Intel Takes Flak for Testing a Tool From a Sanctioned Company

Intel just had a bumpy week in the headlines. Reports indicate the company may have tested a wet-etching tool from a sanctioned company. Its CEO, Lip-Bu Tan, is also attracting attention for investing in tech companies that interact with Intel, with a New York Times report exploring his priorities as an executive and a private investor. Meanwhile, Intel was among several chipmakers (including AMD and Texas Instruments) accused of allowing chips to end up in Russian weapons, according to Bloomberg.
As Tom’s Hardware notes, Intel reportedly tested a wet-etching tool from ACM Research. By itself, testing hardware isn’t newsworthy, particularly when the tool in question is just one of many for a project. (Wet etching is a chemical process for removing material from wafers.) Intel was reportedly testing the wet etching tool for use in its 14A process, which is expected to debut in a couple of years.
Intel could use the boost that a successful node delivers, but its association with ACM Research, however small, didn’t go unnoticed. The California-based tool maker has two units (based outside the US) that have been hit by US sanctions, according to Reuters.
Although it doesn’t appear that Intel has been accused of violating any regulations, the company released a statement stating that it is complying with all applicable laws and regulations. The company didn’t indicate whether it will use the wet etching tool long-term. Critics of the testing are concerned that China could use the company’s tools to sabotage US chip production.
The New York Times report details Tan’s investments in chip companies and other firms with which Intel does business. The report noted that President Trump initially called for Tan’s resignation, expressing concern about what he viewed as Tan’s links to China. But Trump later appeared to change his mind, letting the US acquire a significant stake in Intel. Trump’s view of Tan doesn’t seem to have changed since then.
Recently, Intel has been negotiating with SambaNova Systems on a deal that could see it acquire the firm. The AI chip and software company has a familiar investor: Intel CEO Lip-Bu Tan. And Tan is the executive chairman for SambaNova. Separately, Intel attempted to buy AI startup Rivos, which a company associated with Tan invested in. Meta eventually picked up Rivos. The New York Times report noted that Tan stood to benefit from the deal.
Although neither Tan’s investments nor Intel’s tool testing is likely to cause it any long-term damage, one thing is clear: The sooner Intel can get some big product wins, the better.
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