The Chinese semiconductor equipment company Advanced Micro-Fabrication Equipment Inc. (AMEC), which was listed on the U.S. Department of Defense's Chinese Military Companies (CMC) list, has been removed from the list after approximately four months of litigation. AMEC, which has led the domestication of semiconductor equipment in China, is expected to accelerate the development of equipment for advanced semiconductor manufacturing as it is not included in the U.S. export restrictions against China.
According to foreign media outlets, including Bloomberg and the South China Morning Post, on the 19th, AMEC has been excluded from the CMC list through a lawsuit against the U.S. Department of Defense. It has been about four months since AMEC filed a lawsuit claiming that being listed on the CMC was unjust.
AMEC is a corporation that manufactures etching equipment that removes unnecessary parts from semiconductor wafers. It is the second-largest semiconductor equipment company in China, following Naura Technology. Gerald Jin Yiao, who previously worked at Intel, Lam Research, and Applied Materials, founded AMEC in 2004. AMEC is promoting domestication not only for the development of advanced equipment but also for the components installed in the equipment. Yiao, the CEO, noted, "By the end of last year, we had replaced 80% of the U.S. sanctioned parts with domestically made components, and we plan to replace 100% by the end of this year."
However, the revelation that the U.S. Department of Defense had listed AMEC as a Chinese military corporation sparked controversy. The U.S. Department of Defense manages the CMC list for companies associated with the People's Liberation Army of China. Companies included in this list are prohibited from transactions with U.S. corporations. Importing parts of equipment containing U.S. technology and exporting equipment to U.S. companies are also controlled. Huawei and SMIC, a foundry company, are also on this list.
In response, AMEC filed a lawsuit in the U.S. District Court for the District of Columbia in August, claiming that the actions of the U.S. Department of Defense were taken without legal justification and caused "serious and irreparable" harm. About four months after filing the lawsuit, it was excluded from the regulatory list. The U.S. Department of Defense has not issued a separate explanation regarding this matter.
AMEC is not included in the U.S. export regulations list against China, hence it is expected to accelerate the development of equipment for advanced semiconductor manufacturing. AMEC supplies equipment not only to domestic corporations focusing on legacy semiconductor manufacturing, such as SMIC and Huahong Semiconductor, but also to global companies like TSMC. AMEC supplies dry etching equipment for the 5nm process to TSMC, the world's top foundry corporation. It has also supplied etching equipment to Samsung Electronics and SK Hynix. CEO Yiao has indicated that they are working on the development of advanced semiconductor equipment below 2nm level.
Kyung-Joon Kim, an emeritus professor at Seoul National University and head of the Next-Generation Intelligent Semiconductor Project, said, "China's semiconductor equipment technology is far superior to that of domestic semiconductor equipment companies," adding, "It will strengthen its technological capabilities in the field of advanced semiconductor manufacturing."
However, there are also projections that regulations on Chinese semiconductor equipment corporations will continue to strengthen. An industry official in the semiconductor equipment sector stated, "Despite U.S. regulations, Chinese corporations are rapidly growing by finding alternative routes to secure necessary technological capabilities," noting that "the U.S. government is aware of this and will seek ways to control the localization of China's advanced semiconductor technology."