WASHINGTON, March 5, 2026, 11:34 EST
- U.S. senators Warren and Cotton asked Intel CEO Lip-Bu Tan to explain reported testing of ACM chipmaking tools
- Intel says ACM tools are not used in its semiconductor production processes
- CFO David Zinsner says Intel is reconsidering offering its 18A manufacturing process to outside customers
A bipartisan group of U.S. senators led by Elizabeth Warren and Tom Cotton pressed Intel Corp (INTC.O) on Wednesday over reports it tested chipmaking tools made by ACM Research (ACMR.O), warning of national security risks. “Intel’s relationship with ACM is concerning,” the senators wrote in a letter to Chief Executive Lip-Bu Tan. 1
The challenge lands at a sensitive moment for Intel. Tan is trying to rebuild credibility with customers and policymakers as the company tries to claw back a manufacturing edge and grow its contract chipmaking, or foundry, business.
Intel is also revisiting a key part of that plan. Chief Financial Officer David Zinsner said Tan is reconsidering whether Intel’s 18A process — a next-generation chipmaking technology — should be offered to outside clients after Intel largely kept it for internal use last year. “This is actually a good node to offer to external customers as well,” Zinsner said at the Morgan Stanley Technology, Media and Telecom conference in San Francisco, and Intel shares rose about 6% on Wednesday. 2
In their March 4 letter, the senators cited a Reuters report that Intel tested two ACM “wet etch” tools, equipment that uses chemicals to help carve the tiny patterns that form a chip’s circuits. They noted the Commerce Department put two ACM subsidiaries on its Entity List — a trade blacklist that restricts exports — and said ACM works with Chinese chipmakers such as SMIC and YMTC. The lawmakers also wrote Intel was awarded $10.86 billion under the CHIPS and Science Act, later repurposed $8.9 billion into an equity investment, leaving U.S. taxpayers with about a 10% stake, and demanded written answers by March 20. 3
Intel said “ACM tools are not used in Intel’s semiconductor production processes,” adding it complies with U.S. laws and engages regularly with the U.S. government on security matters. ACM did not immediately comment, Reuters reported; the company has previously said it shipped three tools to a major U.S. chipmaker for testing and that its U.S. operations are separated from a sanctioned Shanghai unit. 4
Intel’s board has been shifting, too. It elected Craig H. Barratt as the next independent chair after current chair Frank D. Yeary steps down following the May 13 annual meeting, and Tan used the announcement to praise Yeary. “I want to thank Frank for his commitment to Intel and his strong leadership as chair,” Tan said. 5
Yeary’s exit comes as Intel tries to regain ground lost to Taiwan Semiconductor Manufacturing Co (2330.TW) and other rivals in advanced production. “Intel has made a lot of bad decisions” while Yeary has been on the board, Seaport Securities analyst Jay Goldberg said in a Reuters report. Barratt has worked at Qualcomm (QCOM.O) and briefly at Intel, Reuters reported. 6
For Tan, the Senate letter adds another political problem to a turnaround that already depends on customers believing Intel can execute, not just talk.
But the outcome is not set. If lawmakers push for tighter limits on which tools can be tested in cutting-edge development lines, Intel could face delays qualifying equipment and moving new process technology into volume production, even as it works to lift yields — the share of usable chips per wafer — enough to protect margins.
The episode adds another layer of scrutiny to a turnaround that now runs through both engineering and Washington.
