Lawmakers Turn Attention to Chips Companies as Industry Braces for China Restrictions

The lawmakers’ concerns echo recent fears voiced by colleagues on both sides of the political aisle.

An AI chip made by Tongfu Microelectronics is displayed during the World Semiconductor Congress in Nanjing, China, on July 19, 2023. STR/AFP via Getty Images

The House Select Committee on the Chinese Communist Party (CCP) on Nov. 7 sent inquiries to several semiconductor technology companies to assess the extent to which the industry relies on China, shortly after third-quarter earnings were posted and some of the companies projected a continued U.S.–China tech feud.

In letters to ASML, Applied Materials, Tokyo Electron, KLA, and Lam Research, committee chair Rep. John Moolenaar (R-Mich) and ranking member Raja Krishnamoothri (D-Ill.) noted that industry stakeholders have voiced concerns over increased export controls to China. For example, news that the Biden administration was considering new export controls on artificial intelligence (AI) chips led to shares falling for companies like ASML and Nvidia last month.