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The U.S. Commerce Department is probing whether a South Korean maker of parts for machines that produce semiconductors has been selling to Chinese companies that are subject to U.S. sanctions, said two people with knowledge of the investigation. The review signals a new effort by the U.S. government to root out how companies such as Huawei are getting access to crucial chip-making technology, despite escalating U.S. export controls.

The officials are investigating whether Ronda Korea has been selling components using technology developed by Fremont, Calif.,-based Lam Research to sanctioned Chinese companies, the people said. The Commerce Department is also looking into whether other equipment manufacturers in South Korea are using U.S. technology to supply sanctioned Chinese companies, the people said.

The investigation into Ronda is ongoing, and it’s not clear whether the Commerce Department will penalize the South Korean manufacturer, such as by putting it on a list of companies barred from trading with the U.S.

A spokesperson for Lam said Ronda was not an authorized supplier of its products, and the company is actively engaged with the Commerce Department to ensure it is complying with restrictions on semiconductor technology shipments to China. Representatives of Ronda did not reply to multiple requests for comments. The Commerce Department declined to comment.

Chinese chip makers have faced increasingly tough restrictions on obtaining components and equipment necessary for producing advanced semiconductors since 2020, when the U.S. government imposed restrictions on sales to Huawei. Two years later, the U.S. introduced sweeping controls on exports to other Chinese chipmakers. Along with the U.S., the Netherlands and Japan are among the largest makers of semiconductor manufacturing equipment. The two countries have followed the U.S. in enacting restrictions on Chinese chipmakers, strengthening the blockade on China's high-end semiconductor technology imports.

South Korean companies emerged as a primary alternative to keeping the Chinese chip plants running since early last year, according to employees at Chinese chipmakers. South Korea is known for making memory chips and nurtures a niche semiconductor equipment industry with smaller manufacturers. The country has not yet imposed strict rules on chipmaking technology exports.

But since March, the Commerce Department has been urging South Korea to restrict exports of equipment and technologies for advanced chipmaking to China, one of the people with direct knowledge of the situation said. The investigation into Ronda Korea is part of this effort. Details on the other companies being investigated couldn't be learned.

South Korea, however, faces possible retaliation from Beijing that could limit its manufacturing exports to China, an important trading partner. (Bloomberg earlier reported the U.S. was pushing South Korea to restrict semiconductor exports to China.)

Ronda offers parts for etching tools used to make advanced chips for smartphone and data centers, such as silicon electrodes and radio frequency transmitter parts. It’s been expanding its footprint in China. Since last year, the company has set up three subsidiaries in China, including two chipmakers and one equipment part manufacturer, according to Chinese information provider Qichacha.

U.S. officials have grown increasingly concerned that Chinese companies, including Huawei and Semiconductor Manufacturing International Corp., are able to make advanced chips despite the sanctions.

The U.S. government’s examination of possible export violations has already had a chilling effect on some manufacturers. Early this year, some South Korean and European equipment component suppliers cut off sales with Chinese customers after being interviewed by U.S. investigative officials, the two people with direct knowledge of the situation said.