting a response.



<h2>ACM Research Responds To Sanctions Concerns</h2>



ACM Research confirmed that its U.S. team sold and delivered multiple tools from its Asian operations to domestic clients. It included three shipments to a “major U.S.-based semiconductor manufacturer,” some of which met performance standards.



It said its U.S. operations are isolated from its sanctioned Chinese units and that it safeguards customer trade secrets.



Intel, Advanced Micro Devices, Inc. (NASDAQ:AMD), and Texas Instruments Inc. (NASDAQ:TXN) face multiple lawsuits in a Texas state court accusing them of failing to stop their chips from ending up in Russian weapons that killed and injured Ukrainian civilians.



The companies said they complied with sanctions.



<h2>Intel’s Turnaround And AI Strategy</h2>



Intel stock has gained over 97% year-to-date, backed by PC sales recovery, AI focus, U.S. government support, and major potential customer deals like Apple Inc. (NASDAQ:AAPL).



In October, Intel CEO Lip-Bu Tan said he is refocusing the company on engineering excellence after years of complacency eroded its semiconductor leadership.



Tan has shifted Intel’s strategy toward artificial intelligence and its foundry business, which still trails Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM).



INTC Price Action: Intel shares were down 0.76% at $39.21 during premarket trading on Friday, according to Benzinga Pro data.



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<li>Intel Ditches Sale Talks And Reinvents Networking Business Inside Its AI Strategy</li>
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Intel tested chipmaking tools from ACM Research, a U.S. company with ties to China, despite sanctions concerns. ACM's units were previously barred from receiving U.S. technology due to alleged links to China's military. Intel's evaluation raises national security concerns, including potential leakage of sensitive expertise. Intel's stock rose 97% YTD, driven by AI focus and government support. Intel shares fell 0.76% to $39.21 in premarket trading.

- Intel Corp. has tested chipmaking tools from ACM Research, a U.S. equipment maker with ties to China, despite U.S. sanctions on two of its overseas units.  
- The testing involves wet etch tools for Intel's upcoming 14A chip production, scheduled for launch in 2027, raising national security concerns regarding sensitive technology leakage.  
- ACM Research asserts that its U.S. operations are separate from sanctioned units and emphasizes compliance with trade secret protections, while Intel's stock has surged over 97% this year amid a strategic shift towards AI.

Intel's Chip Ambitions Stir Alarm Over China-Linked Tech