12:00 PM EDT, 10/08/2025 (MT Newswires) -- (Updates with KLA's response in the seventh paragraph.)

US lawmakers are calling on the Trump administration to expand the export ban on semiconductor manufacturing equipment to China after a bipartisan investigation found that Chinese chipmakers spent $38 billion to acquire chipmaking tools in 2024.

The investigation found that companies in the US, Japan, and the Netherlands significantly enhanced China's ability to produce chips, while Chinese companies exploited gaps in export controls to acquire chipmaking equipment, according to a report released on Tuesday by the US House of Representatives Select Committee on China.

The $38 billion spend accounted for about 39% of the combined revenue of top five semiconductor manufacturing equipment suppliers, the report said.

Companies named in the report include US-listed suppliers Lam Research ( LRCX ) , Applied Materials ( AMAT ) and KLA (KLAC), along with ASML in the Netherlands and Tokyo Electron in Japan.

The report said the investigation did not focus on whether any of the companies had violated export control laws.

The panel also recommended expanding country-wide restrictions for China on chipmaking tools, widening the list of restricted Chinese entities, and aligning export rules across allied nations to prevent diversion.

KLA declined to comment, while Lam Research ( LRCX ) and Applied Materials ( AMAT ) did not respond to MT Newswires' request for comment.

Price: 141.95, Change: +1.60, Percent Change: +1.14