House Select Committee Seeks to Tamp Down Chinese Access to Advanced Semiconductors

The House Select Committee on the Chinese Communist Party issued letters to several large semiconductor manufacturers this morning seeking detailed information on their sales and top customers. The move comes as Congress is considering strengthening previous restrictions on U.S. and allied sales of advanced semiconductors and manufacturing equipment to China. The letters are well-timed to hinder Beijing’s effort to stockpile supplies during a period of political transition.

U.S. Continues to Embrace Policy of ‘Small Yard, High Fence’

The Biden administration had previously restricted the sale of high-end semiconductors to China under the auspices of its “small yard, high fence” policy of tightly restricting the sale of critical technologies to foreign competitors. In 2022 and 2023, the Bureau of Industry and Security (BIS) introduced a series of export controls on advanced semiconductors. BIS likewise installed a licensing and notification regime for American firms seeking to sell advanced chip manufacturing equipment. During those years, President Joe Biden also issued two executive orders authorizing the screening of inbound and outbound investments in a series of critical industries, including semiconductors, artificial intelligence (AI), and quantum computing.

Moreover, the administration sought to convince other Western nations producing advanced semiconductors and related equipment — including South Korea, Japan, and the Netherlands — to restrict sales to China. As a result, both Dutch chipmaker ASML and Taiwan-based manufacturer TSMC partially ceased selling semiconductor manufacturing equipment and advanced AI chips to China.

Chinese Purchases of Western Chips Have Continued

Despite these initial restrictions, Chinese firms have continued to seek access to U.S.-produced high-end semiconductors and manufacturing equipment essential to running large AI systems. These have become a core element of China’s future military modernization efforts, which have prioritized the development of autonomous weapons systems and other AI-integrated guidance and surveillance networks to counter American military forces in east Asia. Beijing’s desire for U.S. and Western advanced semiconductors has also been fueled by its growing military support for Russia, as components funneled through China’s mainland and Hong Kong have been discovered in Russian weapons recovered at the front in Ukraine.

China’s reliance on foreign-produced advanced chips reflects the relatively poor state of its high-end domestic manufacturing capacity. According to industry data, Chinese purchases of semiconductor manufacturing equipment have surged over the past year in advance of potential further Western restrictions. Even as some companies, such as Huawei, have publicly claimed that their technology uses chips similar to those in the West, industry experts note that much of China’s capacity remains behind that of the United States, South Korea, Japan, Taiwan, and the Netherlands.

Stemming China’s Access to Advanced Semiconductors

The House Select Committee’s request for documents from leading Western chip manufacturers signals a deepening concern over China’s access to next-generation semiconductors as both countries remain locked in an intense technological competition.

While the committee can shed light on the efficacy of current U.S. policy, the next Congress should move quickly to patch any identified gaps in America’s export control regime to prevent China from continuing to stockpile equipment. Upon taking office, the incoming Trump administration should join this effort by placing pressure on America’s allies to further restrict sales and stymie the future development of China’s military.

Jack Burnham is a research analyst in the China Program at the Foundation for Defense of Democracies (FDD). For more analysis from Jack and FDD, please subscribe HERE. Follow Jack on X @JackBurnham802. Follow FDD on X @FDD. FDD is a Washington, DC-based, nonpartisan research institute focusing on national security and foreign policy.