US extends probe into chip-gear maker Applied Materials, possibly over shipments to China’s SMIC
Applied Materials disclosed on Thursday that it received another subpoena from the US Department of Commerce in May, as regulators request more information on shipments to China.
Applied Materials, which supplies chip-making tools to Samsung Electronics and Taiwan Semiconductor Manufacturing Company (TSMC), reported that 43 per cent of its total revenue came from China in the second quarter.
Applied Materials is being investigated by the Justice Department for sending equipment to SMIC via South Korea without export licences, sources told Reuters in November. Hundreds of millions of dollars of equipment is involved, one of the people said at the time.
The company repeatedly shipped equipment from its plant in Gloucester, Massachusetts, to a subsidiary in South Korea and then to SMIC, the people familiar with the investigation said in November.
