According to the report, regulatory differences between the United States, Japan and the Netherlands allowed Chinese companies to purchase equipment from manufacturers that American companies could not sell to. Suppliers mentioned include Applied Materials, Lam Research, KLA, ASML and Tokyo Electron.

The study showed that sales to China increased by 66% compared to 2022, despite the restrictions currently in place. Lawmakers say such deals strengthen China’s position in semiconductor manufacturing, which could affect global technology and military competition.

The committee recommended introducing broader measures covering not only specific companies but also components that China could use to build its own systems. The report states that Beijing is trying to overhaul its entire chip supply chain and turn even narrow market segments into technological competitive zones.

Source: Ferra

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